Danbury Soares CEO releases buy offer as 'fraud'

Oil and Natural Gas Company did not issue a purchase offer, Danbury Resources said in a previous press release.

DANBURY RESOURCES (DNR) - Gate Report CEO Chris Kendall said in a press release Monday that the oil and gas company has not issued a purchase offer.

Shares of Plano in Texas rose 46.7 percent to 33 cents.

Kendall told Bloomberg in a telephone interview that the press release appeared to be "completely fraudulent."

Asked if the company had received a purchase offer, Kendall said, "The company will release an announcement soon."

Like other oil companies, Danbury also suffered during the coronavirus epidemic as air travel declined and oil prices plummeted to unprecedented levels.

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The decline in oil prices was provoked by the coronavirus epidemic and the cessation of economic activity around the world, although it was fueled by the price war between Russia and Saudi Arabia, which ended up being one of the biggest supply brakes in history.

Earlier this month, Moody's Investors Service downgraded the potential of the Denbury Resource Deficiency Rating (PDR) from CA-PD to CA-PD.

"Moody's forecast that CA will lose to Danbury's CFR after defaulting on interest payments on June 30, reflects Moody's forecast that the company will default on its debt obligations and that the holders' recovery rates will be lower," Moody said. "Moody's believes Danbury has a volatile capital structure as a result of high leverage, limited options for refinancing debt, and a large interest expense burden."

In other oilfield news, GATE reports that Chevron (CVX) will buy Noble Energy (NBL) for $ 5 billion, the largest oil-patch tie after the coronavirus virus epidemic.

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