from 1.5$ to 1.5 cents within 3 months
not bad huh what a diseaster haven't read such a dismal PR for a while
DALLAS, TX--(MARKET WIRE)--May 29, 2007 -- PrimeGen Energy Corporation (OTC BB:PGNE.OB - News) ("PrimeGen" or the "Company") today announced significant corporate developments.
Since PrimeGen's inception as an oil and gas startup company, management has been attempting to obtain independent financing in order to proceed with the orderly development of the projects in which the Company was successful in acquiring varying interests. Such projects include the Fayetteville, Arkansas project, the data analysis and development project in Kansas, and the revenue sharing project in the Manyberries area of Southern Alberta.
The Fayetteville and Kansas projects were acquired through the issuance of promissory notes to the vendors of the projects and it was the Company's intention to repay these amounts with revenues from resulting operations. The amounts due to the vendors are $2,500,000 (Fayetteville) and $675,000 (Kansas), plus interest at 6% from the date of the respective acquisitions. Significant additional capital is required to develop these projects.
The Manyberries project requires the Company to advance development funds in order to earn an interest in the resulting gas revenue earned by MB Gas Inc.
The Company was unable to independently fund its Fayetteville-related cash calls, including those related to the land integration process, with the result that the property vendor was obliged to provide the interim funding required in order to maintain the interest unimpaired.
The same was true for the Kansas project, and the vendor of that project agreed to temporarily provide minimal interim funding in order to keep the project operational.
To date the Company has been unable to advance any funds to the Manyberries project.
As at March 31, 2007, the Company had current liabilities of $3,839,613, inclusive of the Fayetteville and Kansas-related promissory notes.
Management has attempted to find partners or lenders willing to assist; however, due in part to the Company's recent trading performance, this task has proven impossible. Accordingly, it has been determined that a reorganization process must be initiated. As part of this process, PrimeGen intends to quitclaim and return the Fayetteville and Kansas assets to the respective vendors in consideration for the forgiveness and indemnification of and from all present and future liabilities related to the acquired assets. This process remains subject to the preparation and execution of required documentation.
In addition, it appears unlikely that PrimeGen will be capable of funding MB Gas and, accordingly, the Manyberries project is not expected to proceed.
At present and without any financing, the Company's ability to continue as a going concern remains in jeopardy. However, management is committed to reviewing all options available, including making all necessary changes and additions to the Board, with the aim of acquiring a viable business opportunity.
Mr. Glen Harder has resigned from the Board to pursue other opportunities. We wish him well and thank him for his work with the Company.
