About a month ago, we pointed out Century Petroleum Corp. (OTCMKTS: CYPE) as a reverse merger play that had taken off on the upside on huge volume. Then, we saw the stock go higher and eventually top out and recede without any further important updates on the process. Well, those looking for more guidance got it this week. Shares have ripped back higher as the company has hit the market with more information regarding the transaction.
To wit: the company just announced that there has been a change of control of the Company. As one may suspect there are several things going on with the Company. According to the release, “First and foremost, there has been a change of control to The Ibeto Group. The Company is in the process of auditing the past years of US operations and those of the target acquisition in Nigeria with full intention to file the Form 10 or S-1 registration statement just as soon as possible with the Securities and Exchange Commission.”
Century Petroleum Corp. (OTCMKTS: CYPE) had been operating as an oil and gas exploration company, marketing its services throughout the United States.
However, now this stock is going to represent share ownership of Ibeto Cement Company Limited, located in Bundu Ama, Port Harcourt, Rivers State of Nigeria.
According to provided materials, Ibeto began cement bagging operations at its bagging terminal in Port Harcourt in the year 2005. It is an ultra-modern bagging plant with a flat-storage capacity of 50,000 metric tons and a production capacity of 1,500,000 metric tons per annum, which translates to a production capacity of 4,000+ metric tons per day.
It has two (2) production lines, each with a capacity of 2,700 of 50kg bags per hour or designed total production capacity of 5,400 of 50kg bags per hour. It also has a third production line – popularly known as the “big/jumbo bag plant” – for big bags of 1,500 kilograms, and also fourth production line for bulk cement powder which is loaded on special cement trucks fitted with tanks and discharge pumps.
An integral part of the plant facility is a modern purpose-built jetty (Ibeto Jetty) that can take in ships of 190+ meters long with a sophisticated and state-of-art ship-unloaders and mounted at the waterfront on the Jetty to facilitate discharge of bulk cement from offshore/foreign mother vessels.
In line with the Nigerian Backward Integration Policy (BIP) on cement and in response to the Federal Government’s call to increase local production of cement, Ibeto Cement Company Limited acquired the premier Nigeria Cement Company Limited (Nigercem) which has a plant located in Nkalagu, Ebonyi State. The strategic acquisition of Nigercem is aimed at expediting Ibeto Cement’s local production of cement by resuscitating the Nigercem plant and developing the project, as a brand new dry process plant.
Additionally, the Ibeto Cement Company Limited is also developing another 6,000 Metric Tons Per Day (TPD) Cement plant at Cross River State/Abia State of Nigeria.
Recent action has seen 76% added to share values of the name over the past week of action, but this action is running counter to the larger trend in the name. What’s more, the listing has registered increased average transaction volume recently, with the past month seeing a bit less than 160% beyond its prior sustained average level.
Erroll A. Booker, the Chief Executive Officer of Century Petroleum Corp., stated, “I am extremely excited to take the reins. This is a team effort and now it is my turn to bring Ibeto Cement in Nigeria to the Company in America and that will be of great value for all our shareholders. I would ask all shareholders to be patient as we work through the complicated process which needs to be done correctly and takes time.”
Currently trading at a price per share of $0.16, CYPE is a total mystery as far as financials. This is a reverse merger play that now represents a formerly private Nigerian cement company, and we just don’t know what’s underneath the hood at this point. That said, we will update the story again soon as further details emerge.
Disclosure: we hold no position in $CYPE, either long or short, and we have not been compensated for this article.