Strat Petroleum Ltd (SPRL)

[Billiam_2]

Hey Cousin, what's up?
Just thought you would like to know that SPRL is in the family of BIGN, RYLP, SBRX, TYEG, WWNG, and WWOG. My DD has brought me here. The same venture capitalists have invested in all of the listed companies. See the article below. Each one is poised for large returns and are being interwoven into a huge oil and gas play. How it all plays out is still to be seen.
GLTY
Billiam


Old Historical Post from another old board::

"Hydroslotter technology, brought up on this board by Barrymore99, is quite interesting. It was developed in Russia -- so it has something in common with Wavefront, because the Russians were also the first to seriously investigate vibrational/seismic stimulation in production oil wells.

As far as I know, a company named Biogenerics is the only way to invest in the hydroslotter technology. Note that this stock has already been taken up much higher this year, in May, before it fell from 20 cents to a penny.

What follows is not a hatchet job. It is difficult to raise money for small new companies. Promoters sometimes walk a fine line in trying to whip up interest.

Biogenerics is listed on the Pink Sheets. It is a Nevada corporation. It does not report to the SEC, although it does file simple quarterly reports which are available on pinksheets.com. The latest such report indicated nearly 190 million shares outstanding at the end of June. But as far as I know, the company can issue up to 210 million more shares, whenever it wants. An investor such a company had better have confidence in its management.

Here is the company's current Web site:
| http://www.bignltd.com
Unlike many or even most pinksheet companies, Biogenerics has filed regular reports on pinksheets.com here:
| http://www.pinksheets.com/quote/finance.jsp?symbol=BIGN
The company is to be commended for that, even though the reports are unaudited and these are not SEC filings.

Here is some of what I have dug up about Biogenerics and the people behind it. First some negatives, so I can finish up writing about some positives.

Here is a roster:
=> Americo (Rick) DeRosa: "advisor" to Biogenerics & large investor -- is associated with MRS Sciences (president, CEO & director) and various companies.
=> Ivan Cavric: large investor in Biogenerics -- is associated with MRS Sciences (vice-president, treasurer and director), Primequest Capital (President and Managing Partner), and Primequest Financial.
=> Gary Kelley: President, CEO and Director of Biogneerics -- was until very recently also president of National Detection Clinics.
=> MRS Sciences (www.mrssciences.com), a "start-up and early-stage venture capital firm": holds stock in Biogenics. MRS Sciences was formerly named Morningside Capital, and was listed on the Pinks (MSIIF) until recently. According to a statement filed with the Pinksheets, at the beginning of 2005 Cavric (vice-president, treasurer and director) and Derosa (president, CEO and director) held 54% of MRS Sciences and the mysterious South Concord held 11%.
=> TGC Ventures International, formerly National Detection Clinics (TGVI or NDCLF on the Pinks) -- its management includes or has included Gary Kelley, Americo DeRosa, and Ivan Cavric.
=> Strat Petroleum Ltd (SPRU on the Pinks) -- MRS Sciences was an investor, and distributed Strat stock to its own stockholders.
=> Stonebridge Resources (SBGX on the Pinks) -- its management and large investors include or has included Cavric (via Chelsea Management) and DeRosa (treasurer and director).

At the beginning of this year, the principal listed investors in Biogenerics were Cavric (7%), DeRosa (13%), Primequest (10%), and the mysterious South Concord (6%). In their pinksheet filings, the same corporate address in Welland Ontario is given for Biogenerics, MRS Sciences, and Stonebridge. So it is worth looking at the management of these three companies.


It is difficult for me to take seriously a company who issues a press release like Biogenerics' April 15 2005 release. The stock was trading for about $1/share, and Biogenerics carried out a 10-to-1 forward split. Did the board wanted to be SURE that Biogenerics remained a penny stock? The press release said the company would award 9 additional shares for each current share "in lieu of a dividend" in order to thank their loyal investors. Come again?!? They chop each share in ten pieces and give them back to investors, and that is a reward? The board also counts differently than I do, as they called this a 9-to-1 forward split.

To a cynical observer, effecting stock splits would appear to be this year's principal activity for the related company Stonebridge Resources. There was the 4-to-1 forward split announced in January, the 7-to-1 forward split "in lieu of a cash dividend" announced in May, and now the 1000-to-1 reverse split announced in October. Whew!!

And what is an oil technology doing with a moniker like "Biogenerics"? Well, here is an older description of the company: "At Biogenerics Limited., everything we do contributes to the fulfillment of a dream. We are a diversified investment venture capital firm; ... Biogenerics interests are primarily in companies which have solid proprietary technology in Application and Platform Software, Telecommunications and Fibre Optics Technologies and Biomedical Technology ... Biogenerics also takes advantage of special situations ... including oil and gas, mineral resources and precious metals." (From here: kerryassociates.com/biogeneric.htm) Well, that is pretty ambitious. Here are some more specific plans for a commercial website:
| http://www.siteherbs.com/newsletters/issue26.html
You can visit the result here, and order your herbal remedies for weight loss, varicose veins, virility problems, etc.:
| http://www.thinkbiogenerics.com
This business activity, I presume, is not actually related to the current structure named Biogenerics.

Biogenerics has been the subject of serious promotion. For their promotional efforts, GMCR (which publishes an investment newsletter and real time alerts) says that it received 30 million free trading shares in July and August 2005 from Primequest Financial. If they can could gain just 5 cents per share, that be a million and a half $ (US) for their efforts!

The money people behind Biogenerics appear very focused on the domain of ... well, making money! But how they will do this: by building a company or by dumping stock? Are they good at what they do? Will other stockholders benefit?

Now, for the positive aspects. The associated company National Detection Clinics now has new management--while I have not looked into this company, MRS Sciences may have played the role of an early stage venture capital firm. MRS Sciences also invested in Strat Petroleum (SPRL on the pinks), a small company attempting to build an oil and gas business in Russia. MRS Sciences management does not appear to have been involved with the management of Strat, but was simply an institutional investor.

This paragraph is somewhat of an aside, but I have run across two interesting articles about Strat Petroleum. The article entitled "This Little Pinkie Went To Market" is found on a number of sites, even as far away as the UK:
| http://tiscaliuk.co.uk/article-detail/This-Little-Pinkie-Went-To-Market
It contains good information about investing on Pinksheet companies and why this is a very risky affair. The article is worth reading. It also contains a clever plug for Strat. The author doesn't even say he has bought Strat, he is just keeping an eye on the company. But he goes a little overboard when he says that Strat's "Board of Advisor’s is a virtual Who’s Who of industry leaders ..." And just who is this author, Steven Hastings of the UCD Investment Club? I can find no other Web reference to him or to the so-called "UCD Investment Club." The second article, "Orthodox Jew Next Oil Baron?" by Howard Bloomberg, has spread all over the Internet, even to special interest sites like www.americansforjews.org. Google finds several hundred references. Here is one:
| http://www.commodity-trading-web.info/articles/orthodox-jew-next-oil-baron.shtml
The article is an interesting profile of Strat's creator. But who is this author Howard Bloomberg "who has written more than 25 how-to Books for financial professionals" and "was instrumental in the discovery of candlestick pattern trading?" Perhaps he published his books under a pseudonym, because I cannot find trace of them in the U.S. Library of Congress catalog nor on Amazon. And while I'm not a trader, I thought candlestick pattern trading is an old Japanese method, popularized in the West by Steve Nison. These two articles are examples of good promotional material, but I still have the feeling they walk a fine line between creative promotion and outright misinformation.

For me, the principal point in favor of Biogenerics is its "management team":
-> E. Peter Rowe
-> Jean Claude Bonhomme, and
-> Ian M. Colquhoun.
They are directors of Biogenerics. Here is Biogenerics' description with some biographical information for them:
| http://www.bignltd.com/pr/20041130.html

From what I have found on the Internet, they are serious people, with real experience and expertise in the O&G industry of Western Ontario. Here are some references. Bonhomme's take on Biogenerics is found in this PR interview:
| http://www.bignltd.com/pr/20041206.html
Rowe was president of the Ontario Petroleum Institute, and he gave this interesting overview of the Ontario industry in an address reproduced here:
| http://www.ontpet.com/news.htm
Colquhoun is an expert on the geology of Western Ontario. Here are descriptions of some his publications on the subject.
| http://www.ontpet.com/publications.htm

Rowe and Bonhomme managed Rubicon Resources, whose assets have been bought out by Biogenerics. The three form the management of Biogenerics partner Tyche Energy (formerly 2021877 Ontario Inc): Tyche is President CEO and Director; Bonhomme is Executive Vice President and Director; and Colquhoun is Vice President Exploration. Despite all the press releases about Tyche's activities, I have not been able to tell whether they have completed a producing well.

Hydroslotter technology appears to be the real thing. It was one of the 13 projects chosen by the U.S. Stripper Well Consortium for 2005:
| http://www.pttc.org/tech_sum/ts_v11n1/ts_v11n1_22.htm
There is some additional information about this technology scattered around on the Internet.

Biogenerics has announced a "strategic partnership" with Hydroslotter Corporation of Toronto, and has during 2004 and the first half of 2005 reported investing nearly $283,000 in Hydroslotter. The relationship is not exactly clear--does Biogenerics now own part of Hydroslotter? Does it have a license or preferential access to the technology? Biogenerics has announced the successful hydroslotting of a northern California well, plans to rapidly hydroslot four more, and ambitious plans to hydroslot at least 120 wells during 2006. But the Biogenerics press releases do not make clear who actually owns the successful well. How much will Biogenerics receive from this well, or how much was Biogenerics paid for the workover?

To sum up, Biogenerics is associated with some good Ontario oil people and some very interesting technology from Russia. But management also has some uninspiring associations. Perhaps these venture capitalists have come across the real thing and are going to build a great company. I am interested, but before investing I would like more specific information. I will also wait to see if the current price spike dies down a bit."





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