Petro Vista Energy Corp. (CVE:PTV
) (PINK:PTVYF) share price continues to decrease as the impact of the recent subsidiary sale fades away and bears start to claw at the inflated stock.
PTV stock price lost another 18.8% on Monday, breaching the short term support at 7 cents per share. The accompanying trading volume was average, thus a more substantial sell-off might not happen despite the fact that support was taken out.
PTV share price had gone up significantly since the company finalized the sale of their subsidiary Petro Vista Energy Colombia Corp. to Deep Core Inc. as was announced on May 18. The company thus has no further interest or liabilities associated with Columbian operations.
Petro Vista now focused their attention to the Tartaruga field in Brazil in which they have the right to earn 37.5% working interest. That would depend on whether or not consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis approves this request.
The Petro Vista subsidiary was sold for mere $75 thousand, but considering it waved all the associated liabilities the business is still in a pretty good shape. The decision to sell was made after well cost increased from $8 million to $31 million and the company could not afford further development in their current situation.