SOME DD
So this is a start up company that is risking itself to find oil and natural gas wells? Info will be shared from the latest report.
Liquidity and Capital Resources
As of May 31, 2011, we had cash of $3,322 and a working capital deficit of $363,263. Our accumulated deficit from inception to May 31, 2011 was $3,891,899. Our net loss of $77,822 for the six months ended May 31, 2011 was mostly funded by funds raised from equity financing since inception. However, for the six months ended May 31, 2011, we did not raise any funds through the sale of our equities nor did we raise any funds through equity financing during the same period in 2010. However, we did receive $59,825 in loans. During the six months ended May 31, 2011 our cash position decreased by $7,917.
Business plan?
We intend to build our business through the acquisition of producing and exploration stage oil and natural gas wells, interests and leases. Our strategy is to combine the secure and reliable revenue source of operated and non-operated interests from producing oil wells with the higher risk development of oil and gas exploration projects. For the next 12 months (beginning August 2011), we plan to purchase additional operated and non-operated interests in producing oil and natural gas properties, to acquire additional exploration stage properties and carry out an exploration program on the acquired properties. We are not involved in any bankruptcy, receivership or similar proceedings.
"We expect to require approximately $1,000,000 in financing to continue our planned operation and exploration over the next year plus another $1,000,000 to cover our other operational expenses."
How will they use that money?
Retain a full-time engineer and a full-time geologist, conduct preliminary evaluation of potential exploration stage oil and gas properties for acquisition, and Select and appoint a new Board member.
Guess what...the plan is to appoint a new Board member WITHIN 6 days from today!
A director of this company apparently owns a company that is working with MASS--he has financed this company $37,000.
Anything negative ?
"We generated revenues of $1,874 for the six months ended May 31, 2011 compared to $1,945 for the six months ended May 31, 2010."
"Our total expenses for the six months ended May 31, 2011 were $79,696 compared to $118,799, for the same period in 2010. The decrease in our expenses during 2011 was attributable to a decrease in our general and administrative expenses. Our general and administrative expenses decreased by $40,074 from $116,964 for the six months ended May 31, 2010 compared to $76,890 for the six months ended May 31, 2011. Our general and administrative expenses consist of professional fees, management and consulting fees, stock based compensation, bank charges, travel, meals and entertainment, rent, office maintenance, communications (cellular, internet, fax and telephone), courier, postage costs and office supplies."
Does this mean the managerial team is not performing well? Are they misusing the money being financed? Hmm...
This company has been skyrocketing since July 19, 2011.
Why the substantial increase in price recently?
-maybe they received a lot of financing?
-did we strike riches from interests in other wells?
-maybe this is an obvious scam?...or a longer term investment?
Apparently, this company owes a lot of money and its barely even investing that money into oil and gas properties.
What an attractive share structure though, huh?
After all, this is a start up company and it sort of seems like the managerial team is waking up from their vacations to only realize that they won't have any money if this company under performs.
Should we give them a second chance?...are they using paid promotions?...
