Strat Petroleum Ltd (SPRL)

[Hurricane_Rick]

Speculation on James Monroe Capital's Financing

This is just my speculation, but by following the chronology and developments in some of the recent PRs from James Monroe Capital, it appears that JMCP intends on leveraging their recent purchase of the Ghanian gold mining company, Wales Holding Corp., to finance (at least part of) the $1,000,000 for the JV with Strat.

1. James Monroe Capital Creates a Subsidiary
Tuesday April 24, 1:42 pm ET
http://biz.yahoo.com/bw/070424/20070424006216.html?.v=1

Frank Love states, "We needed to create this subsidiary to place some assets in. The subsidiary was formed in the State of Florida. We needed the assets so that we could get favorable terms on our financing. The financing was used for our oil deals.

2. James Monroe Capital Enters into Talks with an Oil Company For a Possible Joint Venture
Thursday May 3, 11:59 am ET
http://biz.yahoo.com/bw/070503/20070503005875.html?.v=1

James Monroe Capital has entered into talks with an oil company that has up to $270 million dollars of unrefined crude.

Firstly, the oil company needed financing to obtain the processing equipment to be placed at the various sites where this inventory sits. This will be one of the terms that James Monroe Capital may have to fulfill. In addition, this may help shareholders understand the reason behind acquiring a gold asset.

3. JMCP Acquisition Inc. Completes Acquisition of Gold Company
Friday May 4, 3:59 pm ET
http://biz.yahoo.com/bw/070504/20070504005760.html?.v=1

JMCP Acquisition Inc. has purchased Wales Holding Corporation, the parent company owning, Wales Gold Mining Ltd.
Frank Love states, "This acquisition by James Monroe Capital brings us one step closer in realizing our goal of finalizing our joint-venture with an oil company.

4. James Monroe Capital Enters Into a Joint Venture With Strat Petroleum
Tuesday May 15, 7:05 am ET
http://biz.yahoo.com/bw/070515/20070515005140.html?.v=1

James Monroe Capital has signed a letter of intent to form a joint venture with Strat Petroleum for the processing of sludge in the province of Bashkorstan, Russia.

The terms of this joint venture require James Monroe Capital to provide initial capital funding of up to $1 million, in addition to support based on management expertise in order to capitalize on Strat Petroleum's ability to access several large reservoirs with massive amounts of oil waste/sludge.