Pilgrim Petroleum Corp. (PGPM)

[awesomebummer]

Answer: I don't know.


Three steps below with many things in between.

We went from this (thanks to Rex rick):

(1) PILGRIM PETROLEUM CORPORATIONNOTES TO FINANCIAL STATEMENTSDECEMBER 31, 2007C. Significant EventThe company sold eighty percent (80%) of its’ net remainingproved undeveloped reserves in March 2007. The Company receiveda note receivable in the amount of $1,640,000 and received stockin the acquirer in the amount of $40,000,000.

Pilgrim Petroleum Announces General Energy Corporation Signs LOI For North Texas Oil Exploration Project
February 27, 2007
Irving, TX - General Energy Corporation recently announced the completion of a Letter of Intent ("LOI") to purchase 80% Working Interest (NRI 61%) for prospective oil resources in North Texas properties with leases covering a total of approximately 12,500 acres owned by Pilgrim Petroleum Corporation. The transaction outlined a sale price based on Pilgrim's Net Present Value of $52.05M. The total price equivalent for the transaction will be $41.64M; which will be paid in cash and stock on closing. A definitive purchase agreement will be completed within 30 days.
The execution of the Letter of Intent will allow the completion of the first phase of the North Texas Drilling Program, which is expected to access over $102,370,000 in probable reserves. According to a Reserve Evaluation dated September 15, 2006, undertaken by Gustavson Associates, over 1.8 million barrels of oil are potentially recoverable and economic.
Pilgrim's Chief Executive, Rafael Pinedo, commented, "We continue to focus on increasing production capacity and we look forward to re-affirming Pilgrim's commitment to identify and negotiate attractive acquisitions of oil and gas properties with an exploitation upside."


(2) Somehow to a $10 million note.


(3) To this: "557,783 Shares Preferred (note interest + small portion principal) + $2,400,000 Cash by July 31st 2012
Convertible to 8,924,528 Shares Common ACLY!" I estimated the value of this deal around $3.7 million.

So, if true, there has been a 75% plus devalue, and then another devalue of over 60%. I do not know all the steps in between, but clearly (to me) there has been "self-dealing."


'Bummer.