A few days after United American Petroleum Corp. (OTC:UAPC
, UAPC message board
) issued two updates on its drilling program and announced a new working interest acquisition, its stock price climbed to a new six-month high during yesterday's trading session.
UAPC also closed the market yesterday at its highest price for the past half a year - $0.97 for a share. That nearly 9% increase in value happened on a trading volume that was way above the average of around 14,000 for the past three months. Short-term, the increased trading interest could raise further the value of UAPC stock.
The news from United American Petroleum have been controversial this months, as seen on the stock chart as well. Last week, the company updated investors on the drilling operations in Bastrop County, Texas and in Gonzales County, Texas, promising an increase in production soon. That actually raised the share price from the bottom it hit at the end of last year.
In an SEC filing from December, UAPC said that it had acquired a 100% working interest in the McKenzie State Well No. 1 which is located in Pecos County, Texas. Though, the filing said also that the company had increased its debt which had not been positive news for the market. UAPC borrowed additional $550,000 from an investor under an existent agreement from October 2011. In exchange the company issued to the investor a convertible promissory note in the same principal amount.