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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: jamess who wrote (2227)	1/3/1998 11:16:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 4276

James,excellent description of how Reg S bandits,short againest the block. And if they can drive it to zero,they in turn keep the account open and pay no taxes-it is a very cut throat game.IMO the saving grace here is the 50m authorized share cap-that is the maximun dilution,barring the authorizing of more shares[which requires a change to the original charter,generally with a shareholder vote]..DD PS: one last observation,where there is Reg S,there always seems to be a "promoter" receiving ,free,unrestricted stock( in this case 1.7m shares-what are they doing for these shares? Who is the promoter?)

To: jamess who wrote (2227)	1/3/1998 11:24:00 AM
From: Eric Maggard	Read Replies (1) \| Respond to of 4276

Good morning all, I wanted to see what others thought of the Reg S offering. I guess most don't mind it, but I am now always going to stay away from companies that have to do reg-s offerings. Why? Most of the time the stock are really hurt by them and have a hard time recovering. This is of course IMO. See the article that jamess posted for some information. The stock has bounced back 100+% from its lows, but the stock is still down >80% from when the reg-s deal was done back several months ago. Some questions for management: 1) Since most of the investors now know why the stock is going down, could you inform them what percent of the offering has been converted as of Fri Jan 2nd? (You should know as they have to submitted the request to you before shares are converted) 2) What is the current outstanding share count as of Jan 2nd? 3) When (or if) are you going to increase the number of authorized shares and what would that number be? 4) How many wells were drilled before the end of the year and at what cost? 5) How come you had to resort to doing a reg-s offering? If you have the provable reserves, wouldn't Ray Dirks that gave such a glowing review be able to do some financing arrangments such as a loan? In the interview I posted here last week, Burditt states the following: "Burditt said Oilex plans to raise up to $10 million in debt and equity this year to fund its expansion." How much was raised and from where. When I was still in OLEX, they got into the following financial advisory agreement: Friday January 31 9:36 AM EDT Oilex Enters into Financial Advisory Agreement With National Securities HOUSTON, Jan. 31 /PRNewswire/ -- Oilex, Inc. (Nasdaq-OTC Bulletin Board: OLEX) announced today it has entered into a long- term financial advisory agreement with National Securities Corp. (National). David Morris, C.F.A. of the Ray Dirks Research Division of National has been assigned to cover OLEX. As the scope of OLEX's operations increases, it is anticipated that the company will be seeking additional acquisitions as well as other financial advice, thus it is felt the alliance with National will bring potentially significant benefits of OLEX shareholders. Oilex to Receive $1.5 Million Financing In related news, OLEX announced that its largest shareholder, Phoenix Reserves, Inc., and its President, Oliver H. Timmins III, have agreed to pay $1.5 million to OLEX in exchange for a new class of preferred stock. The funds will be utilized to drill new wells; perforate behind pipe zones on existing wells and recomplete existing wells and all other activities required to increase daily production. It is anticipated that this work will increase OLEX's daily production by approximately 2,000 barrels of oil per day within 6 months of completion of the work. OLEX is in the business of acquiring, developing and producing low risk oil and gas properties. SOURCE Oilex, Inc. If I remember right, they (National) were supposed to help in the raising of funds. How come a loan couldn't be secured? Are they still your advisors? 6) What will Allen Jones be doing? What will he do to earn his ~$30k payment? Will he be helping with securing more financing without increasing the O/S count? If you want Omar or Barron, I could email you these questions and you could respond privately. Well I guess that will be all for now. Hope everyone profits from the increase in share price. Eric