Baron: Can we attempt to clarify your SI Posts #20 and 26 which responded to questions I presented in my SI Post #17?
In your SI Post #26 you stated that "In the past there may have been a correlation but it is now separated by the Grand Canyon.". This statement was made apparently in attempting to clarify Oilex and Mr. Burditt's involvement with Titan Energy in the past and to clarify if there is any present relationship. I'm not sure if I understood that comment so would like to give you a chance to clarify.
Baron, on December 24, 1997, I received by mail a promotional package of materials directly from the Oilex office in Houston. This package, mailed in an Oilex envelope and postage paid by Oilex, contained materials promoting both Oilex and Titan Energy. Contained in that package were a variety of documents regarding Titan Energy including press releases, company unaudited financial statements and other assorted materials. It is based on those materials that I ask the following questions.
OILEX PRINCIPALS ON TITAN ENERGY BOARD OF DIRECTORS?
On Page 6488 of the Standard Corporation Records dated Friday, July 11, 1997, Titan Energy shows the members of its Board of Directors to include R.G. Clark and O.H. Timmins, III. I assume these two individuals are the same Clark who is CEO of Oilex and the same Timmins who is President and Legal Counsel for Oilex. During what period of time were these two individuals on the Board of Directors of Titan Energy? Are these two individuals still members of the Board of Directors of Titan Energy? Is their service on the Board of Directors of Titan Energy as individuals or as representatives of Oilex?
40% OPTION OR OUTRIGHT PURCHASE?
On a glossy promotional sheet on Titan Energy Corp. under Recent Developments the following statement is made: "7/1/97 Oilex Buys 40% Stake in Funscape for $3.50 per share." I understand that Oilex stated in their January 27, 1998 letter to shareholders that a two year option to acquire 40% of Titan had been "unwound".
We are still confused about this on-again, off-again deal. If it was only an option which could still be unwound, why did Titan Energy publish in promotional materials that in fact Oilex bought 40% of the company? Can you clarify the chain of events on this proposed and/or actual purchase by Oilex of a 40% interest in Titan Energy? What was Mr. Burditt's specific involvement in the negotiation of this transaction?
ALLEN L. BURDITT, II CONSULTANT TO TITAN ENERGY?
In the July/August 1997 issue of Equities Magazine, there is a featured article entitled "The Birth of Titan Energy" by Susan Rodetis. This article contains a photograph of Allen Burditt and includes the following statements:
""I wish we could manufacture them faster," wryly admits mover and shaker Allen Burditt III, a key investor and consultant to the company. An experienced energy industry hand, Burditt is working actively with Titan to develop the company's business portfolio."
"Burditt initiated Titan's first step into direct oil production through the acquisition of 4,500 acres within the Corsicana Field outside Dallas. This included 650 producing stripper wells atop 22.5 million recoverable barrels of oil." From whom did Titan purchase this property?
"An embarrassing blip interrupting smooth flying on Titan's radar screen was the recent withdrawal of a planned acquisition. "The relative share exchange values got out of whack,", explained Burditt. He believes the transaction had been targeted by abusive short sellers. Now, instead of Titan acquiring complimentary Oilex, Inc. (OTC BB-OLEX-0.40), that latter company took advantage of the shift in relative values and directly acquired an existing 40% interest in Titan."
In an undated article attributed to Funscape (showing a FAX line from Rife Oil Prop on 7/28/97) the following statement is made.
"Allen Burditt, consultant to the board of directors ..."
During what period did Allen L. Burditt, II serve as consultant to the Board of Directors of Titan Energy? Is he still serving in that, or any other capacity, to Titan Energy?
I truly appreciate the opportunity for you to clarify these issues.
Offie |
