Empire Petroleum Corporation (OTCMKTS: EMPR) has been on a fine run going by a 300% plus rally year to date. The stock is up by more than 285 for the week. The rally has coincided with an uptick in oil and gas prices as the global economy continues to recover from the pandemic.
However, the confirmation that the company has acquired oil and gas producing assets and related gathering assets in Lea County, Mexico, appears to have fuelled the rally. Ever since the company announced the purchase from ExxonMobil Corporation its stock has continued to grind higher
The acquired asset comprises 700 Gross oil Gas and injector wells covering 40,000 net acres of Permian leasehold. The assets are also characterized by high working and net revenue interests with the potential of generating 1,100 net barrels of oil a day, with 67% being oil.
Empire Petroleum Corporation financed the acquisition by entering into a $16.25 million senior secured convertible note with Energy Evolution Master. According to CEO Tommy Pritchard, the acquisition affirms Empire’s push to manage mature producing oil properties with predictable long-life production.
Market Reaction:
On Thursday, EMPR stock went down 3.30% at $2.05 with more than 3.1k shares, compared to its average volume of 6.59K shares. The stock has moved within a range of $2.0000 – 2.1200 after opening the trade at $2.06.
