Replies to post #18110 on Pilgrim Petroleum Corp. (PGPM)

[rex_rick]

If you have (or want) to take the time to research the O&G records for the wells in question, here are some links. All of the info is available.

Cheeri00000000000’s

Wichita Falls - District 9 (map)
[phone]
5800 Kell Blvd, 76310


http://www.rrc.state.tx.us/

http://www.rrc.state.tx.us/data/online/index.php#

http://www.rrc.state.tx.us/environmental/plugging/index.php

http://webapps2.rrc.state.tx.us/EWA/orphanWellQueryAction.do

http://www.rrc.state.tx.us/compliance/orphanwells/index.php

http://www.rrc.state.tx.us/environmental/index.php

http://www.rrc.state.tx.us/data/operators/ogdirectory/index.php




Definition of Orphan Well:
A well that is inactive 12 months or longer and the current operator as reflected on Railroad Commission
records has a delinquent P-5 Organization Report.
Requirements for taking over an orphan well:
1) the acquiring operator must have an Active P-5;
2) the acquiring operator cannot have outstanding final orders ("639")
3) the acquiring operator must be a "bonded operator" (Opt 1 or 2 financial assurance in the form of a
performance bond, letter of credit, or cash deposit ) 4) the acquiring operator
must have sufficient financial assurance to cover the acquisition along with all
currently operated wells.
5) any P-4 holds placed on the well(s) by the Commission for non-compliance, must be addressed with the
appropriate Commission section (Field Operations, Enforcement, Well Plugging) prior to the transfer.
6) the acquiring operator must have (and may be required to provide proof of) a
good-faith claim to operate the well(s).
7) the appropriate forms to transfer the well(s) to the acquiring operator must be
filed with and approved by the Commission.
a. Two signature P-4’s- When the current delinquent operator’s signature can be obtained, a P-4
with signatures of the current operator and the acquiring operator may be filed.
b. Single signature P-4’s- When a signature cannot be obtained from the current delinquent
operator, a P-4 may be filed with only the acquiring operator’s signature but the acquiring operator must also
provide: a letter explaining why the prior operator has not signed (e.g., he cannot be found after a diligent search
or he refuses to sign) and documentation establishing that the acquiring operator has at least a good-faith claim to
the right to operate the wells(s).
c. Oil lease subdivision-If the acquiring operator is only taking over certain oil wells on an existing
lease and not the entire oil lease, in addition Form P-4 filing requirements, the acquiring operator must file a
Form P-6, before and after plats outlining the configuration of the lease, and a statement that no overproduction
exists on the lease.
d. Good faith claim to operate-For all single signature P-4s and for other P-4 transfers when
requested by the Commission, proof of good faith claim to operate the wells must be filed with the Commission.
Plugging & Compliance Responsibility:
Any operator who successfully acquires an orphaned well, acknowledges responsibility for the regulatory
compliance of the wells they are acquiring and for the proper plugging of the well(s) pursuant to Statewide Rule
14 through their signature on the Form P-4. Additionally, the acquiring operator assumes responsibility for the
physical operation and control of the wells, and acknowledges that they will remain designated as the responsible
operator of record until a new operator designation is approved by the Commission.
For Questions Related to: Contact: Phone Number:
Form P-5 or Financial Assurance P-5 Section [phone]
Form P-4 or Form P-6 Subdivisions Proration Section [phone]
Good Faith Claim to Operate Requirement Office of General Counsel [phone]
SB639 Holds or Enforcement Holds Enforcement Section [phone]
State Plugging Holds or Orphan Well List Well Plugging Section [phone]
Field Operations Holds Field Operations Section [phone]
NOTE: An operator adopting such wells from January 1, 2006, to December 31, 2007, may be eligible to receive certain
benefits, such as a payment from the Oil Field Cleanup Fund and/or an exemption from severance taxes and Oil Field
Cleanup Regulatory fees on future production from the wells. SEE Orphan Well Reduction Program.

[awesomebummer]

LOL, no problemo!


About what Matt said: "I have been informed that ACLY must settle its obligation to PGPM in order to complete an ACLY audit and to secure an ACLY underwriter for the Kumskaya Neft acquisiton."

This is in effect a gift to PGPM stockholders/interests, but not surprising. The unnamed investors/lenders are assuming huge risks, not just in dealing with a small, unknown firm in Arcland Energy Corp, but in where/how/when the funds are to be employed (Russia). Having every filing and documentation cleaned up, before lenders/investors finalize their substantial financial commitment, makes perfect sense.

I'll bet Ralph thought he could blow this "PGPM thing" off, or paper over it, or provide some token offer, and was stunned to find out he HAS to formally commit to fix it fully before he gets the Francs. If he stays consistent, the offer won't be very good in our eyes. But then, again, he has a timing problem, too. Its now pretty late in this LOI/financing game. And then there are those pesky accountants - just looking to make trouble! LOL, Sweet!