Letter #2
August 3, 1998
Letter to Stockholders:
When MTEI opened its offices, June 1, 1998, this company owned certain properties of some value. These properties consist of minerals, and some surface, owned in fee.
The value to the company, ascribed to these assets, by management, is based on the price expected, when sold, for extracted minerals. These minerals may consist of coal, coal bed methane, oil, and natural gas.
This value is anticipated to be greater, than the value these properties will reflect, when entered on the company's balance sheet. The entry on the balance sheet must be equal to the amount MTEI paid for the properties.
Company strategy is to use the value of assets to assure incurred debt, at a ratio of 4 to 1 (25% of asset value), and use the resulting funds for operations. To that end, a respected engineering firm was engaged to determine demonstrable market worth for extractable minerals.
Due to existing workload, and/or other progress was not at a pace MTEI deemed consistent with its establised time frame, after more than a month of effort. With due consideration, MTEI and the firm of engineers, mutually agreed, without recrimination, that the interests of each party would be best served by cancellation of the letter of engangement and ending the association.
An MTEI staff member was dispatched to West Virginia, where the properties are located, and interviewed other engineering firms. The result of those interviews, and other communications, is an agreement in principal with Dunn Engineers, of Charleston, West Virginia. A contract has been completed and is in place by end of business, this date.
We expect and it has been agreed that, evaluation will begin immediately. MTEI is concerned that the process be expedient. Delayed operational funding could be detrimental to Mountain Energy's goal of acquiring properties during the current low cycle the energy sector is experiencing.
Contact: Vivian Overstreet
Public Relations Manager |
