I suggest you all read the 10Q very closely!
This company is desperate and anyone buying now is going to get wiped out!
TE 11 -CONTINGENCIES
A complaint was filed in the second judicial district court in Washoe County, Nevada by Avasha Group, Ltd. ("Avasha") on November 18, 2009 (such complaint as amended November 23, 2009) against the Company and certain other unnamed defendants. Avasha alleges that on or about April 21, 2008, Avasha entered into private placement subscription agreement with the Company to purchase 500,000 units from the Company (with each unit consisting of one share of the Company's common stock and one-half of one stock purchase warrant, together, the "Securities") for a total purchase price of $500,000. Avasha alleges that it paid such purchase price to the Company but the Securities were not delivered to Avasha. Avasha alleges that it is entitled to delivery of such Securities, as adjusted to take into account subsequent stock split(s) by the Company. The Company believes that this claim is without merit and intends to vigorously defend this matter.
On June 2, 2011, R& R Rentals and Hotshot, Inc. ("R&R Rentals") filed a complaint against Mainland in the county court of the second judicial district of Jones County, Mississippi. R&R Rentals, which alleges that it is engaged in the business of furnishing equipment and services for use in oilfield work, alleges that it furnished certain goods, equipment and services to Mainland with a value of $73,500. R&R Rentals is seeking a judgment for $73,500 plus $24,500 as attorney fees. On October 11, 2011, the court entered a judgment in favor of R&R Rentals for the principal sum of $73,500, attorneys' fees of $2,500, and interest on the principal amount of 4% per year from January 1, 2011.
On July 29, 2011, Frank's Casing Crew & Rental Tools, Inc. filed a complaint against the Company in the County Court of Jones County, Mississippi, First Judicial District, alleging that the Company owed Frank's Casing $42,454 for services rendered under an oral material and services contract, together with interest thereon at a rate of 1% per month since March 11, 2011. The Company will review the claim and confirm the balance owing and discuss repayment options with the vendor.
On August 26, 2011, Richard E. Johnson, Inc. filed a complaint against the Company in the Circuit Court of Jefferson County, Mississippi, alleging that the Company owed Johnson $97,464 for purchases of fuel by the Company from Johnson. Johnson has also alleged that it is entitled to unspecified interest and attorneys fees. The Company will review the claim and confirm the balance owing and discuss repayment options with the vendor.
In June and July 2011, five (5) liens were filed in the real property records of Jefferson County, Mississippi, against the Company's Buena Vista project relating to alleged payments owed by the Company to five creditors in an aggregate amount of approximately $1,155,000. The Company anticipates the liens will be repaid from the proceeds of any financing or any participation of a joint venture partner in the Buena Vista prospect. The aggregate amount of the liens is recorded in the Company's accounts payable.
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