Boston, MA 03/03/2014 (wallstreetpr) – Will Petrotech Oil & Gas Inc (OTCMKTS:PTOG) be able to benefit from the Ukraine crisis? The company has only declared meaningful revenues in the third quarter of 2013 and would need to scale up its operations very soon if it wants to take advantage of the situation.
The Ukraine Crisis:
The current quarter is one of low demand periods for the oil and gas sector. Companies like Petrotech Oil & Gas Inc (OTCMKTS:PTOG) are affected as the low demand translates into lower prices. However, the crisis in Ukraine appears to be stretching on. What started off as a conflict over Ukraine’s decision has now blown into something far bigger. Russia was always opposed to Ukraine’s European Union membership. The government appeased it by withdrawing its bid. But the citizens soon took to the streets and the government had to flee. The interim government has taken charge but Russia has upped the ante as Ukraine shares a common border with Russia and it would not like the European Union on its door step.
The crisis has the potential of disrupting the Russian oil flow to Europe. If that happens, the lean period may well be over for oil producers across the globe.
A Company In Transit:
Petrotech Oil & Gas Inc (OTCMKTS:PTOG) announced recently that it is setting up production units across one of its wells. The production reports are expected next week. If the crisis deepens, it can take advantage and sell its products at a high price. To do so, it will need to scale up its operations.
However, the company also seems to be venturing into unrelated businesses. There are many rumors floating around the internet that it plans to explore the medical and recreational marijuana field. While the segment is very hot now a day, the two businesses are totally unrelated. Marijuana business has picked up recently as marijuana sale has been permitted for recreational purposes across as many as 20 states and one district.
However, Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s supposed entry into unrelated businesses may be a cause of worry for serious investors.
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