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I think comes Clovelly in June or July if that Barrel oil 80$ costs !!!
That would be the largest !!!
We are also currently in the process of finalizing a Management Services Agreement, and a Joint Venture agreement, and forming a separate Joint Venture company, which agreements and which Joint Venture company have not been finalized to date.
The important place is (bold) marks !!!
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On or about May 15, 2007, Texhoma Energy, Inc. (“we,” “us,” and the “Company”) entered into a Letter Agreement with Matrixx Resource Holdings Inc. (“Matrixx”) to sell its 11% working interest in the property known as the Clovelly Prospect (the “Clovelly Prospect”) for $150,000. In connection with and pursuant to the Letter Agreement, we expect to receive an earnest money deposit of $25,000 on or about May 25, 2007. The deposit is not refundable to Matrixx unless there are significant title defects in connection with the Clovelly Prospect which cannot be cured, regardless of whether Matrixx moves forward with the purchase.
--------------------------------------------------------------------------------
The Letter Agreement anticipates the closing the purchase of the Clovelly Prospect to close on or before June 30, 2007, at which time the remainder of the purchase price shall be paid by Matrixx. The effective date of the purchase will be May 22, 2007.
We are also currently in the process of finalizing a Management Services Agreement, and a Joint Venture agreement, and forming a separate Joint Venture company, which agreements and which Joint Venture company have not been finalized to date.
ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS
At a meeting of the Board of Directors of the Company on May 17, 2007, the Board of Directors appointed Frank Jacobs, the Company’s current Director and the former Chief Executive Officer and Executive Chairman of the Company, as Chief Executive Officer. Additionally at the meeting of the Board of Directors, the Directors recommended that William “Mike” Simmons be appointed as a Director of the Company to fill a vacancy on the Board, which appointment has not yet been accepted by Mr. Simmons as of the filing of this report.
William “Mike” Simmons, age 53, currently serves as the Chief Executive Officer and President of Valeska Energy Corp., which position he has held since June, 2006, and as President of Loosbrock Offshore International, Inc., which position he has held since April 1987, and which company is engaged in the offshore drilling industry as a consultant and broker. From June 2005 until May 2006, Mr. Simmons served as Senior Editor and leader of the energy group for Off The Record Research, LLC, a registered investment advisor and broker dealer firm.
Mr. Simmons obtained his Bachelors degree from Texas A&M University in College Station, Texas in Geography in 1980.
http://app.quotemedia.com/quotetools/showFiling.go?name=TEXHOMA%20ENERGY%20INC:%208-K,%20Sub-Doc%201...
We will see yet large of MXXR !!!
And then you can drink again the good beer, in Germany !!!
Perhaps MXXR buys, of Texhoma also the shares of Buck Snag and Manville !!!
Only my thoughts are that !!!
Here something to the participation of Texhoma !!!
Texhoma has at Buck Snag, 12.5%, Manvel 12.5% and Clovelly 0 00% !!!
Texhoma had at Clovelly only these 11% !!!
Sorry, I received the MAIL just of Konstantine !!!
Not I, but rather Konstantine, incorrectly formulated the MAIL !!!
Hello people, here a mail of MXXR with the assembly of the projects !!
I sent MXXR this MAIL !!!
Hello Konstantine,
Thank you very much for the Message !
Please can you announce to me, at which projects, you involved and with how much percent?
With the best greeting, a friend !
Günter ( OilDragon )
And this is the answer of MXXR!
Gunter,
Current projects are as follows:
Clovelly Prospect, Louisiana, (oil & gas) - original 5% working interest, optioned to 11% interest
Buck Snag Prospect, Texas, (oil & gas) – 42.5% working interest in the Buck Snag Field
Manville Prospects, Texas, (oil & gas) - 55% working interest in Manvell 2000 ft. Miocene Exploration and 55% working interest in the Manvel 4500 ft. Oakville Development
Hazard Lake Property, Ontario, (gold) – 98% aggregate interest.
Thank you,
Konstantine
PROJECTS of MXXR !!!
Bug Snag = 42.5, Manvile = 45% and Clovelly 16 or 27% !!!
It will be convicted !!! for it is a Short Seller how you !!!
I write each MAIL friendlily and no REFUSE as well as STINKIWINKIE !!!
I wrote MXXR this MAIL !!! And this is the answer !!!
Hello Konstantine,
Messages must come soon!
The stockholders wait for messages when what is made!
With the best greeting, a friend !
Günter ( OilDragon )
--------------------------------------------------------------
The answer !!
Hello Gunter,
I trust you are well.
I have just finished a brief conversation with John and upon his return from Houston today I can pass on to you and update regarding Clovelly and some new developments that will be of interest to you all in Germany. Most like I will touch base with you after this weekend.
I appreciate that all investors are becoming more impatient as time goes on without any drilling operations beginning and the stock price languishing below the penny level. Kindly realize management cannot address the stock issue at this time without first addressing the business side first. This is a big cause delaying operations (due in part to the changing positions of private stakeholders) though I believe they are getting close to resolving most issues so they can proceed with business as usual.
I hope, as mentioned, to have a full update myself this weekend so I can pass on to you and other shareholders after that time.
Best Regards,
Konstantine
train, I think the same like you !!!
Next week the time of the messages will be !!!
If that with the 11% is clarified, MXXR will take the other projects in attack !!!
SORRY, Yes pinkywinkie and others, are ringer for stockscam !!!!!
Friends are that or worker of Hartley Bernstein !!!!
Yes pinkywinkie and others, are Läuter for stockscam !!!!!
Friends are that or worker of Hartley Bernstein !!!!
These Short Seller, want to earn the large money at MXXR !!!
SORRY, I write in bad English, and others write only RUBBISH !!!
I write the truth, and others write only lie over MXXR !!!
With kind regards,
Günter ( OilDragon )
If MXXR a RIVET is, why becomes, in so LARGE HANDLE, SHORT SELLING against MXXR made ???
First think then POST !!!!
Another LINK to Hartley Bernstein (shorten Seller) (StockPatrol. com) !!!
http://www.stockmarketpr.com/
What Smells in the Stock Patrol.com Doghouse run by ex-con Hartley Bernstein?
http://www.pressbox.com/detailed/Financial/What_Smells_in_the_Stock_Patrol.com_Doghouse_run_by_ex-co...
Added: (Mon Feb 19 2007)
It must be the Watchdog himself, Hartley Bernstein!
(Uncovering the shrewdest stock manipulator in America, part II)
Only Hartley Bernstein, president and editor of a handful of websites dedicated to disclosing suspected wrong doings by publicly traded companies, really knows for sure.
Since July 1999, Stock Patrol.com and other reporting services under the same umbrella such as Radar’s Doghouse and The Stock Watchdog, have been providing an inside view of Wall Street, with detailed reports on public companies, brokerage firms, and regulatory developments. Their mission? To help investors navigate their way through the securities markets and the financial industry.
Is this the true picture?
We think not! In May of 1999 Mr. Bernstein pleaded guilty to securities fraud, conspiracy and perjury, and agreed to forfeit US$850,000 in profits. He then decided to turn over a new leaf and be one of the good guys. A good guy? If the definition of being a good guy is being the shrewd manipulative mastermind of a suspected illegal short selling group, then he has succeeded.
The now disbarred attorney, Mr. Bernstein, is so shrewd and convincing that even market regulators, who are some his most faithful readers, have fallen for his scheming ways. Dozens of companies that have been profiled on Mr. Bernstein’s syndicate of reporting services have been seriously hurt by unsubstantiated negative connotations promoted by the reports. Could it be that Mr. Bernstein has developed a syndicate of reporting services just to influence the market? Mr. Bernstein’s syndicate has a large following that can be very easily influenced by bad news. It’s nice to have that kind of power especially when you have the kind of knowledge about the public markets that Mr. Bernstein has. Has he really turned the corner or is he undermining the markets by releasing detrimental news about publicly traded companies just to take advantage of the short selling opportunity.
One person who second-guessed Mr. Bernstein’s turnaround was Richard D. Owens, the assistant US attorney who prosecuted Bernstein. Mr. Owens stated at the hearings that when Bernstein first came to the government, "we, of course, raised our eyebrows a bit." And no wonder. Owens knew that operating "fraud detection" sites such as StockPatrol.com, Radar’s Doghouse or The Stock Watchdog is hardly an untainted concept. One effort, StockDetective.com, founded after its parent company was found by federal prosecutors to have been the target of a stock manipulation scheme. And also, a stock adviser, Amr Ibrahim Elgindy -- whose Web sites, insidetruth.com and anthonypacific.com, promised to expose penny-stock schemes -- was indicted in Brooklyn on federal charges of operating a stock manipulation and extortion racket.
Isn’t it Obvious?
How does one afford to live a lavish lifestyle and own an eight-room Georgian-style apartment on Park Avenue in Manhattan, just from the goodness of your heart? It’s quite obvious you can’t. It takes a lot of money to be able to afford that type of lifestyle, and the suspicion is that Mr. Bernstein is making his money off of unsophisticated investors playing the market long. “ONLY IN AMERICA”!! as Don King
stated.
The proofs against Hartley Bernstein (Stockpatrol com) are enormous !!!
Hartley Bernstein “Stock or Schlock”, or possibly one of the most sophisticated naked short selling
Added: (Mon Feb 19 2007)
What kind of an individual would choose a name like “Stock or Schlock” for their analyst report on publicly traded companies? Certainly, Stock or Schlock would not be the choice of a reputable stock analyst whose work is based on facts and solid analysis.
Indeed, the name Stock or Schlock was chosen by a disbarred New York attorney, who was also convicted in the U.S. Federal Court on the charges of stock fraud and perjury. His name is Hartley Bernstein.
Stock or Schlock had to be chosen for a specific purpose. Because any company, regardless of the analysis that Mr. Bernstein puts out, is automatically tainted for simply being mentioned there.
Mr. Bernstein actually operates a little syndicate of websites and newsletters such as, StockPatrol.com, Radar’s Doghouse, Buyer Be Wary, Stock Watchdog, and others.
But this is not about silly names, this is about making big money selling short.
Mr. Bernstein operates all his websites “voluntarily”, meaning that he is donating his full time and money to finding supposedly questionable companies to help other investors who are speculating in the market.
On the surface, Mr. Bernstein alleges that he is using the knowledge that he acquired during his criminal days for the benefit of the ignorant public investors.
In his reports Mr. Bernstein loves to use certain buzzwords like “pump and dump”, where no pump and dump is present. On some occasions he even writes about naked short selling supposedly by the companies themselves. That is utterly illogical. No company benefits from destroying itself.
Just the sound of the words pump and dump and similar unsubstantiated parses that convey the implication of stock manipulation attaches a stigma to the targeted company.
Something’s afoot here. The only practical effect that Mr. Bernstein’s syndicate of websites and newsletters has on the market is to frighten investors away from buying shares in certain publicly traded companies.
And if you can control the trading, or more precisely stifle the buying side, you have a perfect way to make money selling short.
What is Selling Short?
"Selling short" is how you profit from a fall in the stock price. In a typical stock trade you want to buy low and sell high, of course. When it comes to short selling stocks, it's the same thing done in the opposite order... you actually sell high first (stock that you don’t own) and hope to buy back an equal number of shares at a lower price later, to close out your trade.
Now, picking individual company stocks for short selling is tricky business, and you can incur tremendous losses if the stock starts going up.
Except that there wouldn’t be any risk to selling short for Mr. Bernstein and his shadowing followers, because the simple mentioning of anything negative by Mr. Bernstein starts a declining trend in the stock of the companies that he targets. And if Mr. Bernstein gets lucky and induces the SEC to investigate some of his targeted companies… so much the better.
Who stands to benefit from tilting the playing field down?
The targeted companies and their management cannot profit from their stock that is dropping. Investors cannot win. Even market speculators can get hurt.
It looks like Mr. Bernstein is the only one who is in the catbird position to profit safely. And why wouldn’t he? Everyone in the stock market looks to profit. That is only normal!
Yet, Mr. Bernstein seemingly provides gratuitous voluntary public service, with no visible benefit to himself, to stock traders, out of all people! It is more realistic that Mr. Bernstein is in the business of serving his own interests.
Selling short requires more sophistication than doing long transactions. It is almost funny that, prior to being convicted, Mr. Bernstein had an advantage of selling on the long side of the stock market. Now he has a distinct advantage of selling on the short side of the market.
Small publicly traded companies have a hard enough time as it is in the marketplace, without being victimized by those who have the sophistication to sell short their fragile stock. It is time for the SEC to look into Mr. Bernstein’s broader activities. The SEC may be surprised as to what they find.
Here yet more proofs against Stockpatrol. com !!!
http://shortsellingmanipulation.blogspot DOT com/2007/02/stock-patrolcom-boss-hartley-bernstein.html
Saturday, February 3, 2007
Stock Patrol.com Boss Hartley Bernstein, sanitizes the internet.
Mighty Google, Yahoo, America Online, MSN and Excite, who would have thought it! In an unprecedented show of manipulative savvy Stock Patrol has successfully sanitized the internet.
We were following a number of news articles on Google, Yahoo, America Online, MSN and Excite which raised concerns that Stock Patrol.com, the popular website that reports negative news about small cap companies, may itself be behind a major short selling scheme.
One of those articles “Stock Patrol Suspected as a Front in a Short-selling Scam” presented a comprehensive overview and went into quite some detail, describing how the short selling system is suspected to work and the pivotal role that Stock Patrol allegedly plays.
A contention of the article was that it looks strange for Hartley Bernstein an ex stock manipulator to be working so hard without compensation to write negative reports about small cap companies, reports which the article claimed were unsubstantiated innuendoes, and that Hartley’s criminal background has to be considered under the circumstances.
We knew that Hartley had a conviction of stock manipulation but we were skeptical about the shorting scheme because of its shear magnitude and daring. It sounded too far fetched and sophisticated.
Yesterday, we went back to Google, Yahoo, America Online, MSN and Excite to look if there were any other articles. To our surprise, all previous articles about Stock Patrol’s alleged shorting of stocks were gone from the internet!
We searched for references that would link Stock Patrol to short selling, but all the information on that subject had been scrubbed from Google, Yahoo, America Online, MSN and Excite.
We are disappointed about this Internet manipulation. It gives credence to the allegations in the deleted articles, at least that Mr. Bernstein sill is a manipulator.
We are wondering why Mr. Bernstein was so afraid, that he went to great lengths to delete those articles from Google, Yahoo, America Online, MSN and Excite? Sanitizing a major search engine is no simple job.
Does Google, Yahoo, America Online, MSN and Excite have anything to say?
Stockpatrol. com is not clean !!! Here the proof is !!!
http://www.stockhouse DOT com/bullboards/viewmessage.asp?no=14216249&tableid=1
Home > Stock Patrol Suspected as a Front in a Short-selling Scam
There is a company out there called StockPatrol.com which publishes a website that many investors rely on. StockPatrol acts as watchdog warning investors of allegedly bad publicly traded companies. But things may not be what they seem.
(I-Newswire) - There is a company out there called StockPatrol.com which publishes a website that many investors rely on. StockPatrol acts as watchdog warning investors of allegedly bad publicly traded companies. But things may not be what they seem.
Analysts are looking at a correlation between StockPatrol’s negative reporting and waves of short-selling. What they find interesting is that there seems to be a certain pattern.
This is how the short-selling scam is suspected to work.
Selling often starts shortly before StockPatrol puts out its negative report – while a company’s stock price is still high. This brings an amount of money into the sellers’ accounts.
When StockPatrol releases its negative report, it initiates a downward momentum. The short-sellers continue to sell, reinforcing the downward trend and in the process bring in additional money.
As the panicked shareholders of the affected company try to get out of the declining stock, the stock tumbles, at which point the short-sellers quietly start buying the necessary amount of stock back to cover their short positions at a fraction of their original price.
The difference they keep as their profit. Obviously, the affected company, its management and shareholders don’t benefit from this. They are the losers.
The money the short-sellers can make on the backs of small company investors must be significant, considering that StockPatrol deals in low priced stocks where even small changes in price represent a large percentage change. Further, StockPatrol has to be aware that through its negative reporting it is actually sabotaging small company prospects, thus removing risk from shorting those companies.
An ingenious modus operandi – assured money making mechanism that is virtually risk-less.
Operating out of his multi-million dollar five bedroom apartment in midtown Manhattan with one bedroom dedicated to the StockPatrol, its sole operator, Mr. Hartley Bernstein receives no compensation for his work and dedicates his time and own money purely for the social cause of being a self-appointed watchdog of the securities markets.
StockPatrol states that its mission is to inquire, investigate, research and report on interesting, odd and unusual developments in the securities markets.
Upon closer look however, StockPatrol’s reports amount to clever derogatory innuendoes by Mr. Bernstein. He gives them a particular kind of spin. But these aren’t simply inconsequential private opinions. Mr. Bernstein has built a following and, when he makes an innuendo to bash a company, he knows it is bound to produce a negative market response.
StockPatrol does a lot of reporting. But it appears that Mr. Bernstein has never bothered to substantiate his innuendoes and has never contacted the firms he attacks. In fact, when one brave company challenged him for a public debate he simply disappeared.
Obviously, Mr. Bernstein wouldn’t be shorting himself. Shorting would have to be done through untraceable off-shore accounts and by remote parties without a direct connection to him.
But there must be one connection. Short-sellers somehow happen to know ahead of time on which companies StockPatrol is going to issue its reports. Is it a mere coincidence, or is there a friendly leak at StockPatrol?
Ingenious as it may be, shorting small cap stocks is not only wrong it is actually illegal, especially on a downward trend!
As it turns out, Mr. Bernstein actually has a background in securities scheming, deceit and lying – even perjuring himself in Court. He is no stranger to law breaking.
Mr. Hartley Bernstein is a disbarred New York attorney. He is also a convicted felon. Mr. Bernstein was found guilty of stock fraud and perjury at the U.S. District Court in New York. If you want to spend $25 you can download the indictment and conviction details.
As in organized crime cases, in this case the government used Mr. Bernstein as one of the key figures to convict the others. In exchange for his testimony against his buddies in crime, Mr. Bernstein bargained for himself a lighter sentence.
Mr. Bernstein apparently claims that he is reformed now. Notwithstanding, his background must be considered. According to a New York Times article a few years ago on Mr. Bernstein’s past, some regulators are skeptical and believe that recidivism with this type of crime is standard.
It does look odd that Mr. Bernstein is running StockPatrol – it’s like having a convicted bank robber manage a bank or having and ex child molester work in an elementary school.
Mr. Bernstein has the audacity to make up unsubstantiated innuendoes giving them his typical spin that portrays business people building companies as being somehow crooked. In reality, the crooks by enlarge come from the securities industry victimizing companies for their ends.
At a minimum, Mr. Bernstein, as well as the regulators who permit him to go on, must realize that they are responsible for effectively depressing the stock of the small companies that Mr. Bernstein denigrates through his innuendo reporting.
Don’t these small firms deserve government protection against such attacks by a convicted felon?
While there inevitably must be bad apples among small cap companies, as there are among large companies, it does not appear that the majority of the firms that Mr. Bernstein attacks have done anything wrong.
If there is any wrongdoing by the companies that Mr. Bernstein has been allowed to slander, then regulators should charge those companies. But that is not the case.
A question has to be asked, are regulators looking the other way when it comes to wrongdoing by Mr. Bernstein? If so, what is the rationale? The word on the Street is that certain regulators value Mr. Bernstein and have allowed him to carry on with his innuendo reporting “for prophylactic reasons” to keep small companies in check, so to speak.
If there is truth to this, this would bring into question the regulators’ ethics and wisdom.
What is happening is that Mr. Bernstein, acting as a quasi-governmental representative, is harming legitimate small business, undermining capital formation at the grassroots level and affecting the integrity of the small cap market. He should be investigated.
Understandably, for the regulators securing actionable evidence against someone skillful like Mr. Bernstein may not be so easy the second time around and he may represent an embarrassment. There may be however grounds for civil action by the affected companies.
Investors and executives of affected companies have been wondering for some time now whether Mr. Bernstein is just an overzealous man who acts for no other reason but to selflessly protect the investing public’s interests, or if there is a more practical side to this – Whether there is basis to suspicions that StockPatrol and its related outlets ( Stock Watchdog, Radar’s Doghouse, Stock or Schlock, The Radar Screen, Buyer Be Weary, Know Your Broker, Regulations on Patrol ) are a front for one of the biggest short-selling scams in the small cap market.
What is even more disconcerting is that everybody is afraid to talk about Mr. Bernstein out of fear of retaliation. Even news reporters are shy to explore legitimate concerns regarding Mr. Bernstein.
http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/572/Default.aspx
A Tale Of Two Justice Systems - Or Why I Stopped Worrying And Learned To Love Kleptocracy
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 2/14/2007 8:30 AM
Yet another blow has been dealt against any quaint notions of fair play or honesty in the markets.
What do I mean?
Well, today the SEC announced that it has dropped its investigation into Gradient Analytics, the research firm accused by a number of companies (most of which are still on the Reg SHO list, for years) of participating in a scheme to damage companies targeted by a cabal of short sellers.
This shut-down of the "investigation" should surprise no one.
Why? Well, this is the same SEC accused by the Senate Judiciary's two most aggressive members of either being grossly incompetent, or participating in a cover-up, and obstructing justice. Not years ago, but weeks ago, in oral statements, and in a preliminary report that would have been impeachment material only recently. This, after the Judiciary Committee's research into the SEC's unbelievable handling of the Pequot insider trading "investigation" and subsequent elimination of the lead investigator, and ensuing cover-up, painted a picture of an agency dangerously out of control.
This would be the same SEC which chose in its wisdom not to take the testimony of the critical witness in that case until after the statute of limitations had run out. Which decided to fire its chief investigator in that case rather than allow him to investigate a Wall Street icon. Which predictably found no evidence of insider trading in a case with 18 separate referrals from SROs indicating unmistakably suspicious activity. The SEC which apparently was able to ignore Senator Specter's hearing on insider trading and its insidious and pervasive impact on our public markets (which received ZERO coverage by the NY financial press...) - that darned SEC just can't figure out who is doing all that insider trading, but God help you if you are an investigator staring at the only guy wearing a bull's-eye...
So why would it surprise anyone that the same SEC that issued subpoenas to journalists allegedly involved in the manipulation scheme would drop its investigation? And why would it surprise anyone that the same media personalities named in the subpoenas would be trumpeting the SEC walking off the field?
That would be the same SEC that quashed the subpoenas moments after they were issued, and basically refused to gather the evidence that would implicate or clear the journalists. That took days of eyewitness testimony and apparently decided that the allegations of systematic, collusive, and pre-meditated manipulation didn't merit serious consideration.
The same SEC that fired Aguirre when he took steps to box in the person he placed as the likely insider trader - effectively removing the only impartial investigator in the Pequot case, which was then whitewashed and dropped in the same manner as the Gradient case. The same SEC whose San Francisco head of investigations, who cleared and issued the subpoenas to the journalists in the Gradient case, suddenly received a dream job offer for huge money and indeterminate duties (mere days after issuing the subpoenas), out of the blue, from an investigation firm implicated as connected to the miscreants - effectively removing the driving force in the Gradient investigation.
The same SEC who, when "investigating" the Aguirre firing matter, examined exactly none of the evidence collected by the man, and took no testimony from anyone but those involved in firing him, and which was then publicly humiliated and chastised when its own personnel contradicted its official position that there was no there there in Aguirre's charges of cover-up.
We know all these things. They are all verifiable. The same reporters who were subpoenaed studiously avoided reporting ANY of it, but we know about it due to coverage of the hearings, and a few non-NY reporters.
Cramer wiped his bottom with his subpoena. He understood at the time that it was a farce, and that big Wall Street interests would remove the irritation of the SEC bothering Wall Street's chosen few. Few of us watched that display and didn't understand the implications. One would have to be blind not to.
So, what do you do when your cops are proved absolutely corrupt, and in the pocket of the miscreants they are chartered with policing?
Well, I suppose if you are a complicit financial journalist, you NEVER report any of the stories wherein the SEC is shown to be corrupt, or the naked shorting problem is shown to be a deci, if not centi, billion dollar problem, and instead, hear no evil and see no evil - remember, your readers are idiots, and they will only remember whatever you state is the truth of the day.
That is a good start. A safe position. Just pretend not to know anything that threatens your position that all is well, and act only guided by your own self-interest.
If you are an SEC official, you continue to twist the truth, mislead Congress, and do your best work to run interference for Wall Street.
If you are a miscreant, you smile as folks rail at the gross injustice of companies on the SHO list for over two years, or massive and obvious ongoing manipulation, and you just keep on looting the financial system. After all, nobody said life was fair. Somebody has to steal everything that isn't bolted down. If not you, someone else.
As an aside, the miscreants always believe they are the smartest guys in the room, from what I can tell, which ignores that if you are a criminal, engaging in criminal behavior, whose edge consists of buying the authorities and robbing investors blind, you don't have to be very smart at all. Not even very subtle. You just have to own the cops, and be able to keep suckering in new rubes to rob - which the average Times Square 3-card Monty huckster can do nicely. It really doesn't require intellect as much as it does connections and a larcenous streak as wide as the Hudson.
So what does one do now? Well, clearly expecting the SEC to do anything that runs counter to the interests of the miscreants is silly. I would argue for decades they have been nothing more than a private police force for the Wall Street mob. When Milken was eating entrenched Wall Street's lunch, a series of blind tips mysteriously came about, and, gasp, imagine, he was involved in stock parking, insider trading, etc. etc. etc. A suddenly galvanized and motivated NY DA, and SEC staff chomping at the bit, sprang into action. Things that everyone knew were ubiquitous practice on Wall Street, just as insider trading and bear raids are understood to be ubiquitous today, suddenly became a big focus. And yet the only guy they could nail was the one taking the big IB money away from the entrenched power houses.
How convenient for Wall Street, and inconvenient for the new upstart. Was he a bad man doing bad things? Sure. Any worse than any of his peers? Arguably not. Arguably just part of the status quo. Same miscreants ruining the markets today, but much more monolithically, and thus far less chance of a rogue upstart coming in and taking one's established book of business. Much tidier for everyone.
When we see any enforcement actions these days, it is always fringe players. We never see the obvious investigated. We never see the SEC ask, "Why has this handful of companies, all targeted by the same cartel of miscreants, all the beneficiaries of "research reports" by the same "research groups", all negatively mentioned by the same dozen reporters, all been on the SHO list of companies with a large naked shorting problem, EVER SINCE THE GD LIST CAME OUT?"
Nope. Tut tut. None of that.
If only there was a sign....
No, instead we have investigators removed by hook or crook, evidence ignored, and even in the face of Congressional accusations of colossal and endemic corruption, business as usual at the SEC.
Why not? It pays great. Nobody ever does anything to stop it. The rubes keep lining up to hand over their money.
It's a great gig, just as being in charge of the black market in most of the rest of the world is a great gig. One owns the authorities, makes a fortune at the expense of any productive members of society, endangers whole systems of creativity and enlightenment in exchange for immediate illicit gratification, and does so with impunity, fearing only opposing warlords, or competitors with more "juice."
Sound familiar?
whatsinit give me your mail address, send I the mail at you further !!!
This is the answer of MXXR on this LINK !!!
Gunter,
People across America have figured out this guy and his webpage. He is under investigation for market manipulation. He was a former securities attorney in a prior life before being convicted of fraud and stock manipulation. He was forced to pay back all the money. Now the guy claims to have no job and works for the investing public for free from his expensive New York city condo.
It appears he shorts stocks, then sends out a bit of spam, then puts out a press release that the company is spamming. Then people sell and he buys to cover. Nice racket he has going. But a lot of people have caught on to his nonsense and he is subject to investigation it seems.
John
This is the answer of MXXR on this LINK !!!
Gunter,
People across America have figured out this guy and his webpage. He is under investigation for market manipulation. He was a former securities attorney in a prior life before being convicted of fraud and stock manipulation. He was forced to pay back all the money. Now the guy claims to have no job and works for the investing public for free from his expensive New York city condo.
It appears he shorts stocks, then sends out a bit of spam, then puts out a press release that the company is spamming. Then people sell and he buys to cover. Nice racket he has going. But a lot of people have caught on to his nonsense and he is subject to investigation it seems.
John
This is the answer of MXXR on this LINK !!!
You are the largest brain in this BOARD !!!
Gunter,
People across America have figured out this guy and his webpage. He is under investigation for market manipulation. He was a former securities attorney in a prior life before being convicted of fraud and stock manipulation. He was forced to pay back all the money. Now the guy claims to have no job and works for the investing public for free from his expensive New York city condo.
It appears he shorts stocks, then sends out a bit of spam, then puts out a press release that the company is spamming. Then people sell and he buys to cover. Nice racket he has going. But a lot of people have caught on to his nonsense and he is subject to investigation it seems.
John
Thank you very much Gary ( eglfsucks ) !!!
Hello eglfsucks, What did John say ???
Hello eglfsucks,
John have been at ORX’s office this morning regarding Clovelly !!!
Here the answer of MXXR on my mails !!! Today !!!
Gunter,
You sent 9 emails so far today. It is only 11 am here in Louisiana. I cannot take too much time here, I have been at ORX’s office this morning regarding Clovelly. I have to visit later with someone from there that I was unable to see yet so far today, so I must go soon. But if you read the filings you will see that Kuma has been loaning the company some money to pay for drilling. They have got 10% interest in stock and the loan is to be paid back in 2 ½ years (basically 1 ½ years from today as it is about 1 year into it). There is some dilution as in the 10% of the loan amount. As far as what I am working on here in Louisiana there is a lot more than just Clovelly and it just takes a bit of time, but it will all come together and it will make sense. But information will become more forthcoming as things are on a roll again. They will be announced in part, but the picture in its entirety will become much clearer.
John
I wrote MXXR this mail !!!
Hello Konstantine,
All stockholders ask themselves the same questions!
We have the "+11% Clovelly News", but we still don't know how MXXR will pay for that additional interest.
If MXXR has a loan, that would be huge news, because it would mean the lender belives in Clovelly's success.
If MXXR pays with shares or convertible, we just need to know how many and at what PPS.
From where MXXR has the money, for that 11% at Clovelly!
Why does the course fell and climbs not?
If soon News do not come, the course goes into the cellar!
We also wait for Drilling News, here.
With the best greeting, a friend !
Günter ( OilDragon )
If Clovelly success has, no one becomes more of this bad 10Q speaking !!!
And Clovelly will have success "the dead live more long" !!!
Clovelly will have success !!!
Should Clovelly success have, no one becomes more of this bad 10Q reports !!!
Form 10QSB for MATRIXX RESOURCE HOLDINGS, INC.
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21-May-2007
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, INCLUDING, WITHOUT LIMITATION, STATEMENTS REGARDING THE COMPANY'S EXPECTATIONS, BELIEFS, INTENTIONS OR FUTURE STRATEGIES THAT ARE SIGNIFIED BY THE WORDS "EXPECTS", "ANTICIPATES", "INTENDS", "BELIEVES", OR SIMILAR LANGUAGE. THESE FORWARD-LOOKING STATEMENTS INVOLVE RISKS, UNCERTAINTIES AND OTHER FACTORS. ALL FORWARD- -LOOKING STATEMENTS INCLUDED IN THIS DOCUMENT ARE BASED ON INFORMATION AVAILABLE TO THE COMPANY ON THE DATE HEREOF AND SPEAK ONLY AS OF THE DATE HEREOF. THE FACTORS DISCUSSED BELOW UNDER "FORWARD-LOOKING STATEMENTS" AND ELSEWHERE IN THIS QUARTERLY REPORT ON FORM 10-QSB AND IN THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2006, ARE AMONG THOSE FACTORS THAT IN SOME CASES HAVE AFFECTED THE COMPANY'S RESULTS AND COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
The following discussion should be read in conjunction with the condensed financial statements and notes thereto.
PLAN OF OPERATION
BACKGROUND
The Company emerged from bankruptcy in 1999 as Erly Industries, Inc. For the past seven years, the Company has been engaged in a series of transactions and restructurings designed to acquire assets or an existing business.
The Company's search for an operating business or assets for acquisition was facilitated in September 2004 by the consummation of a significant investment in the Company by a strategic partner. On September 14, 2004, the Company executed a Stock Purchase Agreement (the "SPA") with GarcyCo Capital Corp. ("GCCC"). The SPA called for the issuance by the Company of an aggregate of 400,000 shares of Common Stock to GCCC in consideration of the payment of $500,000 in cash. The Company was to receive the funds in $50,000 increments each quarter, beginning October 15, 2004. As part of the consideration for the SPA, GCCC was given the right to elect one Board member and agreed to retain Catherine Thompson and Michael Avatar on the Board of Directors and as consultants through December 31, 2007. To date, GCCC has not elected a representative to the Board of Directors of Matrixx. As of July 18, 2006, GCCC completed its obligation to deliver an aggregate of $500,000 in financing to the Company. The Company effected a 1 for 500 reverse stock split to all shareholders of record as of October 15, 2004. The reverse stock split was designed to facilitate the Company's acquisition strategy.
In December 2004, the Company entered into an Agreement and Plan of Reorganization (the "GCCC Agreement") with GCCC. The GCCC Agreement provided that the Company would acquire from GCCC certain property and businesses to be located by GCCC over a period of two years and in consideration, GCCC would receive 12,500,000 shares of the Company's Common Stock which was to be used for the purposes of acquiring other businesses and assets as identified by GCCC and the Company. The two year time period lapsed in December 2006 and only 4,000,000 of the 12,500,000 shares were utilized for acquisitions. GCCC returned the remaining 8,500,000 shares to the Company, and those shares have been cancelled.
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The GCCC Agreement also required the Company to issue to GCCC100 shares of the Company's Series A Convertible Preferred Stock and 100 shares of Series B ConvertiblePreferred Stock. The Series A Convertible Preferred Stock is convertible into 50.1% of Matrixx's Common Stock at the time of conversion, which is determined at the sole discretion of GCCC. The Series A Convertible Preferred Stock has one vote per share. The Series B Convertible Preferred Stock is convertible into shares of Common Stock at a ratio of 1 for 1, and the time of conversion shall be determined at the sole discretion of GCCC. Each share of Series B Convertible Preferred Stock is entitled to 1,000,000 votes until such shares are converted into Common Stock.
The Company's current strategy is to target acquisition and investment opportunities in the oil and gas and natural resource exploration industries. The Company is developing a program for investments in the oil and gas industry which will allow the Company to grow responsibly by contributing to assets with diversification to help mitigate the industry-associated risk. The Company's philosophy is to take small interests in relatively low risk opportunities. However, the Company may elect to accept a larger interest when the cost / benefit or cost/risk ratio is perceived to be very low. Management is not experienced in this industry and as such relies upon consultants and partners to bring proposals and to assist with investment decisions. The Company attempts to minimize risk by working with experienced and reputable partners and operators, considering factors such as success rates, experience with certain types of wells, and the cash flow sources of the Company's partners . The Company must also evaluate deal structure for fit with the current portfolio demands and its ability to raise financing. Lastly, the Company also analyzes property specific details such as the type of well, the target depth to be drilled, the field location and proximity of other wells, and if reserves or fields are proven.
The Company's entry into the oil and gas and natural resource exploration business began on July 14, 2006 with the final approval and closing of the Company's purchase of a 98% interest in the Hazard Lake Property, a 355-hectare gold mining property in the Red Lake District in Ontario, Canada and its purchase of a five percent interest in the Clovelly Prospect, an oil and gas property in the Lafourche Parish, Louisiana.
Acquisitions and Investments
Hazard Lake Property. On October 10, 2005, the Company executed a Purchase Agreement (the "Hazard Agreement") with Overseas Investment Banking Alliance, S.A., a Panamanian corporation ("Overseas"), for the purchase of Overseas' 98% interest in the Hazard Lake Property in Ontario, Canada. The Hazard Lake Property is valued at $397,000, net of impairment costs of $600,000 recognized at June 30, 2006.
Clovelly Prospect. On November 15, 2005, the Company executed a Letter Agreement (the "Letter Agreement") with Sterling Grant Capital Inc. (formerly Sun Oil and Gas Corp.) to purchase a 5% minority interest in an oilprospect property. The property is the Clovelly Prospect which is located in southeast Louisiana in the Lafourche Parish.
Buck Snag Field. On August 28, 2006, the Company entered into an Acquisition and Participation Agreement ("Buck Snag Agreement") for the acquisition of a 42.5% working interest in the Buck Snag Field ("Buck Snag") from Texahoma Energy, Inc. (Pink Sheets: TXHE), a Nevada corporation ("Texhoma") , for a purchase price of $150,000. The Company's payment of $150,000 to Texhoma was for an initial 57.5% participation in Buck Snag but subsequently the Company agreed to convey 15% of its participation as partial payment for a 10% participation in the Sandy Point Prospect.
The Buck Snag Prospect covers approximately 280 acres of land in Colorado County, Texas. The
Schiurring #1 well on Buck Snag was completed in the 2,030 foot sand and placed into productionon August 24, 2006. Subsequently, the Schiurring #1 well developed mechanical problems allowing excess water into the well and rendering it difficult to maintain production. The operator, the Company, and the partners have agreed to plug and abandon the Schiurring #1 well.
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The Schiurring #2 well was completed on December 8, 2006. Due to similar problems encountered as with Schiurring #1, the well is to be re-completed with the anticipation of perforating and producing from the 3,500 foot and the 2,000 foot sands.
Manvel Prospects. On October 5, 2006, the Company finalized an Acquisition and Participation Agreement with Texhoma for the acquisition of a majority working interest in two wells located in Brazoria County, Texas (the "Manvel Agreement"). Pursuant to the terms of the Manvel Agreement, the Company received a 55% working interest in the Manvel 2,000 ft. Miocene Exploration prospect ("Miocene Prospect") for $20,000 and a 55% working interest in the Manvel 4,500 ft. Oakville Development well ("Oakville Prospect") for $40,000, (collectively, "Manvel Prospects").
Subsequently the Company has agreed to convey 10% of its participation in the Manvel properties as partial payment for a 10% participation in the Sandy Point Prospect (see below) the Company's reducing its working interest in the Manvel properties to 45%.
Sandy Point Prospect. On November 16, 2006, the Company finalized the terms of an agreement with Texhoma and Sunray to acquire a 10% working interest in the Sandy Point Prospect for an aggregate amount of $35,929. The participation fee is to be paid through a conveyance of 15% of the Company's participation in Buck Snag valued at $22,500;10% participation in the Manvel properties valued at $6,000; and $7,429 in cash. The Company's initial participation in Buck Snag was 57.5%, which was decreased to 42.5% as described above. Additionally, the Company's initial 55% participation in each of the Manvel Prospects has been decreased to 45%. The remaining terms of the Buck Snag and Manvel Agreements were not altered. The Fite #3 well completed drilling in April 2007 to the Frio sands, but logs found no evidence for the potential of oil or gas in the sands. The Fite #3 well will be plugged and abandoned.
See "Liquidity and Capital Resources" below for a discussion of costs in connection with these projects.
RESULTS OF OPERATIONS
The Three and Nine MonthsEnded March 31, 2007 Compared To The Three and Nine Months Ended March 31, 2006
Revenues. The Company received $3,846 in revenue from its interests in oil and gas properties during the nine-month period ended March 31, 2007. The Company did not generate any revenue during the three-month period ended March 31, 2007 nor in the corresponding three- and nine-month periods ended March 31, 2006. The Company's entry into the oil and gas and natural resource exploration business began on July 14, 2006. Previously, the Company's focus had been on the evaluation and selection of existing businesses to effect a merger or acquisition. The Company has been in the development stage since July 2001.
General and Administrative Expenses. The Company incurred $558,911 and $2,535,575 in general and administrative expenses for the respective three- and nine-months ended March 31, 2007, compared to $509,635 and $1,943,352 for the respective three- and nine-months ended March 31, 2006. The increases in 2007 were due primarily to expenses incurred to support and to facilitate the growth of Matrixx, as explained below.
Included in general and administrative expense for the three months ended March 31, 2007 was $435,263 of expense related to the issuance of an aggregate of 50,501,624 shares of Common Stock to consultants in lieu of cash compensation. In addition, $51,488 of expense was related to the issuance of an aggregate of 2,476,118 shares of Common Stock for prepaid consulting expenses. Included in general and administrative expense for the nine months ended March 31, 2007 was $2,078,695 of expense related to the issuance of an aggregate of 113,579,487 shares of Common Stock to consultants in lieu of cash compensation. In addition, $461,424 of expense was related to the issuance of an aggregate of 24,383,800 shares of Common Stock for prepaid consulting expenses. At March 31, 2007, the Company had no cash.
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Consultants receiving stock agreed to receive these securities, in lieu of cash, for payment of services rendered.
Production Expenses. The Company incurred $352 in production expenses during the nine-months ended March 31, 2007. The production expenses included transportation, marketing and severance taxes associated with the production of oil and gas revenues. There were no production expenses for the three- month period ended March 31, 2007, nor for the corresponding three- and nine-month periods in 2006.
Depreciation, Depletion, & Amortization ("D D & A"). The Company recognized $222 in D D & A expense in the nine-month period ended March 31, 2007, but no D D& A expense during the three- month period ended March 31, 2007. There was no D D & A expense recognized in the three- and nine-months ended March 31, 2006. The expense recognized during the nine-months ended March 31, 2007 represents amortization on evaluated oil and gas properties and is computed on the units of production method based on all proved reserves.
Loss on Abandonment of Proven Wells. The Company recognized a $119,065 loss on abandonment of proven wells during the three- and nine- months ended March 31, 2007. There were no losses for the abandonment of proven wells during the three- and nine-month periods ended March 31, 2006. The loss recognized during the three- and nine-month periods ended March 31, 2007 is due to mechanical difficulties which arose on a producing well thus rendering it impracticable to maintain production.
Interest Expense. The Company recognized $15,785 and $33,275 in interest expense for the respective three and nine month periods ended March 31, 2007, and $2,916 and $4,813 in interest expense in the three- and nine-months ended March 31, 2006. The higher expense realized during the three- and nine-month periods ended March 31, 2007 represents interest on borrowings to assist the Company with its acquisition strategy.
Net Loss. As a result of the foregoing factors, the Company's net loss increased to $693,761 for the three months ended March 31, 2007, compared to a net loss of $512,551 for the three months ended March 31, 2006. The net loss per share was negligible for the three months ended March 31, 2007, compared to a net loss per share of $0.01 for the three months ended March 31, 2006. The Company's net loss increased to $2,684,643 for the nine months ended March 31, 2007, compared to a net loss of $1,948,165 for the nine months ended March 31, 2006. The net loss per share was $0.01 for the nine month period ended March 31, 2007, compared to a net loss per share of $0.04 for the nine month period ended March 31, 2006.
LIQUIDITY AND CAPITAL RESOURCES
The Company has an immediate need for capital. At March 31, 2007, the Company had no cash or cash equivalents. The Company's operating activitiesused $234,869 in net cash during the nine months ended March 31, 2007, compared with $157,530 in net cash used by operating activities during the nine months ended March 31, 2006. The cash used by operating activities during the nine-months ended March 31, 2007 was primarily due to non-cash gains of $2,250,184 reflecting the issuance of stock for services and prepaid services, $50,000 for the issuance of stock for a finance fee, and $810 for the issuance of stock on a subscription receivable. Other gains contributing to net cash used by operating activities included a $289,934 decrease in prepaid expenses, an increase in accrued liabilities - related parties of $3,299 and an increase in accrued interest of $33,275. These gains were offset by an increase in other assets of $516 and a decrease in accounts payable and accrued liabilities of $177,212. The cash used by operating activities during the nine months ended March 31, 2006 included non-cash gains of $1,697,777 reflecting the issuance of stock for services and prepaid services offset by other changes affecting net cash used by operating activities at March 31, 2006. These other changes included a decrease in prepaid expenses of $161,851, an increase in accounts payable and accrued liabilities of $1,213, an increase of $6,981 in accrued liabilities - related parties, and an increase in accrued interest of $4,813, offset by an increase in deferred cost of acquisition of $82,000.
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The Company utilized $475,078 in cash for investing activities during the nine months ended March 31, 2007. The Company invested $570,299 in unproven oil and gas properties during the nine-months ended March 31, 2007 offset by a decrease in cash paid in advance of acquisitions of $95,000 and $222 in D D & A resulting from the write off of proven oil and gas properties net of D D & A. There were no investing activities in the nine months ended March 31, 2006. Financing activities provided $709,874 of cash during the nine months ended March 31, 2007, consisting primarily of $588,210 in proceeds from notes payable and $146,190 in proceeds from the subscription receivable to GCCC and $475 in bank overdrafts, offset by $25,000 paid on notes payable. During the nine months ended March 31, 2006, financing activities provided $157,555 of cash consisting primarily of $145,055 in proceeds from the subscription receivable to GCCC and $12,500 in proceeds from notes payable.
The Company has received minimal revenues to date from to its recent investments in oil and gas properties, and has experienced operating losses since inception primarily caused by its continued development and administrative costs. As shown in the accompanying financial statements, the Company incurred net losses of $693,761 and $2,684,643 for the respective three and nine months ended March 31, 2007. Since inception, the Company has incurred a net loss of $20,005,924. Primarily as a result of these recurring losses, Matrixx's independent certified public accountants modified their report on the June 30, 2006 financial statements to include an uncertainty paragraph wherein they expressed substantial doubt about the Company's ability to continue as a going concern. Management of the Company is actively seeking additional capital; however, there can be no assurance that such financing will be available on terms favorable to the Company, or at all. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Continuation of the Company as a going concern is dependent on the Company continuing to raise capital, developing significant revenues and ultimately attaining profitable operations.
On May 27, 2004 the Company executed a Convertible Promissory Note in the principal amount of $160,000 (the "Note") with Interactive Ideas Consulting Group ("IICG"). The Note bears interest at the rate of 8% per annum and was due and payable in full on or before May 26, 2005. The Note is convertible into the Company's common stock after January 2, 2005, at a conversion price equal to the closing bid price for the Company's common stock on the date prior to the date of notice of conversion. Conversion is automatic at maturity if IICG does not request conversion earlier and if there is no event of default. The Company believes that there is a sufficient basis on which to dispute the amounts of principal and interest of the Note. As such, the Company accrued interest through the maturity date ofMay 26, 2005, in the amount of $12,800; no amounts for interest have been accrued beyond that date. As of the date of this filing the Company has not converted the Note and IICG has not requested a conversion.
On September 14, 2004, the Company executed the SPA with GCCC. The SPA called for the issuance by the Company of an aggregate of 400,000 shares of restricted Common Stock to GCCC in consideration of the payment of $500,000 in cash. The Company was toreceive the funds in $50,000 increments each quarter, beginning October 15, 2004.The 400,000 shares were to be held in escrow by the Company and delivered on a pro-rata basis within 10 days of receipt of each installment. The SPA included a provision that the purchase price per share, and therefore the number of shares to be delivered at the time of each installment payment, would be calculated for each installment at the lesser of: (a) $1.25 or
(b) a 37.5% discount to the 10 day trailing closing price of the Company's Common Stock at the time of each payment. At September 14, 2004, the Company had an aggregate of 305,108 shares of Common Stock outstanding on a fully-diluted basis. Based on the price of the Company's Common Stock at that date, GCCC would have owned and controlled approximately 56.73% of the Company's fully-diluted Common Stock and 56.73% of the Company's outstanding Common Stock calculated pursuant to Rule 13d-3(d)(1)(B) of the Securities Exchange Act of 1934. As of July 18, 2006, the Company had received an aggregate of $500,810 in financing from the SPA. On September 18, 2006, the Company delivered 18,543,373 shares of restricted Common Stock, at an average price of $0.027 per share, as calculated using method (b) described above thus completing the terms of the SPA.
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The Company and GCCC sought to identify and evaluate business opportunities for acquisition or merger to provide long-term growth for its shareholders and to meet the Company's objective of attaining a listing on a national exchange. On October 10, 2005, the Company executed the Hazard Agreement with Overseas for the purchase of Overseas' 98% interest in the Hazard Lake Property in Ontario, Canada. The Hazard Agreement called for an aggregate purchase price of $397,000, of which a note for $130,000 was issued, payable in annual installments as follows: $25,000 on March 15, 2006, $30,000 on March 15, 2007, $35,000 on March 15, 2008, and $40,000 on March 15, 2009. Overseas extended the March 15, 2006 payment date to coincide with the closing of the acquisition on July 14, 2006. The Company has also issued 2,000,000 shares of Common Stock to Overseas. These shares were delivered from the 12,500,000 shares issued to GCCC pursuant to the terms of the GCCC Agreement. The Hazard Agreement valued the shares at $200,000, or $0.10 per share, based on the current market price on the date of the Hazard Agreement. However, the 12,500,000 escrowed shares were valued at $0.40 per share when issued to GCCC and, therefore, the Company was initially required to value the 2,000,000 shares transferred to Overseas at $0.40 per share for an aggregate value of $800,000, thus making the total purchase price to Matrixx $997,000. As a result of the Company's recently focused attention on acquiring oil and gas properties, it was determined that the value ofthe Hazard Lake Property indeferred acquisition cost was impaired. At June 30, 2006, the Company recognized an impairment in the value of the Hazard Lake Property of $600,000. As of the date of this filing, the Company has not paid the current installment of $35,000 which was due March 15, 2007; however, the Company and Overseas are discussing payment options. The current portion of the note with accrued interest is $68,769, and is included in current liabilities; the balance of $46,574 is included in long-term liabilities.
On November 15, 2005, the Company executed the Letter Agreement with Sterling to purchase a 5% minority interest in an oilprospect property known as the Clovelly Prospect ("Clovelly"). The Letter Agreement called for an aggregate purchase price of $115,000, of which $15,000 has been prepaid in cash and the balance of $100,000 was paid with the issuance of 2,000,000 shares of registered Common Stock also delivered from the shares issued to GCCC. The shares were issued on January 30, 2006 from the 12,500,000 shares issued to GCCC pursuant to the terms of the GCCC Agreement, leaving the balance of shares in escrow at 8,500,000. The Letter Agreement valued the shares at $100,000, or $0.05 per share, based on the current market price of the Company's Common Stock on the date of the Letter Agreement. However, the 12,500,000 escrowed shares were valued at $0.40 per share when issued to GCCC and, therefore the Company is required to value the 2,000,000 shares transferred to Sterling at $0.40 per share for an aggregate value of $800,000. It is possible that in the future the Company will be required to recognize an impairment in the value of its interest in the Clovelly investment. As of March 31, 2007, the Company has paid $177,450 in development costs for the first well, the #2 Allain-LeBreton well, drilled at Clovelly with a balance owing of $102,660.
The Company's goal is to invest cash flow proceeds from successes into new projects. To date financing has been supplied by the SPA with GCCC. The Company is seeking new sources of funding, however, there can be no assurance that a renewal will be reached or that if reached it will be on terms and conditions favorable to the Company. In the interim, on August 1, 2006, the Company executeda Loan Agreement ("Kuma Loan") with Kuma Holdings LTD, aBritish Columbiacorporation ("Kuma"). Pursuant to the terms of the Kuma Loan, the Company may borrow up to $500,000 to pay for acquisitions, cash calls, payables and public company expenses. The Kuma Loan matures in 30 months, on January 31, 2009, and bears interest at 10% per annum payable at maturity. As an incentive for the Kuma Loan, Kuma will receive a 10% bonus payable in restricted Common Stock, to be issued upon receipt of the $500,000 aggregate principal. On January 1, 2007, the Kuma Loan was modified to increase the amount of funding available to the Company to $750,000.
As of March 31, 2007, the Company has received $580,710 in funding from the Kuma Loan. Aggregate principal and interest owing on the Kuma Loan at March 31, 2007, is $607,697. On February 22, 2007, the Company issued 4,192,833 shares of restricted Common Stock valued in aggregate at $50,000 for the 10% bonus payable for completion of the initial $500,000 in funding.
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On August 28, 2006, the Company entered into the Buck Snag Agreement for the acquisition of a 42.5% working interest in the Buck Snag from Texahoma. The Company paid $150,000 to Texhoma for an initial 57.5% participation in Buck Snag but subsequently, the Company agreed to convey 15% of its participation as partial payment for a 10% participation in the Sandy Point Prospect. As of March 31, 2007, the Company has paid the full purchase price of $150,000, plus an additional$72,250 for development of the Schiurring #1 well and $30,761 for the completion costs. The well was completed and initial revenues of $3,846 were received, however, due to mechanical problems, it was determined that the well should be plugged and abandoned. The Company still owes $16,054 for overages in completion costs and $4,250 for the costs to plug and abandon. As of March 31, 2007, the Company has paid an aggregate of $141,253 for drilling and completion of the Schiurring #2 well representing its proportionate share of all cash calls for drilling and completion on the Schiurring #2 well. Due to similar difficulties encountered with the Schiurring #1 well, the Schiurring #2 well will be re-completed in the shallower pay sands. The Company's proportionate share of re-completion costs is expected to be $10,625.
On October 5, 2006, the Company finalized the Manvel Agreement with Texhoma for the acquisition of 55% majority working interest in the Miocene and Oakville Prospects located in Brazoria County, Texas for an aggregate of $60,000. Subsequently, the Company has agreed to convey 10% of its participation in the Manvel Properties to Texhoma as partial payment for a 10% participation in the Sandy Point Prospect. As of the date of this filing, the Company has paid $30,000 toward the participation cost and is further obligated to 42.5% of estimated dry hole costs for the wells of $76,500 and $45,000, respectively.Should the wells be successful, the Company's estimated portion of completion costs is $25,000 for each Manvel Prospect.
On November 16, 2006, the Company finalized the terms of Agreement with Texhoma and Sunray, for the acquisition of a 10% working interest in the Sandy Point Prospect. The acquisition cost of $35,928 is to be paid through a conveyance of 15% of the Company's participation in Buck Snag valued at $22,500; 10% . . .
SPEECH ONLY !!!!!!!!!!!! LOL !!!!!!!! LOL !!!!!!!!
Press Release Source: Matrixx Resource Holdings, Inc.
Matrixx to Acquire an Additional Interest in the Clovelly Prospect
Monday May 21, 4:00 pm ET
LOS ANGELES, CALIFORNIA--(MARKET WIRE)--May 21, 2007 -- Matrixx Resource Holdings, Inc. (OTC BB:MXXR.OB - News), announced today that it has agreed to acquire an additional interest in the Oil and Gas Prospect known as the Clovelly Prospect.
Matrixx has signed a purchase agreement to acquire an additional eleven percent (11%) working interest for a total of a sixteen percent (16%) working interest in the Clovelly Prospect. 3D Seismic survey of the property has caused for a plan test of the "P" Sand at approximately 14,700 feet, and if successful, would expect significant reserves in the well to an anticipated 11 million barrels of oil.
The well was originally drilled by Grey Wolf (AMEX:GW - News) under a turnkey contract with the operator to test the "M" at 13,500 feet. After not reaching the "M" sand at 13,500, the operator and its partners have agreed to continue to drill to approximately 14,200 feet to reach the "M" sand and to test the "P" sand. After drilling to 14,280 feet, we reached what is known as a stringer sand as well as a drilling break. A stringer sand is one that has evidence of oil in the sand. A "drilling break" is defined as encountering "reservoir quality sand" and pressure, in this case, gas was entering the well bore.
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At that point the gas pressure could not be regulated properly, therefore the well had to be plugged and abandoned for both safety and logistical reasons.
After carefully reviewing the available options, it had been determined to initiate several courses of action. Certain discoveries and findings while drilling the No. 2 well has caused drilling a "twin" hole to become a certain and viable option. A twin hole is described as drilling a well adjacent to an existing well, such as the No. 2 well. Additionally, for economical feasibility, it is planned to drill as soon as practicable, an additional well known as a PUD (Proven-Undeveloped) well up-structure to a target depth of 12,500. The PUD recoverable reserves are estimated at 250,000 barrels of oil with an upward potential of 500,000 barrels.
Drilling of the twin will take place to the expected "M" sand. The Company expects drilling of the twin to take place near the original well so that we may tap into the first gas discovery found; while, simultaneously at a distance as not to encounter unfavorable conditions as a result from the initial hole. This is done to maintain the integrity of the new drilling location.
The No. 2 well encountered a two foot gas discovery, but due to the location of the hole; the drilling may have occurred offset whereby an additional 28 feet of discovery may exist containing up to 5 BCFG (billion cubic feet of gas) valued at nearly $35 million. While the gas discovery might be considered as an added benefit, the intended cause of drilling the twin is primarily to target what is known as the "M" sand at or about 14,300 feet to 14,500 feet with a prospective size of 10 to 11 million barrels of oil.
Located 35 miles southwest of New Orleans in the Lafourche Parish, the Clovelly Field is a late piercement salt dome that traps hydrocarbon from Late to Middle Miocene time. Since its discovery in 1950, the field has produced in excess of 30 MMBO (Million barrels of oil) and 200 BCFG (Billion cubic feet of gas). Reservoirs typically exhibit moderate water drives and benefit from water and/or gas injection. Stone Energy Corporation (NYSE:SGY - News) has redeveloped the eastern flank of the field with additional drilling and water injection. Similar opportunities exist here at our proposed location.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan", "confident that", "believe", "scheduled", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company's products, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
Contact:
Contacts:
Matrixx Resource Holdings, Inc.
Konstantine Tsakumis
Media & Investor Relations
(347) 647-1508
Email: ir@mrhi.net
Website: http://www.mrhi.net
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Source: Matrixx Resource Holdings, Inc.