Petron Energy II Inc (fka PEII)

[Zanias]

I spoke with Rick from Investor Relations. (727-491-3911) If you would like to speak with him.

I asked if he could elaborate at all on the Bakken Shale deal. Basically their lawyer team found that Phoenix Energy did not in fact own a 5% interest in the bakken. It was less. Rick was not able to tell me how much less it was. He did say that the bakken deal would have been a minor contributor to their revenue stream. Only $10-12K earnings per month, which is small in the bigger picture of things. I feel like they took away that proverbial carrot on the stick and the falling through of this deal is a huge blow to my morale.
In regards to the S1: The SEC is still reviewing the S-1. It can take up to 90 days. He could not give me an exact time frame. Rick also said that S-1 Reviews take 90 days and that the SEC has been known to wait until day 89 in the past. Sooo February time frame? We don’t know. The S-1 financing will be used for expanding operations and acquisition of more leases… Me personally it sounds like more dilution on the horizon with no guarantees of revenue. With that being said there were notable increases in production on the Edwards lease as noted on the 15 Jan PR.
Rick had no update on the operations in Texas. They will come back online as soon as they are able.

Bottom line: It seemed like Rick felt the value in dollars earned from this Bakken deal would have been negligible. I personally feel like I have been taken for a ride. I’m going to sell my position today. I hope to see you all in the .001’s where I’ll double down. (Then again… it’s penny land… I guess anything could happen. )