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

To: Terry Lyon who wrote (4130)	12/18/1998 8:03:00 PM
From: CHRISTINE	Respond to of 4276

Subj: Re: Who is responsible ( FROM AOL ) Subj: Re: Oilex question Date: 98-12-18 02:56:19 EST From: CALIFTALK To: RickSkyboy The attorney for Burditt, actually for the record the attorney for Phoenix Reserves and for M.Patten Holdings is trying to force Oilex into Chapter 7 to attempt to get protection for Allen Burditt. He hopes this would stop actions against his true client, Allen Burditt. Since both of his so called clients, M.Patten Holdings and Phoenix Reserves are not creditors of Oilex, he really should not be bringing motions. His motives are not to protect the creditors or shareholders. In fact, M. Patten Holdings received assets that were purchased by money from Phoenix Reserves, that were taken from the cash received from the Oilex Debentures starting in July 1997 and continuing to about Feb 1998. In 1996 and 1997 Phoenix Reserves received shares of Oilex that were sold and the cash was wired from the broker in Canada to the Texas bank account of Phoenix Reserves. It is estimated from the company records that in the two years approx $2,600,000 was raised and consumed, from this source. The greatest part of the money was used for the personal benefit of Allen Burditt. In trying to avoid paying income taxes on this source of money, Allen Burditt with the assistance of Warren Soloski, the attorney (who on record was the attorney for Oilex) created for the tax records a sham joint venture. The CPA firm in Houston, Texas that completed the tax returns for Oilex, Phoenix Reserves and Allen Burditt, for 1996 gave a paper trail based on the facts as created by Allen Burditt to avoid paying income taxes on the 1996 proceeds. The joint venture was never reported on the Oilex 1996 tax return or on the Oilex SEC filings, and was never approved by the Board of Directors of Oilex. The attorney for Burditt has been given copies of checks from Phoenix Reserves made payable to Oilex, or as payment to Oilex suppliers, as PROVE that Burditt invested money in Oilex. BUT THE FACTS are that only a small portion of this, so called , Joint Venture cash was ever used by Phoenix Reserves to official Oilex business. In addition, the asset that Phoenix contributed to the joint venture, was the Big Foot Oil Field, that was already owned by Oilex. In other words, this was an other example of FRAUD. The Court must be made aware of the true facts of this case. The actions of the Burditt attorney are intended to harm the reorganization attempts of Oilex. The reorganization is dependent upon recovery of the assets held by the joint venture. We need an accounting to determine where the $2,600,000 dollars raised per the financial records are deposited. We need recovery of the portion of the $2,105,600 Debenture cash that was transferred to Phoenix Reserves. The operations of the company for the past three months have been cash flow negative. The swabbers needed expensive repairs, the auditors needed a $25,000 deposit to complete the 1997 audit, the raining season limited the time when swabbing could proceed, and the current bills post petition alone exceeded the cash deposits. Payment for insurance was delayed as there was no money available, plain and simple. The negative cash flow was covered by cash deposits arranged by me. In addition, I have advanced payments to the attorneys. The actions to recover will proceed until we have justice. The guilty parties include the professionals who assisted Burditt, the touters who were paid by Burditt to spread the misinformation, the officers and directors of Oilex that permitted Burditt to loot the company, and other parties that shared in the payoffs.