Subj: status of Oilex
Date: 99-05-20 01:56:48 EDT
From: califtalk@aol.com (CALIFTALK)
To: califtalk@aol.com
(A question asked by Rick)
What about Oilex' future? Don't the shareholders deserve some sort of update? >>
(From California talk)
Oilex shareholders can only recover from lawsuits.
Burditt ran the company as a scam, in my opinion;and the Directors and officers were fronts
for him. They failed to give the shareholders a fiduciary responsibility.
Burditt grabbed $1,700,000 of the debenture money for his personal use, in my opinion.
And left debts of surprising amounts that kept surfacing.
The Texas Railroad Commission demands that wells not producing must be
plugged. Estimated cost $2,000 per well. I have reason to believe that at least
300 of the 600 wells should be plugged. That Burditt, in my opinion, had Oilex falsify records
sent to the Texas Railroad Commission to make it appear the almost all the wells
had some production.But in truth, I have reason to believe, that at least 300
wells could not produce from swabbing under any condition, and therefore
the plugging liability was at least $600,000.
That the rumor spread by Burditt of a short position to explain the constant
selling pressure on the stock was false. Instead the constant stock sales that
depressed the market price was newly issued shares of Oilex granted to Burditt or one of his alias companies , for little or no value.That is how and why the outstanding shares kept increasing, and then being sold as Burditt aranged, in my opinion, for touting of false
and / or misleading news releases or financial reports to pump the stock.
The company assets are being sold by the chapter 7 trustee.
The only possibility of value is to petition to convert to Chapter 11, if the creditors,
who will get close to zero from chapter 7, agree to accept 49 % of the stock in exchange
for their debts, and the existing shareholders retain 51 %, to allow the tax loss carry
to be used for the mutual benefit.
OR for the Government Agencies to finally take action and get some restitutution
for the shareholders. |
