Gary, what is a reverse split. What does it do to the stock?
Would this company could fall into the shell cat? By way of reverse split.
On January 9, 1998 the management of Oilex, Inc. (OTCBB - OLEX)
announced a reverse split of its common stock of 20 to 1. The new cusip number is 678034 20 8 and the temporary trading symbol effective January 26, 1998 is OLEX D. This reverse split, management believes, will facilitate funding efforts,re-establish a market price that is identifiable with corporate assets, company goals and management's future expansion plans. This is one of the many steps management has taken to facilitate a NASDAQ small cap market listing in 1998.
As a development stage company, the re-alignment of our capitalization in relation to its increased asset base, management feels, makes OLEX a candidate for additional equity financing and provides a rational basis for potential growth through acquisitions or mergers. The corporation plans to elevate its listing status from Bulletin Board to NASDAQ SMALL CAP as early as possible during 1998. Currently OLEX has 18 employees, approximately 4,000 shareholders and assets of $13,600,000 (as of 9/30/97) versus assets of $9,000,000 as of year end 1996, approximately a 30% growth in its asset base.
In 1998 OLEX will finish completion activities and bring into production its first four new infield wells that were drilled in late 1997 on its Big Foot field. On its Texas oil fields: Big Foot; Luling; Revilo; and Walker Queen, the company anticipates spending additional funds in 1998 to drill new infield wells, remedialise existing wells for portable swabbing, buy additional portable swabbing units and other equipment as required. Management believes these expenditures will increase production while enhancing cash flow. Also, subject to funding and increased positive cash flow, the company plans to initiate a three year direct development and drilling program on its 83,000 acres of fee interest in West Virginia.
Privately owned Phoenix Reserves, Inc. (Phoenix) acquired its interest in OLEX in 1994. At that time, OLEX had minimal assets, zero acreage, a small interest in five wells (which OLEX did not operate), limited market for its stock and no corporate direction. The investments by Phoenix in OLEX proved to be a turning point toward the company's major growth during 1995 and 1996. With the investments, OLEX
has been able to acquire approximately 600 wells in Texas, a fee ownership of 83,000ñ lease acres in West Virginia, and 13,000ñ acres in White River Dome, Colorado. OLEX's practically debt-free status is accountable to Phoenix's investing nearly $2 million dollars cumulatively during 1996 and 1997. OLEX
owns outright all of its trucks, trailers, portable swabbing units, inventories, pipelines, tank storage facilities, four fully equipped and operational field offices and approximately 11 acres of land in Luling, Texas, where OLEX maintains its Another gem negotiated by Phoenix in 1997 that directly benefited OLEX and its
shareholders is the overriding royalty interest on 35,000,000 ñ gross acres in Australia. There are currently eleven drilling rigs operating on this giant acreage position and OLEX receives its revenue free of operating costs. An additional overriding royalty interest of « of 1% was also negotiated by Phoenix on behalf of OLEX in Australia on a single adjoining 13,000,000 ñ acre block planned for development in 1998 by Titan Energy Corp. These interests are in Australia's oil
rich Eromanga Basin which is similar to the producing geological graben formations under the Middle East and greater in size.
In 1997, new legal counsel, accounting, investment bankers and investor relations were added while OLEX became a fully reporting company. This new tier of professionals will assist management in addressing future mergers & acquisitions, production, financing and joint venture opportunities. OLEX is pleased to announce that earnings forecasts will be forthcoming once field procedures and
cash flow are optimized and long term investment banking arrangements are finalized. |
