NEW YORK (TheStreet) -- Shares of Emerald Oil (EOX) were surging, sharply up 15.36% to $6.01 on heavy volume in midday trading Wednesday, after the company elected not to proceed with its previously announced public offering of common stock.
The company pointed to the "current market environment and associated dilution to existing shareholders" for backing out from the equity issue.
Yesterday, Emerald shares sank more than 23% in the regular session after the company announced that it would issue its planned equity offering, but at a reduced size.
Following the negative investor reaction, Emerald's management scrapped its plans to issue equity.
About 5.87 million shares of Emerald have exchanged hands as of 11:43 a.m. ET today, compared to its average trading volume of about 364,558 shares a day.
Denver, Colo.-based Emerald is an independent exploration and production company that focuses on developing oil wells in the Williston Basin of North Dakota and Montana primarily targeting the Bakken and three forks shale oil formations.
The company operates about 64,000 net acres, or 75% of its total net acreage.
Separately, TheStreet Ratings team rates EMERALD OIL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMERALD OIL INC (EOX) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk."