Mesa Offshore Trust (fka MOSH)

[stervc]

MOSH update from Mike Ulrich…

On Friday, 11 Jan 08, Mike Ulrich, the previous Trustee, called me back. He was very nice and courteous. I guess what I am about to tell you is nothing new, but I will share just in case something I mention might yet still be unknown to some people.

Mike told me that the Trust was supposed to have terminated at the end of 2004, but didn’t because of four off shore blocks of land in New Mexico. From my understanding of what Mike told me, shareholders were going after to sue Chase and the Operators of the property (Pioneer & Woodside). That action caused the termination of the Trust to not take place.

Since I was rushing to get to a military retirement function (heck, not mines) when he called, my hand writing wasn’t the neatest so I hope what I did interpret thus far is on track. Basically he gave me a very condensed explanation of the situation as we know it from reading the board, but here’s what I thought was interesting.

Mike mentioned to me that there is a very good chance that a deal will be reached between the two parties of the shareholders as the plaintiff and Chase as the defendant. He said that with that deal, Chase will be paying the legal fees that the shareholders were out of and that it will be a break even deal for this first case with Chase.

However, he said that the case with suing Pioneer and Woodside would be much different. From talking with Mike, he seems to think that there will definitely be a settlement that Pioneer and Woodside would be bringing to the table that would be much lower than the $1.2 billion that is being sought after.

Mike seems to think that it will be somewhere in the area of 20% of the $1.2 billion settlement request. This would mean a total of $240 million to be offered as an option for a settlement to keep from going to court. Mike also confirmed that whatever the amount, all of it would be issued to the shareholders since it’s a Trust. To get an idea as to what that amount would do for “potential” valuation of MOSH, please use the post below to substitute key variables to derive a “potential” assessment:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25906956

Mike felt confident that Pioneer and Woodside “DO NOT” want this is in court. Mike mentioned that they would not feel confident that 12 Jurors would see things their way. Mike told me that he feels very confident that they will be bringing an offer to settle to keep it from getting to the courts.

Mike did also mention that if a settlement outside of the court is not agreed upon, then it could be something that would take a while for closure. I think what’s key to understand, is to know to not try to trade based on any future court dates. Because if from this upcoming hearing it is mentioned that the next court date is somewhere out in the future, there is a good chance that a settlement could be reached well before any dates out in the future. Hopefully greed doesn’t set in as all parties will be objective with each other.

Mike told me that I could call him anytime. If there are any other questions that are in need to be answered, I will call Mike back to try to get them, but I think it’s better to wean Mike out of this and to establish a rapport with the new Trustee. I hope this update has helped.

v/r
Sterling