"The debentures were done to finance the drilling." says Ajay.
But, the 10QSB SEC filing by the company on November 21, 1997 might give reason to question that statement. I admit I am no accountant, but the following information from that filing raises questions in my mind.
STATEMENT OF CASH FLOWS (Unaudited)
For The Nine Months Ended Sept 30, 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(1,360,852)
Adjustment to Reconcile Net Loss to Net
Cash Provided (used) by Operating Activities:
Common Stock Cancelled for Services Not Performed ( 100,000)
Common Stock Issued for Services 12,500
Depreciation, Depletion and Amortization 28,754
Changes in Certain Assets and Liabilities:
Increase in Due from Related Parties ( 214,254)
Increase in Prepaid Expenses 11,503
Increase in Accounts Payable and Accrued Expenses 156,542
Increase in Amounts Due for Oil and Gas Properties 130,000
Increase in Due to Related Parties 738,389
Increase in other receivables ( 116,500)
Net Cash Provided (Used) by Operating Activities ( 714,098)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in Oil and Gas Properties ( 132,500)
Purchase of Marketable Securities ( 200,000)
Increase in Deferred Tax Liability ---
Purchase of Furniture and Equipment ( 67,120)
Net Cash Provide (Used) By Investing Activities ( 399,620)
CASH FLOWS FROM FINANCING ACTIVITIES:
Retirement of Treasury Stock ( 350)
Cancellation of Preferred Stock ---
Issuance of convertible notes 1,124,709
Net Increase (Decrease) in Cash and Cash Equivalents 10,641
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 14,630
CASH AND CASH EQUIVALENTS - END OF PERIOD 25,271
Like I said, I'm not an accountant so have no ideas what these numbers really mean. If in fact the company received all that debenture money, it would appear that all of it was already out the door by September 30, 1997. After all, the total change in cash or cash equivalents on hand was a grand total of $10,641.
And, I do find it very interesting that a total of $952,643 seems to be tied to "related parties". These must be the same "related parties" that keep coming up in other SEC filings in major financial and stock transactions with Oilex.
These must be the same "related parties" that Omar, Baron and the Management of Oilex refused to identify during my questions on their identities in earlier posts.
Maybe the company could clear all of this up with an explanation in plain language that all of us non-professional investors can understand.
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