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[was CA$H]

Matt and this post was removed for spam from the MOSH board too........


WTH???

Posted by: OTC BB King
In reply to: None Date:12/17/2007 12:22:15 PM
Post #715 of 738


***Excellent Summary Post*** =>

I'll give you the readers digest version.

MESA spun off some working and non-working properties way back when to MESA shareholders. They placed these in a Trust. Later MESA merged with Parker and Parsley and changed the name to Pioneer (PXD) kicking Boone to the curb when they did. JP Morgan acquired the old Trustee and became our "protector". Several problems pop up. Pioneer hated the Trust and has been trying to kill since day one by strangling our properties and cash flow. Without cash flow the Trust would die as per the original indenture. Unfortunately, Pioneer drilled a well on our property and hit a huge gas pocket. The drilling partner Woodside announced as much over in Australia while Pioneer kept quiet here in the States. Oops.

Our Trustee, Mike Ulrich, was a typical do-nothing silk stocking banker who rubber stamped anything placed in front of him. Pioneer has been sitting on the discovery withholding production which would keep the trust alive but because of Ulrich looking the other way and not acting in a fiduciciary manner almost allowed Pionner to kill the trust. We sued before that event could happen.

Legal wranglings aside, we asked the Trustee to step up and fight for us. He didn't because he was conflicted. It seems JPM had a $1.5 Billion dollar unsecured line of credit issued to Pioneer which could be compromised if JPM the Trustee sued a current client of JPM the Bank. Hmmm. The plot thickens.

JPM got smart and decided to get out of the gunfire. They settled with the Trust, extended us some dollars to continue operating and agreed to resign as Trustee. Why not? They weren't doing anything anyway. When they announced their resignation and terms (which are subject to court approval) they effectively dipped Pioneer and Woodside in the grease and allowed the Trust to continue pursuit of its claims against our so-called "partners" who have been screwing us all these years. The lawsuit is simple: They found gas on our lease and they're sitting on it. All we want is our royalty money. What's the discovery worth? Who knows but it was estimated at $1.2 billion. I'll let you do the math.

Any questions? Read the documents on your own time because it's taken me, and I'm sure my buddy brazos, hundreds, if not thousands, of hours understanding the issues.

What's the chance of success? It's litigation. Flip a coin. But if I was Pioneer or Woodside, I'd be a little nervous. One making an announcement of a major find and the other saying nothing smells really bad. We asked for actual damages of $1.2 billion. If a jury believes the unitholders have been screwed, they can assign exemplary / punitive damages on top. What would you do if you were standing in the shoes of Pioneer or Woodside? I'd find a number everyone could live with and settle. Then I'd complete that damned Midway well and try and recover my money.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_M/threadview?m=te&bn=36681&tid=277&mid=279&tof=7&frt=2#279