I wish I could take credit for the following posts. I can't. They were posted on another board by Bronktru 03-14-2008.
Read them! Carefully! Save them and re-read them - not just for KGLJ but as general reference. You won't be sorry.
Post 1
Today I called back to the State of Kentucky Division of Oil and Gas Conservation. I explained my continuing interest in the leases, the SEC, etc., and then asked about production, and had them look up the leases...
The State says the lease operator is in good standing with the state, and has a total of 15 wells operating in the state, including the 6 wells in Morgan County that are the Kingslake property and wells. The leases in Morgan County that, at least in theory, belong to Kingslake shareholders... are not old enough to have production data. The state's production records only include 2006 and earlier...
The state does inspect oil and gas wells, so I gave him two of the older lease numbers, 101603 and 101620. He says they have not inspected # 101603, but did inspect # 101620 on November 19, 2007, reporting it as completed and shut in waiting hookup to the gas line to begin production. The STATE says the wells are there... I don't think the Kentucky Division of Oil and Gas Conservation is lying to me.
The story on the existing leases and the information I discussed earlier is still intact... here are the Kentucky lease numbers for them:
101603
101620
101914
101915
101916
102376
When I last talked to the operator, he confirmed the Kingslake story re the extent and potential of the acreage, the leases, the well completions, etc., and (the original purpose of my call) he confirmed that Kingslake was paying their bills, and he saw no problem in his continuing to do business with them.
I talked to the operator again today... he again assures me that the property and the wells are real. He is also aware of the problems with the SEC and expects it will all blow over... because he sees no problems of that sort with any highjacking of Kingslake... no problems with it existing by taking over an empty shell and operating some one else's company, etc. He says there are people behind it with big money... he knows who they are... and he still expects Kingslake should do well, given time and patience.
He was careful to point out that he knows oil and gas as a field man... not the ins and outs of share structures or the legalities of company compliance...
I'm convinced that the properties are real, the wells DO exist according to public records and competent legal authority. Everything is on the up and up as far as the State of Kentucky and the operators track record with them is concerned. It appears that the ASSET side of the story is intact...
Having the assets be real, however, and even having them owned by Kingslake... which I am still checking up on re the legal documentation of the transfer of lease ownership... doesn't mean that the obviously squirrely stuff happening with the stock should make investors feel comfortable.
The operator did say that they are waiting on additional $ from Kingslake to begin completion of additional wells... which might begin to cause a bit of cognitive dissonance with the story from Kingslake about the pace of progress... but this is the point, for me, at which the primary concerns lie... the differences between what is real in the field, and what a share of stock actually represents.
