Pepper Rock Resources Corp. (fka PERP)

[rex_rick]

Funny Read...Another Scam in the Making.

Cheers

On February 10, 2010 we entered into a joint venture agreement with Oxalis Energy Group, Inc., for an exclusive right to participate in Oxalis' natural gas project at the Adams - Baggett Ranch near Ozona, Texas. Under the terms of the agreement we have committed to investing an aggregate of $5,300,000 into the development of the property. The initial payment of $300,000 was used for the re-activation of two natural gas wells on the property and the acquisition of a 50% working interest in these wells. With each additional payment of $500,000 we will acquire a 50% operating interest in one of the remaining 10 yet to be drilled natural gas wells on the property which are subject to our agreement with Oxalis. None of these parcels, including the existing wells, are currently producing natural gas and there can be no assurance that they will produce natural gas. A description of this property follows.
ADAMS - BAGGETT PROPERTY
The Adams - Baggett Property is located approximately twenty five miles South of the city of Ozona, Crockett County, Texas and approximately seventy miles North of Del Rio, Texas. The entire area consists of approximately 21,000 acres divided into 220 parcels which either contain currently natural gas wells which will require re-activation or may be drilled to create natural gas wells, though we cannot be certain if these wells contain commercially viable reserves. The area to which we have acquired rights pursuant to the agreement with Oxalis consists of 2 existing natural gas wells and 10 properties on which wells may be drilled and installed for a total of approximately 120 acres.
The drilling activity in this part of Crockett County started in 1973 with the completion of a pipeline to the area. The field was originally developed on a 180 acre per well basis, which was subsequently reduced over time to the current 10 acre per well spacing as it was found that the wells had a small radius of drainage.
The prospective `Canyon Sandstone' formation in the Adams - Baggett Property consist of several depositional cycles of sudden energy increases followed by declines leaving a vertically stacked section of channel sands, bar sands and braided stream deposits inter-bedded with mudstones and lime deposits. The objective target of these prospective sandstones is to produce gas from approximately 4,400 to 5,000 feet. These sandstones cover the entire 21,000 acre area of the Adams - Baggett ranch and we plan on initiating a drilling program on each of the 10 parcels which have under agreement with Oxalis upon the delivery of funds which we are obligated invest.
http://ih.advfn.com/p.php?pid=nmona&article=42302696&symbol=PEPR

WE HAVE NO KNOWN RESERVES AND WE MAY NOT FIND ANY OIL OR GAS AND EVEN IF WE FIND OIL OR GAS IT MAY NOT BE IN ECONOMIC QUANTITIES. IF WE FAIL TO FIND ANY OIL OR GAS OR IF WE ARE UNABLE TO FIND OIL OR GAS IN ECONOMIC QUANTITIES, WE WILL HAVE TO SUSPEND OPERATIONS.
We have no proven oil and gas reserves. Even if we find oil or gas, it may not be of sufficient quantity so as to warrant recovery. Additionally, even if we find oil or gas in sufficient quantity to warrant recovery it ultimately may not be recoverable. Finally, even if any oil or gas is recoverable, we do not know that this can be done at a profit. Failure to locate oil or gas in economically recoverable quantities will cause us to suspend operations.



MANAGEMENT LACKS FORMAL TRAINING IN OIL AND GAS EXPLORATION. OUR BUSINESS, EARNINGS AND ULTIMATE FINANCIAL SUCCESS COULD SUFFER IRREPARABLE HARM AS A RESULT OF MANAGEMENT'S LACK OF EXPERIENCE IN THE INDUSTRY.
Our officer and director has no professional accreditation or formal training in the business of oil and gas exploration. With no direct training or experience in these areas our management may not be fully aware of many of the specific requirements related to working within this industry. Decisions so made without this knowledge may not take into account standard engineering management approaches that experienced exploration corporations commonly make.
Consequently, our business, earnings and ultimate financial success could suffer irreparable harm as a result of management's lack of experience in the industry.