The allegations in the lawsuit include, among other things, claims that Company's management has been grossly negligent and/or has acted in a fraudulent manner in conducting the Company's business. Specifically, the Company's President and Chief Executive Officer, Brian Fox, is alleged to have acted in a grossly negligent or fraudulent manner in his dealings with working interest investors (the "investors") in a number of respects, including but not limited to: (a) failing to drill or perform promised re-completion work on leases, (b) hiring an operator with a criminal and regulatory history of investor fraud, (c) failing to take steps to preserve company assets, (d) taking actions which caused the unreasonable loss of company assets, (e) withholding funds due to the Company from affiliated entities he controlled, (f) transferring company assets without an exchange of reasonably equivalent value, (g) filing misleading reports with regulators, and (h) paying himself an exorbitant salary and bonuses that were not justified under the circumstances.


The Receiver has been engaged in an ongoing investigation of these allegations. Based upon the review of an accounting schedule prepared by the Company's Chief Financial Officer, the Receiver has preliminarily determined that the Company engaged in a fraudulent "Ponzi" scheme with regard to its working interest investors during 2007. In this regard, the Company's President, Brian Fox, committed the Company to pay a minimum 9% return to numerous working interest investors. During 2007, a total of $4,413,406 in interest payments were made to those working interest investors, of which $3,263,004 came from funds received from subsequent working interest investors, not profits generated by the Company from oil and gas production. The scheme began to reveal itself when there were insufficient oil and gas production and funds from later investors to pay the promised returns to the earlier investors. Additionally, the Company has failed to pay various expenses for the past 3 to 6 months, which has resulted in the Company being in default on various obligations and some of the producing oil and gas properties of the Company being shut down. One of the most recent notices of default involves a purported Company obligation in excess of $1 million in connection with a lease of certain oil and gas equipment.


Since being appointed, the Receiver has attempted to assert control over the various oil and gas producing properties of the Company. The Receiver has retained the services of an independent accountant who, with the assistance of the Company's CFO, is attempting to indentify the Company's oil and gas properties as well as its current and past due liabilities. Mr. Fox's lack of cooperation with the Receiver has caused additional disruptions in the Company's operations.


The Receiver has also retained an independent oil and gas engineering consulting firm to evaluate the known oil and gas properties of the Company and its working interest investors. The report, which is expected to be issued before the end of August, will provide the estimated oil and gas reserves for the known oil and gas properties of the Company, as well as a geological (prospective) evaluation of those properties. In this regard, one of the principal properties of the Company, the Weesatche lease in Goliad County, Texas, is the subject of pending litigation with the operator of the property.

The operator is a company controlled by John Ehrman. Mr. Ehrman has been a subject of two prior SEC enforcement proceedings and has previously pled guilty to a federal criminal fraud charge. Mr. Ehrman is currently the subject of additional criminal fraud charges. Mr. Fox has been the subject of regulatory proceedings in an unrelated matter filed by the Calgary Securities Commission.

None of the foregoing regulatory and criminal proceedings were disclosed by the Company in its prior SEC filings or its working interest investors.


The Company will be in a better position to evaluate its properties, its prospects, and the value of investors' potential future revenues when the engineering report is received and an accounting is completed. The Receiver believes, based upon his initial investigation, that the Company's financial statements will be materially restated.

What if Huios Energy took over all of PWDR as settlement???

Varilease Financing also wants $1.6 million.

He has two other companies in Oklahoma--these were small potato law suits against them.

9:30 AM

Was it moved up a day? Still states the 23rd.

IN THE DISTRICT COURT IN AND FOR TULSA COUNTY, OKLAHOMA
MARK CHANG,
Plaintiff, and
ALAN KWOK WAI WONG,
Plaintiff, and
LIM HONG BENG,
Plaintiff, and
HUIOS ENERGY LLC,
Plaintiff, and
OILPODS SINGAPORE PTE LTD,
Plaintiff,
v.
POWDER RIVER PETROLEUM
INTERNATIONAL INC,
Defendant, and
BRIAN FOX,
Defendant. No. CJ-2008-4855
(Civil relief more than $10,000:
BREACH OF AGREEMENT - CONTRACT)

Filed: 07/14/2008


Judge: Gassett, J. Michael



Parties
--------------------------------------------------------------------------------
BENG, LIM HONG , Plaintiff
CHANG, MARK , Plaintiff
FOX, BRIAN , Defendant
HUIOS ENERGY LLC , Plaintiff
OILPODS SINGAPORE PTE LTD , Plaintiff
POWDER RIVER PETROLEUM INTERNATIONAL INC , Defendant
WAI WONG, ALAN KWOK , Plaintiff

Attorneys
--------------------------------------------------------------------------------
Attorney Represented Parties
Drummond, Cecil Gentner(Bar # 2503)
5200 South Yale
Suite 507
Tulsa, OK 74135 CHANG, MARK
WAI WONG, ALAN KWOK
BENG, LIM HONG
HUIOS ENERGY LLC,
OILPODS SINGAPORE PTE LTD,



Events
--------------------------------------------------------------------------------
Event Party Docket Reporter
Wednesday, July 23, 2008 at 9:30 AM
SHOW CAUSE HEARING ON INJUNCTION(HEA) J. Michael Gassett

Issues
--------------------------------------------------------------------------------
For cases filed before 1/1/2000, ancillary issues may not appear except in the docket.


Issue # 1.
Issue: BREACH OF AGREEMENT - CONTRACT (CONTRACT)
Filed by: CHANG, MARK
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 2.
Issue: DECLARATORY JUDGMENT (DECLARE)
Filed by: CHANG, MARK
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 3.
Issue: BREACH OF AGREEMENT - CONTRACT (CONTRACT)
Filed by: WAI WONG, ALAN KWOK
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 4.
Issue: DECLARATORY JUDGMENT (DECLARE)
Filed by: WAI WONG, ALAN KWOK
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 5.
Issue: BREACH OF AGREEMENT - CONTRACT (CONTRACT)
Filed by: BENG, LIM HONG
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 6.
Issue: DECLARATORY JUDGMENT (DECLARE)
Filed by: BENG, LIM HONG
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 7.
Issue: BREACH OF AGREEMENT - CONTRACT (CONTRACT)
Filed by: HUIOS ENERGY LLC
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 8.
Issue: DECLARATORY JUDGMENT (DECLARE)
Filed by: HUIOS ENERGY LLC
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 9.
Issue: BREACH OF AGREEMENT - CONTRACT (CONTRACT)
Filed by: OILPODS SINGAPORE PTE LTD
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Issue # 10.
Issue: DECLARATORY JUDGMENT (DECLARE)
Filed by: OILPODS SINGAPORE PTE LTD
Filed Date: 07/14/2008
Party Name: Disposition Information:

Defendant: POWDER RIVER PETROLEUM INTERNATIONAL INC
Pending.

Defendant: FOX, BRIAN
Pending.

Docket
--------------------------------------------------------------------------------
Date Code Count Party Serial # Entry Date
07-14-2008 TEXT 1 67606049 Jul 14 2008 9:28:52:623AM - $ 0.00
CIVIL RELIEF MORE THAN $10,000 INITIAL FILING.
--------------------------------------------------------------------------------

07-14-2008 CONTRACT - 67606051 Jul 14 2008 9:28:52:713AM Realized $ 0.00
BREACH OF AGREEMENT - CONTRACT
--------------------------------------------------------------------------------

07-14-2008 DMFE - 67606052 Jul 14 2008 9:28:52:733AM Realized $ 2.00
DISPUTE MEDIATION FEE($ 2.00)
--------------------------------------------------------------------------------

07-14-2008 PFE1 - 67606053 Jul 14 2008 11:06:12:803AM Realized $ 150.00
PETITION($ 150.00)
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 PFE7 - 67606054 Jul 14 2008 9:28:52:733AM Realized $ 6.00
LAW LIBRARY FEE($ 6.00)
--------------------------------------------------------------------------------

07-14-2008 OCISR - 67606055 Jul 14 2008 9:28:52:733AM Realized $ 25.00
OKLAHOMA COURT INFORMATION SYSTEM REVOLVING FUND($ 25.00)
--------------------------------------------------------------------------------

07-14-2008 CCADMIN - 67606056 Jul 14 2008 9:28:52:733AM Realized $ 1.00
COURT CLERK ADMINISTRATIVE FEE ON COLLECTIONS($ 1.00)
--------------------------------------------------------------------------------

07-14-2008 CHAB - 67606057 Jul 14 2008 9:28:52:733AM Realized $ 10.00
C.H.A.B. STATUTORY FEE($ 10.00)
--------------------------------------------------------------------------------

07-14-2008 AGVSU - 67606058 Jul 14 2008 9:28:52:733AM Realized $ 3.00
ATTORNEY GENERAL VICTIM SERVICES UNIT($ 3.00)
--------------------------------------------------------------------------------

07-14-2008 CCADMIN03 - 67606059 Jul 14 2008 9:28:52:733AM Realized $ 0.30
COURT CLERK ADMINISTRATIVE FEE ON COLLECTIONS($ 0.30)
--------------------------------------------------------------------------------

07-14-2008 LTF - 67606060 Jul 14 2008 9:28:52:883AM Realized $ 10.00
LENGTHY TRIAL FUND($ 10.00)
--------------------------------------------------------------------------------

07-14-2008 SMF - 67606061 Jul 14 2008 9:29:33:753AM Realized $ 10.00
SUMMONS FEE (CLERKS FEE)-2($ 10.00)
--------------------------------------------------------------------------------

07-14-2008 SMIP - 67606062 Jul 14 2008 9:28:52:953AM Realized $ 0.00
SUMMONS ISSUED - PRIVATE PROCESS SERVER
--------------------------------------------------------------------------------

07-14-2008 CRF - 67606126 Jul 14 2008 9:30:33:273AM Realized $ 20.00
COURT REPORTER FEE-TRIAL ON MERITS($ 20.00)
--------------------------------------------------------------------------------

07-14-2008 MO - 67607148 Jul 15 2008 2:28:18:160PM - $ 0.00
PLTFS' MOTION FOR TEMPORARY RESTRAINING ORDER, TEMPORARY/PERMANENT INJUNTION AND OTHER EMERGENCY RELIEF WITH SUPPORTING MEMORANDUM OF LAW
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 MO - CHANG, MARK 67607180 Jul 14 2008 10:04:11:923AM - $ 0.00
PLTFS' MOTION FOR APPOINTMENT OF RECEIVER & MEMORANDUM OF LAW
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 EAA - CHANG, MARK 67608601 Jul 14 2008 10:41:53:093AM - $ 0.00
ENTRY OF APPEARANCE (DAVID WIDDOES ENTERS AS ADD'L COUNSEL) / CERTIFICATE OF SERVICE
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 TRO - CHANG, MARK 67614802 Jul 14 2008 2:16:09:560PM - $ 0.00
TEMPORARY RESTRAINING ORDER AND OTHER EMERGENCY RELIEF (7-23-08 AT 9:30 AM)
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 O - 67614827 Jul 14 2008 2:16:51:240PM - $ 0.00
ORDER APPOINTING RECEIVER (BRUCE W DAY)
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-14-2008 CTFREE - 67616115 Jul 14 2008 3:04:26:200PM - $ 0.00
GASSETT, J. MICHAEL: CECIL DRUMMOND AND DAVID WIDDOES APPEAR FOR THE PLAINTIFF; BRUCE DAY PRESENT; TARA BONNELL PRESENT FOR OKLAHOMA DEPARTMENT OF SECURITIES. TEMPORARY RESTRAINING ORDER ENTERED. ORDER ENTERED APPOINTING RECEIVER. SHOW CAUSE HEARING ON INJUNCTION SET 7-23-08 AT 9:30 A.M.
--------------------------------------------------------------------------------

07-14-2008 TEXT - 67606050 Jul 14 2008 9:28:52:683AM - $ 0.00
OCIS HAS AUTOMATICALLY ASSIGNED JUDGE GASSETT, J. MICHAEL TO THIS CASE.
--------------------------------------------------------------------------------

07-14-2008 ACCOUNT - 67606107 Jul 14 2008 9:30:15:823AM - $ 0.00
RECEIPT # 2008-1485818 ON 07/14/2008.
PAYOR: BOETTCHER DRUMMOND TOTAL AMOUNT PAID: $ 217.30.
LINE ITEMS:
CJ-2008-4855: $160.00 ON AC01 CLERK FEES.
CJ-2008-4855: $3.00 ON AC07 ATTORNEY GENERAL VICTIM SERVICES UNIT.
CJ-2008-4855: $6.00 ON AC23 LAW LIBRARY FEE.
CJ-2008-4855: $1.30 ON AC31 COURT CLERK REVOLVING FUND.
CJ-2008-4855: $2.00 ON AC64 DISPUTE MEDIATION FEES.
CJ-2008-4855: $10.00 ON AC69 CHILD ABUSE MULTIDISCIPLINARY FEE.
CJ-2008-4855: $25.00 ON AC79 OCIS REVOLVING FUND.
CJ-2008-4855: $10.00 ON AC81 LENGTHY TRIAL FUND.

--------------------------------------------------------------------------------

07-14-2008 ACCOUNT - 67606148 Jul 14 2008 9:30:59:453AM - $ 0.00
RECEIPT # 2008-1485820 ON 07/14/2008.
PAYOR: BOETTCHER DRUMMOND TOTAL AMOUNT PAID: $ 20.00.
LINE ITEMS:
CJ-2008-4855: $20.00 ON AC01 CLERK FEES.

--------------------------------------------------------------------------------

07-15-2008 TEXT - 67634437 Jul 16 2008 8:25:24:737AM - $ 0.00
OATH OF RECEIVER//
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-16-2008 O - 67647848 Jul 17 2008 8:09:36:820AM - $ 0.00
PLAINTIFFS' MOTION TO REDUCE THE AMOUNT OF THE RECEIVER'S BOND//
ORDER// REDUCTION OF BOND/ 7/16/08
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-16-2008 CTFREE - 67674496 Jul 18 2008 2:02:45:273PM - $ 0.00
GASSETT, J. MICHAEL: ORDER REDUCING BOND TO $100,000.00.
--------------------------------------------------------------------------------

07-17-2008 S - POWDER RIVER PETROLEUM INTERNATIONAL INC 67651669 Jul 17 2008 10:26:08:380AM - $ 0.00
PARTY HAS BEEN SUCCESSFULLY SERVED. SUMMONS SERVED ON POWDER RIVER PETROLEUM INTERNATIONAL INC., CORPORATE SERVICE, BY SERVING WITH FREDERICK K SLICKER, ON 07-04-08 BY PROCESS SERVER
Document Available at Court Clerk's Office
--------------------------------------------------------------------------------

07-18-2008 CTFREE - 67678309 Jul 18 2008 4:48:24:413PM - $ 0.00
GASSETT, J. MICHAEL: ORDER APPROVING SURETY ENTERED.
--------------------------------------------------------------------------------

07-18-2008 O - 67683463 Jul 21 2008 11:12:08:860AM - $ 0.00
ORDER APPROVING SURETY
Document Unavailable (#1007154964)
--------------------------------------------------------------------------------

07-21-2008 BOND - 67683472 Jul 21 2008 11:12:32:570AM - $ 0.00
RECEIVER'S BOND
Document Unavailable (#1007154968)

9% was what Asia investors were to receive until production came up to that amount. With over 60 million from Asia, PWDR has a payout of over 5 million a year. The Working Interest just was not working.

Bankruptcy or Receivership.





On July 14, 2008, Powder River Petroleum International, Inc. (the “Company”) was served with a complaint (“Complaint”) alleging securities fraud and mismanagement by the Company and its President and Chief Executive Officer, Brian Fox, individually (“Defendants”). The Complaint was filed in the District Court of Tulsa County, State of Oklahoma (the “Court”), case number CJ 2008 04855, by plaintiffs Mark Chang, Alan Kwok, and Lim Hong Beng, individuals, and Huios Energy, LLC, an Oklahoma limited liability company, and OilPods Singapore Pte. Ltd., a Singapore private limited company (“Plaintiffs”).





In connection with the Complaint, Plaintiffs filed a temporary restraining order (“TRO”) freezing the Company’s assets and a petition for appointment of a receiver (“Receiver”), both of which were granted by the Court. The TRO was granted effective July 14, 2008 with a hearing scheduled for July 23, 2008. The Receiver, Bruce W. Day, Esq., was appointed effective July 14, 2008.





The Company is seeking litigation counsel to assist in reviewing and responding to the Complaint. At this time, the Company intends to contest the allegations vigorously.

Oilpods sues Fox ---Changs shares near worthless-- 2,400 Oilpod investors with $25,000 or more invested wondering "Where is the production?"

There was more paid in working interest than was received in oil and gas sales. Not enough production to meet the 9% guarantee payment to working interest.

I think there is a 5 day extension to submit the Q report. That would have been the 20th. There may be some major changes coming. JMHO

Hi James-- I see since the first of the year you have added a little 10 times averaging down. When do you think this is going to turn around and why?

Did you mean the 2nd well of 3 wells to be drilled on 5c??

I agree with you James. I think we are within pennies of the bottom but will wait for the 10Q.

"Management" is making the money at shareholder expense. 4.5 million lease operating costs to produce 3.3 million in oil and gas sales will not make this a profitable company for anything but salary and bonuses. Will be interesting to see how they try to "spin" their way out of this. It may read "Thanks for your money, we now have a new company to invest in. We will start over--All aboard. No, thanks, I think I will find another train. JMHO

Working interest is for the life of the well---even with working interest financing there has been dilution of 50%. The extension is for 15 days. Should file next week. Eric David letter said we would be happy.

http://ih.advfn.com/p.php?pid=trades&btn=s_ok&symbol=pwdr&s_ok=OK&minimise=

copy and paste to browser---shows buys and sells

293,250 sell volume, 88,500 buy volume. About the last 50,000 sold at .09. Need good news for the 1st quarter. Directors -- jumping ship?? or getting thrown overboard??? Much to be answered.

May want to try the Asia office--states that they will give a reply in 24 hours.

Chang has the WI investors in the far east and Fox the shareholders. With no oilpod info and lack of up to date info from Fox, how can one do proper DD to justify owning this stock. If you go to wallstraits.com it will give some insights of what the far east investors think. Could both ends be feeding the middle? The best info come from the Texas RRC and that does not show the production stated at the meeting. Just my own honest opinion.

JJ -- Do a little background on new posters and you will find many are just pushing Eric David stocks. Not saying thats bad---have to know when to get on and off the Eric David train. JMHO

There is a filing for this --compensation?

Zin -- you just lost credibility

3 billion is not posted

No Berlin naked short covering??? Stormy jumps ship on his biggest holding and Oilpods gets a weather report in place of production reports. I will wait until after the meeting and if my comfort level doesn't improve I will follow Stormy.

This is what needs to be said and acted upon at the meeting: "We aim to maximize the returns for our shareholders, keeping their needs central to all our decisions. By relying on our experience, constant innovation and commitment to honesty and transparency, we will build solid relationships with our stakeholders and a profitable business for years to come."

Mick--If you could post the production figures for Goliad found on the Texas RRC site it would help the entire board. TIA

I got the message, now show me the link to how many shares of PRVB are being shorted on the Berlin Exchange. They will be off the exchange next month. Grandfather Clause ends in October. In my opinion naked short selling has very little to do with the share price of PRVB today.

That is the next support level by the charts. I don't know what it will take to renew interest in PRVB. Does not seem that the working interest money is trickling down to shareholder value. All just my opinion.

Just an investor that does not let emotions play a part in my decisions. Retired and do well with oil and gas. The 10Q and the markets have much to do with this stock price as has been stated. The companies share of production has not helped. Joe, I hope something positive will bring back the volume and send it back to the .40s but I did not see anything in the 10Q to launch it in that direction. JMOHO --

Oxy --You have definitely done your homework. Only one well plus disposal well on Salt Dome. 10Q brings up more questions then it answers. I expect this to drop to the teens. JMOHO

According to the 10QSB for the first 6 months of 2007 $83,145 was used to buy back stock and $366,000 was proceeds from issuance of common stock.

Mick -- You have set the all time posting record for PRVB --I think I will have whatever you are having. Keep going, going, going--ATTABOY.

Thanks -- I am looking forward to your figures. It will be interesting when they can be compared to the Aug. 15th report. Hope you have accounting skills -- I get easily confused by some of the reports.

Production figures can be found on the RRC site for Texas. It is near impossible to accurately project numbers without knowing what percentage is working interest, royalty percent, field operators percent and "other" expenses. Have seen no guidance for the MacFadden or other projects that would keep shareholder interest up. The past 6 months has been a steady decline in share price---I prefer to dollar average up and will not bottom fish with this one.

How many wells have been added in the last 90 days?

Not too sure about Goliad "cash flow". Last quarter total income from oil and gas sales was $952,000 and the lease operating costs were $707,000. There were also bonuses of $356,000. Seems the working interest sales are bringing in the cash. Need more "producing property" to bring in more working interest money. Middle of August for the next report and lets hope it is a good one.