Ever since Fieldpoint Petroleum Corporation (NYSEAMEX:FPP) hit a two-year low of $1.72 per share in early-October, it has been on a steady uptrend. However, is it really ready to go back to the peak of $5.20 hit on Mar. 7, 2011?
Yesterday, FPP gained 1.50% to its value closing at $4.73 per share. In terms of turnover, barely 29 thousand shares of common FPP stock changed hands, which is considerably lower than the average trading volume of 42K.
Established in 1980 in Texas, Fieldpoint Petroleum Corporation has been operating in the Oil & Gas indistry for quite a while now. In fact, the company’s core activities go down to the acquisition, exploration and subsequent development of oil and natural gas properties nationwide. At present, FPP holds a stake in more than 300 wells in five states, namely Texas, Oklahoma, Wyoming, New Mexico and Louisiana, and sells the oil and gas it produces on the spot market. On Jan. 9, the company announced its intention to start drilling a second well in one of its New Mexican sites.
As far as FPP’s financials are concerned, it appears to be doing just fine. Indeed, FPP has recorded no annual losses for the last 9 years already. The company hit a record-breaking sales revenue of approx. $7 million in 2010. What is more, the aggregate nine-month revenue for the first three quarters of 2011 amounts to $5.4 million, which means that FPP could still go beyond the $7M threshold if it has maintained a consistent sales rate in the last three months or so. The company’s current ratio seems high enough to ensure a normal working cycle.
In the light of the facts mentioned above, it is no wonder that FPP stock has been climbing up the charts for the last few months. Yet, to further maximize shareholder value, it will sooner or later have to increase its production capabilities, which is dependent upon the oil and gas deposits contained in the company’s currently-owned (and soon-to-be-acquired) properties.