10/29 New email from Brad Holmes says: ----
"Mr. xxx: It’s important to find not just financing but the right financing that will allow us to grow shareholder value, it does none of us any good if we put the wrong financing in place and lose the company to a vulture group.
There have been a lot of changes in oil and gas finance in recent years:
1. natural gas deals like ours play second fiddle to oil deals -
2. commercial banks stopped lending to small oil and gas companies in 2015, they will lend to Apache but not to us
3. there used to be a large group of mezzanine lenders that specialized in oil and gas and those are the people we would have approached with this deal, however they disappeared in 2014 and have not been replaced. those funds that claim they will do mezzanine lending don’t understand oil and gas, as a result their terms are are completely unacceptable.
4. the private equity funds that work in oil and gas want to lend $400 million not $50 million, we are just too small for them and again, their terms would probably hamstring us in terms of growing the company.
5. we continue to work to find the right financing for this deal. when we are successful it will allow us to grow the company and increase shareholder value - Kevin and I are both shareholders
Brad Holmes"
In response to several emails the last one being:
"Dear Mr.Holmes:
Our group is still up in the air as to any progress in obtaining financing.
Has there been any current efforts to secure funding on the part of 1st NRG?
Have any additional funding sources been identified and approached for assistance?
Are there any current activities either planned or underway to start up any or all wells in Wyoming?
Do you anticipate 1st NRG producing any product this current season?
Many of us have been confused by the difficulty in obtaining financing in what should be a favorable market.
We look forward to hearing from you soon on the status of 1st NRG and potential solutions to the financing issues.
Thank you for your time and efforts, and we look forward to hearing from you soon.
Sincerely,"
