One of the oil and gas companies to have seen its stock make considerable gains on Wednesday was MDM Permian (OTCMKTS:MDMP). Yesterday, the stock made significant gains after the company announced that it completed an oil well deal.
In a news release, MDM Permian revealed that it completed the acquisition of the Ogelsby 1-A oil well which is located in Mertzon, Texas. It is a major development considering the fact that the oil well in question had first been drilled in 1985 and it continues to produce oil and gas to this day. MDM Permian has stated that the site could potentially have more resources and went on to reveal that there could be as many four reservoirs at the site that still remain untapped.
Hence, the excitement among investors with regards to the MDM Permian stock on Wednesday was no surprise. The company had also stated that at this point it is exploring the ways in which it could actually get to access the untapped reservoirs.
The president of the company Michael Rafael stated that the acquisition of the well is consistent with MDM Permian’s strategy to raise its production and reserves significantly. He went on to add that the company is going to explore the possibility of acquiring more properties in the vicinity of the well and thereby add to its leaseholds.
The announcement created significant interest in the MDM Permian stock and the trading volumes in the penny stock hit a staggering 5.7 million. However, at the same time, it should be noted that the company is a fairly new entity and was established in 2017.
However, it is also necessary to point out that the company’s origins go back to 1981 when the company MDM Energy was established. At this point in time, the company is looking to build up its presence in two areas. The first one is the Eastern New Mexico region and the other is the Permian Basin in Texas.
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