Nitro Petroleum Incorporated announced on Tuesday that it had received an irrevocable letter of intent from the major shareholder of the company whereby 100,000,000 restricted shares will be returned to the company for cancellation. Today, the announcement came that those 100 million shares have been cancelled and will be returned to treasury stock. The cancellation of those 100 million shares resulted in a 67% reduction in company’s total outstanding shares, leaving the company with only 48,540,000 shares of common stock outstanding.
Nitro is a small to midsized independent energy company that actively engages in the acquisition and development of oil and natural gas properties in the Southern United States. They currently have 9 wells in production in the prolific area of Cooke County, Texas. Operations are taking place on the Barnett Shale, which is the largest natural gas play in Texas by far, and considered to be one of the largest U.S. domestic natural gas plays, with sizable, remaining resource potential.
The President of Nitro Petroleum, Larry Wise, explains that with the new market cap the company can now move ahead with potential financing opportunities in this very exciting energy market. Nitro has been on the move in 2008 acquiring interest in HOCO Oil Inc. and Buccaneer Energy Inc., as well as entering several joint projects with Toro Ventures Inc. These developments have translated into over $225K in revenues for the company in the first three quarters of 2007, a record year for Nitro.
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