PGI Energy Letter to Shareholders PGI ENERGY, INC.
HOUSTON (PRBuzz.com) May 17, 2012 -- PGI Energy, Inc. (Pink Sheets: PGIE)
PGI Energy Letter to Shareholders
PGI Energy management team has taken an aggressive approach to restructure its business model and operations. The efforts led by Roger Smith, the company's CEO have resulted in a three point restructuring plan to get the company back on the right track. The plan started with a massive downsizing of operations approach, which has already resulted in reduction of staff, eliminating non-performing divisions and focusing on core operations. The board of directors has accepted the resignation of Lionel Johnson, CFO and has eliminated the post of C. Allen Robinson, President. The company has decided to eliminate its transportation & logistics division, its international commodities trading and commodities futures trading. The company will be relocating its offices and taking other steps dramatically reducing its overhead expenses. The management team admits that it took a very aggressive approach to grow too fast and was quickly approached by a number of JV partners that resulted in lack of investor confidence. We have eliminated PGI Energy Holdings International as the listing vehicle for the Frankfurt and Berlin Stock Exchanges, because the exchanges have eliminated the first quotation listing board that we were pending. We have continued efforts to get a market maker to quote our stock on the OTC pinks, but our efforts have been fruitless. Market makers have been reluctant to commit to filing our Form 211 with FINRA. Reports from our shareholders that they have been able to acquire shares through specific brokerages is an indication some brokerages permit trading on the grey market, while other have been more restrictive in the interest of protecting their clients. The company is not selling any shares and has no control over the trading situation. We have since examined the option of acquiring another public traded company, which may not be a US Company and presenting a proxy to our shareholders to exchange their PGIE shares for the shares of the new company. If we take this approach it will be costly and time consuming as we will need to retain SEC counsel to engineer the process. We are working to find a speedy resolution for the benefit of our shareholders. We have heard your concerns and understand your frustrations. The Company is currently working with institutional investment group to acquire a distressed oil and gas field asset through farm-in development. The investment group is evaluating the due diligence package. At a glance the asset value is approx. $154 Mil. Based upon reserve reports and the farm-in proposal is $20 million line of credit for acquisition of the asset out of bankruptcy. We believe the asset will repay the loan within 2.5 years and provide a revenue stream for 10 years to the company if the acquisition is successful. PGI would own 10% of the WI revenues in this asset. We are working on some strategic opportunities in the Green Energy Power field in Mexico and are hopeful that the projects will come to fruition. We hope to provide some significant updates as soon as developments materialize. Our focus for the future will be acquiring assets with significant upside through re-entry of oil and gas fields that once produced, but may have been abandoned by oil majors due to low production and infield drilling partnerships. We have also begun bidding on the delivery of refined fuels to industry majors such as railroad companies and small airline companies fuel needs domestically. This is a highly competitive business and we believe will be a good revenue stream for the company in the future. We are focused on the long term success opportunity for the company whether it is through the existing company structure or another. We must make our shareholders whole!
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