Replies to post #15428 on Pilgrim Petroleum Corp. (PGPM)

[awesomebummer]

My questions - re: $10 million note.


Quote: "I have read many posts and received many emails of shareholders confused by the fact that a $40 million 3rd party valued asset is being sold for a scant $10 million...I also read posts and emails where shareholders seem to think they are going to receive money based on this asset sale. It is my understanding that this is not the case...Finally, before I receive any emails or read any public posts concerning a lack of disclosure on this matter one need only look at past financial reports not only from this company but also Arcland Energy. In addition past press releases gave some details to the exchange as well...The asset exchange Notes come due in a very short period of time and one of three things will occur: 1) Arcland will pay the amount in full and will retain the assets. 2) Arcland will fail to pay the amount owed and the assets will revert back to Pilgrim Petroleum. 3) Some sort of Arcland payment plan will be negotiated by a 3rd party and the Assets will remain in Arcland’s control for an extended duration as long as the payment schedule is maintained."

Questions: If (2) occurs, what are the assets in their entirety? Leases? with or without production?; and if so, how much? Also, please note the intent of having a third-party value assets is so there is a realistic value obtained. Perhaps, you mean these assets were indeed valued by a third-party, but one that was not independent and objective?

Because you are seeking financing for the purchase of wells, that seems to mean you have little confidence of Arcland paying cash, or very much cash. Or, you just don't know yet what they will actually do. Is this a fair opinion?

Good luck, and thank you for taking the time to post on here. Sorry it has been difficult for you. It has been for some of us, too.

It may be helpful going forward, to state to we stockholders to the effect: "here is where the Company is now, here is where we are going, and here is how we are going to het there..."

Gracias, AwesomeBummer.