CoreStream Energy announced today significant changes in its management structure and a general update on some of its current business issues Print E-mail
Dear CoreStream Energy Shareholder,
CoreStream Energy announced today significant changes in its management structure and a general update on some of its current business issues. On April 26, 2011, Paul Niedermeyer resigned from his respective positions as a member and Vice Chairman of the Board of Directors of CoreStream Energy, Inc. (the "Company"). On May 1, 2011, Milton C. Ault, III tendered his resignation as a member and Chairman of the Board of Directors and President of the Company.
On May 1, 2011, the Board of Directors of the Company appointed Lewis V. Graham as a member and subsequently, Chairman, of the Company's Board of Directors. Mr. Graham was also appointed both President and Chief Executive Officer of the Company and will continue in his capacities as Chief Operating Officer and Corporate Secretary.
As last reported, the SEC temporarily suspended trading in the common stock for the period of March 31 to April 13, 2011. Subsequent to, and as a result of, this 10 day suspension, trading was resumed on the OTC Grey Market, which makes trading difficult for a number of reasons, including the lack of market makers. Currently the stock continues trading on the Grey Market under the symbol ZLUS.
From the day the Company learned of the unexpected suspension it has worked diligently to resolve the issues that led to and resulted from the suspension. Additionally, it has recommitted itself to building a first class, successful oil and gas company, and has redoubled its efforts to respond to SEC information requests in a timely manner.
Below are our updates regarding a number of key on-going items. We are committed to being as transparent as possible. With that in mind, here are our updates for your consideration.
We have been informed by counsel that the SEC is pleased that we have employed legal counsel to assist in our response to their inquiries. The SEC has provided current management with an updated status report regarding information it had previously requested in the later part of 2010. Both directly and indirectly, through the companies’ SEC lawyers, we continue to assemble the information requested and provide it to the SEC in an ongoing and timely manner.
With respect to re-establishing the Company’s trading on the Pink Sheets, the process requires the cooperation and commitment of a market maker. The market maker assembles the necessary forms and supporting materials for submission to FINRA to request re-instatement. A market maker has been selected and completion of the required documentation is in progress. At this time it appears that the submission might be accomplished as early as the end of next week. Too many factors, including the review and approval by FINRA, prevent a precise estimation as to when a successful re-instatement may occur.
An ongoing concern for us internally, and with the SEC, has been the late filings of Company audited financials. While the Company has been using its best efforts to close the gap and catch up, recent events have motivated CoreStream Energy to further accelerate the process. CoreStream has committed additional personnel and financial resources to expedite completion of 2010 10-Qs for the second and third quarters and the annual audit.
We continue working to complete our due diligence and to verify and evaluate the Kentucky and Tennessee well production data and the operating expenses upon which the original commitment to purchase 18 wells is contingent. A final decision and closure on the opportunity is expected to be made in the next few weeks.
With respect to CoreStream Energy’s initial successful oil well investment in State Lease #2 in Louisiana, the Company expects to receive production data from the General Partners in the near future. Well documents show it was officially completed for production on March 23. Recent flooding in the Mississippi Delta may have an impact on initial operations and production.
CoreStream Energy appreciates the interest and concerns of its shareholders and continues working to restore normal trading and to build a profitable energy-based company we can all be proud of. Please feel free to share this shareholder update with others. The Company will post this announcement on its web site as well.
Respectfully Submitted,
Lew Graham
CEO and President
