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Microcap & Penny Stocks : Aladdin Oil Corporation (OTC BB: ADDN) -- Ignore unavailable to you. Want to Upgrade?

To: White Knight who wrote (3)	7/5/1999 2:36:00 PM
From: Glenn Petersen	Respond to of 16

The old shareholders of Buffalo have been generously compensated for the public shell. Per the merger agreement with Aladdin, these shareholders retained 406,099 shares of the common stock of the new ADDN, currently trading at $3 per share. Total value: $1,218,297. Additionally, certain of the Buffalo shareholders received $125,000 as payment for the Class A and Class B warrants that were outstanding prior to the acquisition of Aladdin. Total compensation: $1,343,297. What was the total investment on the part of the old Buffalo shareholders? Including stock issued as compensation for services: $49,890. 4,500,000 shares valued at $25,400 issued as compensation for services. 120,000 shares sold for cash for a total of $7,500. Additionally, it appears that certain of the Buffalo officers picked up expenses totaling $16,990. These expenses were appropriately booked as paid-in-capital. When you consider that Buffalo was not incorporated until September 1997, this represent a rather hefty return. All this for a company that never had any operations. It also appears that the stock of Buffalo never actually traded. Per the PREM14C, "Although Buffalo's Common Stock is approved for trading, no reported transactions have occurred, and as a result, there are no bid or ask prices to report."

To: White Knight who wrote (3)	7/5/1999 11:25:00 PM
From: Glenn Petersen	Respond to of 16

A portion of the assets of Old Aladdin consist of certain undeveloped "...exploration sub-surface easements within the Los Angles Basin of California, which encompass several portions of the producing Salt Lake Field." Additionally, the company owns interests in 16 natural gas wells in Ohio that were acquired from Industrial International, Inc. in exchange for the issuance of 419,219 shares of the common stock of Old Aladdin, which have subsequently been exchanged for a like number of the common shares of ADDN. These shares have a current value of $1,257,687. At December 31, 1998, the proved developed reserves for these wells consisted of 4,565 barrels of oil and 261,581 MCF of natural gas. The standardized measure of discounted future net cash flows from these wells was calculated at $396,783 as of December 31, 1998.