TECHNIS ENERGY LTD.
UPDATE
November 30, 2015
To Technis Investors/Shareholders:
First, let me apologize for taking so long to put out an update for you. However, I wanted to have information to present to you that that would offer some positive information that would reflect the progress that I have made and an actual plan that will allow each of you to hopefully have the opportunity to recover your investment and realize a profit down the road.
Frank Cole Legal Issues: As most are aware I requested the investors to contribute up to $500 each to fund my efforts to pursue monies that were misappropriated by Frank Cole, which is estimated to be at least $1 million. I did receive some contributions for which I am most appreciative, but it was not sufficient to totally fund the legal costs that I would incur in this pursuit. As it turned out another party had already initiated legal proceedings against Mr. Cole, the Estate of his wife, Technis/Trishmar, and another unrelated party. This suit was derived from some of the dealings that Mr. Cole had in Wood County, Texas on some properties in which the Company held an interest. These properties were totally unrelated to the majority of the assets of the Company. Because the offices of the Company were closed prior to my becoming involved with Technis the address of the Company was not current and we were never given notice of this suit. However, even had Technis been served there would not have been sufficient funds available to defend the suit.
A default judgment was rendered against Mr. Cole, his wife’s Estate and Technis in the amount of $6.3 million and an additional $12 million in exemplary damages. The Plaintiff in the suit can now foreclosure on any current assets owned by Technis and there are plans in the works to accomplish that, primarily in order to prevent any other creditor, investor or other party to attempt to cloud the title to these assets. I expect the foreclosure to occur in mid-December.
I have become very well acquainted with the party who was awarded the judgment and she has invited me to become involved in a loosely organized partnership with her to get the wells owned by the Company back into commercial production, and I have agreed. As we progress any working interest in any of the wells that were owned by Technis that I will receive will be held in the Technis Beneficial Trust on behalf of the investors and shareholders of the Company. It will not be easy to secure the funding to invest into the wells, but to date we have three (3) different groups that have either given us strong verbal commitments or have executed Memorandums of Understanding providing for terms on certain properties. The plan of each such entity is to either re-complete wells in the Austin Chalk formation that lies immediately above the Upper Woodbine formation, which is the zone in which the wells have been producing, to deepen wells to the Lower Woodbine as was one of the projects formulated by Mr. Cole but never attempted, or to rework the wells and return them to production. The latter is the least desirable of the options and would recover the least amount of production from the wells. I have made a serious study of both possibilities and I believe there is real merit for the first two options.
