Replies to post #763 on Bakken Resources (fka BKKN)

[LouisDesyjr]

There was something wrong


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=120272041

In a prior post, I questioned why it was taking so long to issue the 10K report, since there was only supposed to be just a few residual oil interests plus cash in the bank.

From the just release 8K report, it does look like there were all kinds of unreported problems in that Holms was paid for things that he was not owed money on, plus years of reports that may need to be looked at or restated.

It also calls into question if anything reported was true or not. One particular item is how much cash is really in the bank or was that misreported.

There was discussion on an earlier situation that he was involved in (late 1980s/early 1990s as I seem to remember) where he arranged for drilling and personally guaranteed the costs, only to have it turn out there was no oil on the land and he had nothing to pay the drilling costs with. (From my reading of the case, it looks like to me that he expected to finish the well and find oil fast enough before he would be called on to pay for anything. If oil had been found it all might have worked out. The problem was that the well was dry and the driller sued to get paid.)

While there must be some money there, since all kinds of money appears to have been paid to Holms that he was not due, the question is what was left over for the company in the bank.

Another fear I would have, is if Holms was willing to take the sums he did take, why would he bother to leave anything in the bank for the company? i.e. Why not just clear out the bank accounts to almost nothing and continue to report that the cash is still in the bank on the reports? This scenario would explain why the company seemed to be doing nothing with the cash on hand since the truth would be that there was not enough left to do anything with. It would also explain the delays in the filings since no one can find or 'understand where the cash is'.

Hopefully, except for what is in the 8K report, those are the only sums that are missing from the company and the 10Q and 10K reports will all be brought up to date.

Louis J. Desy Jr.