Special Shareholder Update
September 27, 2011
Dear Shareholders,
As I’m sure you are aware from our recent postings, we have been in a battle with the SEC over our filing status. As is customary for our federal government in their infinite wisdom, they will strain a gnat while swallowing a camel. The SEC suspended ARUR trading status on May 11, 2011 without due process or proper notice. We filed the necessary responses to their actions in a timely manner and the suspension was officially lifted but the investigation for revocation continued. After numerous written communications with the SEC and two telephone conference hearings with an administrative law judge, the SEC decided it was in the best interest of the shareholders to revoke ARUR’s trading status rather than allow us to continue to function as a public company while we work toward getting our filings up to date and thus return to current status. An initial order for revocation was issued by the Administrative Law judge on September 08, 2011. The final order for revocation will be issued and trading status will be revoked on September 29, 2011. I have extreme difficulty in understanding how it can possibly be in the best interest of the shareholders to severely diminish the capacity of a company to generate revenue and conduct operations. The current depressed state of world economic affairs has reduced funding opportunities to a minimum under the best of conditions. These additional burdens that have been placed on the corporation by the government have only served to increase that difficulty.
However, it is not in our nature to tuck our tail and run or to back down from a fight when the cause is just. And we certainly have no intention of changing that now. At the end of 2007, when the shareholders and directors placed their trust in me by electing me Chief Executive Officer and President, I accepted your challenge to do everything humanly possible to make American Resource Technologies, Inc. a viable and profitable company. Since that time, the other officers and I have worked work diligently without a salary toward achieving that goal. With the financial support of a small group of shareholders and private investors, we had made significant progress. We started with our largest lease tracts in Kansas and began preparations for an aggressive drilling program. Prior to initiating operations, we had to completely overhaul the production system for the lease. To access the property and the locations we had to first build over one and one-half miles of improved road on the lease. We had to upgrade the electrical supply and power grid and convert it from a 240 volt to a 480 volt system. This required new transformers, circuit boxes and disconnects and over two miles of direct bury electrical cable. We buried approximately four miles of new polypipe flows to accommodate oil and saltwater. After the completion of this overhaul, we were able to initiate a drilling program on the acreage. By participating in numerous joint ventures, we were able to drill and complete 10 commercially productive oil wells on this lease acreage. These wells are equipped and capable of producing oil in commercial quantities at this time. A disposal well failure in April of this year mandated the wells be shut-in until a new saltwater disposal facility could be obtained. We are currently attempting to arrange for funding for this new disposal facility.
In the third quarter of 2008, we began consulting with several foreign entities to establish on-shore energy projects in South America. We are in the final stage of obtaining all the necessary authorities and permissions to begin construction and operations. We jointly participated with a group of software architects to design and develop a new software for the interpretation of surface gamma ray data. Gamma ray surveys are an integral part of site selection for drilling programs. This new software has exponentially increased the accuracy of analyzing the data collected as well as improving the manner in which data is collected. The primary focus and incentive for these efforts and projects is to increase share value and profitability of the company. This focus remains the same.
The road will be a rough one and the obstacles are many in our attempt to achieve reinstatement. Until we are able to file all the required financials and be approved for reinstatement by the SEC, we will not be able to trade our shares on the open market. However, that does not prohibit us from continuing our efforts with the aforementioned projects. We will simply be operating as a private company until such time as we are reinstated. In the best interest of our shareholders and investors, we will continue to work on our filings and to pursue every current and future opportunity with the same zealous and fervor as in the past.
On behalf of the officers and directors, I want to thank each and every shareholder and investor for their faith and support. Without your support, our efforts would have been unsustainable. While this is a major stumbling block to our success, it is not insurmountable. With continued hard work and diligence and your continued support, we will overcome this obstacle and obtain profitability. WE must stay the course. We shall not be deterred.
Sincerely,
B. Fred Oden III
President/CEO
