Thanks to CALIFTALK we are moving ahead. Subject: Re: Results now positive
Date: Fri, Aug 28, 1998 01:24 EDT
From: CALIFTALK
Message-id: <1998082805242000.BAA13576@ladder03.news.aol.com>
Current report of Oilex Inc.
We have started the process of filing lawsuits
and using the reorganization protection of the Federal Courts
to begin the path of allowing Oilex to recover assets and rescind
insider transactions. This starts the rebuilding process.
We are now preparing to refit the best wells in the Bigfoot field to produce
30 days per month on the jack pumps. It is anticipated that the four best wells alone
can average approx 6 to 7 barrels per day or total 180 to 210 barrels each per month
or 800 barrels total from the four wells and at $10 per barrel total $8,000 per month,
which would recover the refit investment in four months. Then we can improve the
next four wells and continue the production process. When the price of oil increases
we will have built the foundation to profit. Equipment costs are very affordable at this
time.Bigfoot is capable of having a number of wells producing daily on jack pumps.
The swabbers will be used on marginal low producing wells and will add approx
50 barrels daily at Bigfoot above the production of the eight wells going on jack pumps.
Our goal is to make results on the ground and become cash flow positive.
Then the company will have real value.
We are not interested in telling make believe stories to build demand for the shares.
Then while the hype of the previous management was being released,
Burditt was selling shares using a broker in Canada . This continuing activity
depressed the shares despite all the favorable news releases, as the supply Burditt
put on the market exceeded the demand.
Timmins held the bulk of his shares approx 6 million pre reverse split which
at one time had a valuation of approx 6 million dollars,
but today after the 20 to one reverse split is 300,000 shares with an approx
market value of $60,000. He did not purchase the shares for cash.
Therefore his statements in the SEC 10K and 10Q reports that he and his wife were
not taking a salary until the company became profitable was not full disclosure
or the complete truth. After receiving the stock shares and also the royalty and
over ride interests, he and his wife had no need to draw a salary. And in addition
he was able to have his father in law and sister in law, be included in the newly
issued shares without the need to pay cash. The instructions to have the new
shares issued was a letter by Oliver Timmins, as President, and statement by
his wife as Secretary, that the Board of Directors had approved the issuance at
a meeting of the Board of Directors. BUT THE RECORD OF MEETINGS IS FALSE.
The other Directors where not at a meeting or in phone contact. As an example,
the claimed June 8, 1998 meeting held in Houston attended by Oliver Timmins and
his wife, where the last 2,550,000 shares for services was approved, did not and could
not have occured, as Timmins and his wife had not returned to Texas from the hospital.
The meeting was held only in the imagination of Burditt, but Timmins and his wife
went along with the falsehood, as they wanted the 1 million personal gift shares.
As was stated in previous posts, after a furious argument, the three directors rescinded
that share issue. The vote to rescind was by motion of Saul Yarmak, the newly elected director, together with votes by Oliver Timmins and Richard Clark. The dilution of an
additional 2,550,000 shares requested and planned by Burditt was stopped. Thereafter
Burditt stormed out from the meeting, and Timmins resigned as President.
Shortly thereafter as more details were discovered of wrongdoing, Timmins resigned
as a Director.
The game is over. Now starts the recovery and the restitution.
Now the shareholders have an opportunity to build and develop a real company with
the assets acquired in the prior two years but never developed. It was more profitable
to pump the stock market then pump the oil fields. The assets were acquired when the shares were valued at approx one dollar per share in exchange for Oilex shares.
Today 20 shares once worth $1 or a total of $20 is now one share valued at 20 cents.
Thus the assets fully support a postive approach at todays market prices ,
but are not supportive of the investors that have the $20 investment cost basis,
which today is valued at 20 cents. Or a loss of 99 percent of their capital.
My goal is to build from here and recover assets and build a company on the foundation
of developing the existing potential of our producing oil fields and holding and possibly
adding to the royalty interests in Australia that alone can add substantial value to the company.The royalty assets in Australia were purchased for 2,250,000 shares of Oilex
shares when the market price was $1 per share. Today the seller has 125,000 shares
worth $25,000. He is not a happy seller. He wants the company to survive and prosper
and increase in market price. And the royalty asset has produced and is producing
monthly and quarterly cash income that continues to have the potential to increase
as new wells are added. This acquistion alone can, "make" the company.
I want your support and confidence in our difficult rebuilding process.
Thank You
Saul Yarmak,
Chairman of the Board and President of Oilex Inc |
