To FARRIS,
We appreciate your quick response. The jefferson county lease and other assets traded by Phoenix for 8.7 million shares of oilex has a third party independent geological and engineering evaluation which estimated proven and non-producing reserves that could be produced from the Wilson#1 well bore of 28 billion mcfg/ and over 500 thousand bbls of estimated recoverable condensate. Phoenix spent in excess of $400,000 in it's attempts to place this well bore back into production on behalf of Oilex. As you know from your due dillegence all of this is disclosed in the Oilex audited financial statements of december 31,1995-96. At the time that Phoenix received 8.7 million shares of Oilex stock there had been no more than 25,000 shares of the stock that had traded in the public market in the previous 14 months at less than .10 cents per share. As stated in the SEC filings all shares received by Phoenix as the majority shareholder of Oilex were restricted(at that time restrictions were for 3yrs & subject to the dribble rules).
Additionally, at the time Phoenix acquired majority interest in Oilex in addition to having a extremely limited public market, the company came with minority interest(less than one half of one percent)kicking off less than $1500/month income. Through the efforts of Phoenix, Oilex now has in excess of 600 oil wells in Texas under approx.10,000acres of leases. It has 4 fully functional and paid for field operations.It has a 35 million giant ORRI in Australia. It has a 84,000 acre FEE acreage position in West Virgina. IT has 13,000 acre ORRI in White river Dome Colorado. It has approx. 15,000 acres of oil and gas leases in Utah. It has entered and gone through a learning curve and paid for 7 swab units to enhance and to make more efficient use out of the wells and reserves Oilex owns, In Big Foot field, Walker Queen Field, Revilo Unit and the Luling Field to state just a few of the items Phoenix has negotiated and assited with the payment of these properties.
Oilex is a development stage company. What has been acquired and placed on the balance sheet of Oilex in the past 18 months I feel is short of miraculous. 1998 with the recent infield drilling of four wells in the Big Foot field, the addition of 2 new swabbing units and our other positive activities should prove to be a very good year for all Oilex shareholders.
Also, when oilex moved into offices at 3050 Post Oak Blvd in May of 1996 Phoenix PAID IN ADVANCE FOR ONE FULL YEARS RENT by check. By the way the auditors did see this check.
We thank all of our shareholders for their support and interest in this development stage company now and into the future.
Merry Christmas to all and a Happy New Year,
Omar and Oilex Management |
