Paxton Energy, Inc. (OTCBB: PXTE) shares zoomed 9.5% to 23 cents Monday morning, on word the Nevada-based energy turnaround company had made a significant acquisition. Volume for the stock was 34,800 shares, or nearly half its normal daily average.

Paxton announced that on Friday, April 29, it entered into an agreement to acquire Virgin Oil Company, Inc. of Louisiana. Under the terms of the Agreement, the shareholders of Virgin will receive 70,000,000 shares of Paxton common stock in exchange for all of the issued and outstanding shares of Virgin common stock.

The closing of the Agreement is subject to completion of a financing by Paxton, and approval of the Virgin bankruptcy judge, as Virgin is currently a debtor in possession under a Chapter 11 proceeding. Upon closing, Virgin will be a wholly-owned subsidiary of Paxton and Paxton anticipates changing its name to Virgin Oil Company, Inc.

Said Paxton CEO Charles F. Volk, Jr.,”We consider the merger with Virgin to be a great opportunity for Paxton’s shareholders.”

R. Fulton (Tony) Smith, Jr., Director, President and CEO of Virgin concurred, “This merger will allow Virgin to ramp up oil production from existing wells and move forward on plans for new well drilling while growing revenues and achieving profitability.”

Paxton engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Paxton’s strategy is to acquire cash flow producing properties with proven reserves, develop the fields by reworking existing wells and drilling new wells. Paxton was founded in 2004 and is based in Stateline, Nevada.