The previous week did not end on a particularly strong footing for Orion Diversified Holding Co Inc (OTCMKTS:OODH) as the stock suffered from a selloff on Friday and ended the day with a decline of as much as 4%. While the decline may have been bad news for some investors it should be noted that Orion Diversified did make a rather important announcement on the day.
On Friday, OODH stock slumped 3.45% to $0.0280 with more than 420K shares traded, compared to volume of 128.55K shares. The stock moved within a range of $0.0280 – 0.0340 after opening trading at $0.0310.
Orion Announces an Acquisition in the Anadarko Basin of Oklahoma
The company announced that it had been successful in acquiring a royalty interest in the Anadarko Basin situated in the state of Oklahoma. The property in question stretches across an area spanning 640 acres and produces 50 mcfpd from a total of 3 wells. Orion Diversified picked up a royalty interest of 2.04% non-operating interest.
Tom Lull, who is the Chief Executive Officer of Orion Diversified, noted that each acquisition is going to help in building the company’s revenues. The company has picked up other royalty interests over the recent past and all of those have been adding to the revenues. The latest property in which the company picked up a property interest is operated by Merit Energy. That being said, Lull also noted that picking up royalty interests are expensive and noted that Orion Diversified was fortunate at having picked up these interests for fair prices.
“Every acquisition builds more revenue, and we are receiving revenue checks from our working interest operations and royalties. We own royalties all over the United States, and this latest acquisition is operated by Merit Energy.” commented Tom Lull, CEO of Orion. Royalties are very expensive, and we feel very fortunate to be able to continue growing in this overinflated market.”
OODH stock is trading below the 20-Day and 50-Day Moving averages of $0.0334 and $0.0324 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0305. The company has a total market capitalization of $5.46 million.