eik, my use of the term subsidiary is very likely mis-placed and I will try to claify below. My points are not directed to you alone but to the entire board. I would agree that the majority of the disagreements on this board have been the result of our lack of information. However, after 4 years of persistent communicating with the company by a group of Long DDers (headed by Velvet), a light-bulb was switched on in my mind during one of my own recent communications with the company which helps me see the nature of what Strat is doing.
Your statement is a good segway:
"next time could you ask Sam what legal document constitutes that Strat Nafta is Strat's "Russian subsidiary"? I don't think such a document exists"
1) Strat Petroleum Ltd. is a US corporation.
2) Strat Petroleum (Canada) Ltd. is a Canadian corporation.
From all appearances, both of these North American corporations would appear to be either dormant or dead. However, they are not. The truth is that they are the North American "agents" for what is going on in Russia. Strat's business that is being conducted in Russia is evolving in Russia not in North America. As such, in order for Sam to succeed in Russia, he is managing business activities in there according to the rules of the game in Russia. We on the other hand have been expecting Sam to be conducting his business activites in Russia according to the rules of the North American business game plan.
Neither of the two North American corporations are entitled to exist as legal entities in Russia. As such, in order for Strat to conduct business in Russia, it must do so through other means. Strata Nafta Ufa and Crude Awakening are legal business entities in Russian and are not entitled to exist as legal entities in the US or Canada. The nature of the relationship between these North American corporations and the Russian corporations is contractual based on Joint Venture agreements. Here is where the term subsidiary was mis-placed. As such, you are probably correct in that there will not be a legal document drafted in North America that indicates that either of these two Russian corporations are subsidiaries to the North American corporations.
When Sam started out on this journey, he only had the two North American corporations under which to conduct business. As such, he started out by executing his business plan according to how the game is played in North America, hence, many PRs were published and many phone conversations were had with shareholders who were persistent enough to keep communicating with him. This phase was the discovery phase where Sam had to get peoples attention in both North America and Russia to get financing. Phase two was when the total silence began once Sam was able to establish a legal business entity in Russia and strike a Joint Venture agreement with them. However, ever since then, he had no choice but to execute his business plan according to how the game is played in Russia.
It is evident that Sam made mistakes along the way. Every major business book I have read tell the tales of the world's most famous executives and businessmen and their failures, which, from where I am sitting, were part of how they eventually succeeded. If we take the time to understand that the business is being conducted in Russia according to the rules there, you will understand that Sam is obligated to keep the terms that he agreed upon with the Join Venture partners regarding how much information should be released to the public until the right time. Think of it this way, the secrecy around the latest Indiana Jones movie or the latest Harry Potter book is not just market hype. It is VERY neccessary to keep others from poaching, pirating or stealing business opportunities. I read that Russia is the most corrupt place in the world to conduct business.
Strat and its partners are keeping a very tight lid on things for a very good reason. The group of Long DDers are all to well aware of the failures, mistakes, misjudgements that Sam has made in the past 4 years. This only proves that there is a long line-up of people who would love to poach, pirate or steal the business opportunities in which Strat is engaged. Sam might not be regarded as the smartest business man according to North American standards, however, what keeps me hanging in is that Sam continues to tell me when I do eventually get him on the phone that he continues to look for financing as progress is being made in Russia. I either trust him or I don't. It's that simple. He has always been transparent with me and I don't call him a liar just becasue he is not willing to tell be his business secrets.
Sam will look into any and all financing opportunites that exist. This has been the source of many of his failues because the majority of visible financing opportunities are run by people looking to scam the customer. Sam has been burnt in these situations. What we have to realize is that just because Sam may fail 9 out of 10 times in securing a finacing deal does not neccessarily imply that the business activites in Russia--i.e., the processing of sludge, has not been making gains over the past several years. It makes our stomachs turn when we hear he is looking for financing under every rock because most of them are scams. However, what I have come to realize is that when he states that "failure is not an option", I know without a doubt that Sam is a true entrepeneur who will take risks that others won't.
Finally, did anyone else see the movie "The Astronaut Farmer"?I find a bit ironic is that most North Americans value those who are trail blazers, who stick their hands into rattlesnake pits in search of gold and gems, even those who die in the persuit of riches, glory or fame. So why should we beat Sam up for being one of these crazy men who will try anything and everything to succeed? Russia is a crazy place and you need to be a little crazy to play the game. Kind of like rugby.
