Platina had a couple of events worth commenting on today. Sorry for the lateness of this posting, but I am traveling and thus have to get to these updates when I can.

Platina filed its 10Q quarterly financial statement with the SEC today as it announced well #7 in Kentucky has gone into production.

Here’s the biggest challenge for Platina. If you read the company’s press releases and independent appraisals of their reserves, you can argue the stock is absurdly undervalued.

If you read the company’s financial report from the June quarter, you can make the argument the company is a total disaster, and the capital structure is a mess.

The truth, as always, is somewhere in the middle.

Here’s my message to investors on PLTG. I have put this in print, and I’ll continue to reinforce the message- the June quarterly performance numbers are in a sense a moot point. On the plus side, PLTG is carrying its properties as a $6 million asset in “uproven reserves”. The rest of the balance sheet reveals a company with $11 million in assets, very little cash, and a variety of different sorts of debt.
To understand the company, you have to understand the $6 million in uproven assets started to turn into a real revenue stream in July- so far disclosed to be at least in the neighborhood of $1 million for the three month period beginning July 1st.

The real, hard number in revenues for Q3 won’t be seen until mid November- six weeks after the quarter ends. If the top line is not in the neighborhood of at least $1 million, then Houston, we have a problem.

There is some revealing information in the 10Q- PLTG has paid for a lot of stuff of all kinds by issuing stock- this might help explain some of the sloppiness in the chart. according to the 10Q, there are now 150 million shares I&O- up from the number in the filings from their end of March. The new stock issuances might not be free trading, but they are part of the capital structure, and therefore dilutive in nature.

However, it’s all about return on investment. PLTG has been investing in Kentucky for some time, and it’s evident in the growth of their assets vs the number of shares I&O. The big question?- Are the shareholders going to get an ROI- again- 7 producing wells since July 1st is strong, but the market needs to see the hard numbers.

Here’s a messy chart, but has potential:

The stock sold off pretty abruptly in August almost perfectly in concert with the drop in natural gas prices.

Since then, the stock has consolidated in the $.08 to $.10 range and is building a base.

When I first published, I set the SSL (suggested stop loss) at $.10- so if you decided to stay in you should be thinking a bit longer term.

If the stock sells down tomorrow on the 10Q, it would be an opportunity to jump in and accumulate - a low number, in the $.07 to $.08 range might even be good for a trade to the upside.

The news of the 7th well going into production could send the stock the other way. We’ll have to see. At any rate, the sooner they can monetize their investments, the sooner we will be able to quantify what we have here.

If we haven’t seen it already, I suspect we will see the summer low tomorrow, and it will end up being a great opportunity.

For those who want some education on reading these SEC filings- go watch my video entitled, of all things “Understanding the SEC Filings and Financial Statements”.

Comments and questions are welcome.

There have been a couple of items worth mentioning out of Platina of late.

For those who want to take a little “voyeuristic” tour of a couple of their producing wells, here’s a link you can visit:

http://platinagroup.com/multimedia/adam_tour.htm

For those who are interested in an update of current events at the company, here’s a letter going out to shareholders from CEO Blair Merriman.

Dear Shareholder:

It gives me great pleasure to inform you that we are now on the eve of our first million cubic feet of natural gas production day. We’ve done our best to provide news releases relative to Corporate progress, but each day more is happening than we can reasonably report.

As you are aware from our previous press releases, our most recent developments have focused on our Kentucky property although other activity is simultaneously happening on other fields. Again, much more can be talked about, but the focus of my letter to you is most relative to Kentucky.

Toward the end of last month we announced a reserve report relative to the combined “proved” reserves for Kentucky and Tennessee, which included over 20 BCF of gas and almost 2 million barrels of oil. Based on our data from well activity in Kentucky, it is clear to us that our potential reserves may be significantly understated. However, definitive data is still premature, yet we remain very optimistic.

Over the next couple of months, as the Kentucky field becomes more developed, we will have the independent reserve report updated with the most current data and have the reserve values reanalyzed for a potential increase. Unfortunately, the oil and gas business is not an exact science, but our results now speak for themselves.

The Company is well on its way for fast track growth and we continue to acquire new oil and gas lease holds to increase our future well site capacity. It is important that you understand that we believe that the Company has a “whale by the tail” and that the potential for growth remains at levels beyond our forecasts and expectations. This includes increased production, considerably beyond the recent dip in natural gas and oil prices.

It is critically important that shareholders understand that our growth and future profitability is forecasted using pricing that is significantly below current market levels, and that as we increase production and have more predictable cash flow, we may consider sophisticated hedge strategies to lock in higher profits.

The focus of Platina continues to be responsible development of our fields including the addition of new technologies that will increase the potential recoverable reserves thus helping to preserve our environment. We also are working very hard as a Westernized Company to reduce reliance for oil and gas from controversial areas of the world.

Domestic infra-structure within Continental North America gives us a large competitive edge compared to Companies that have large overhead costs associated with transportation and other risks including force Majeure considerations for water based or unstable government or socio economic issues that may interfere with their progress. Additionally, our environmental responsibility is highly sophisticated compared to other areas of the world and even more so by Platina management.

Despite being in the fossil fuel business, we do urge everyone to conserve energy where possible and to use alternative methods for clean energy sources where feasible. Although we globally expect advancements in both clean and safe energy sources in the future, it is unlikely that air transportation will be using solar, hydro, hydrogen, nuclear or wind power.

It is also unlikely that the transformation to alternative energies will be as quick as we would like and the costs for future change over are enormous. The “Platina method” of economically responsible recovery through conservation, technological advances and through bio flora strategies, has proven itself to be the optimal method for the foreseeable future.

Platina is unique in the industry having proven that it is possible to use technology to responsibly develop reserves, improve costs, and preserve the environment while doing our part to reduce the nation’s dependence on foreign oil. The management of Platina believes that the best way to serve shareholder profit motives is to use a blend of reasonable and socially responsible decision making processes that optimize economic potentials while preserving our planet.

I look forward to writing to you after our first 2 million cubic feet of natural gas day, which I hope will be very soon. I also do not want anyone to think that our oil reserves are any less than our natural gas potential, but we simply do not have the field monitoring capability to determine exact daily metrics as we do for natural gas.

Our present blend of oil and gas production is about equal and likely to remain so on the Kentucky field. In the next coming months, we will be refocusing on the concomitant development of Tennessee, which drilling program was temporarily put on hold because of the huge success in Kentucky and limited expansion budget for two fields at once. The drilling program in Tennessee to date has been very successful and we anticipate its first production revenue checks by sometime in September.

For those of you who have participated in field tours, I’m hoping that you will share your findings and excitement with other shareholders and interested people either through our webmaster on our website or on independent services such as YouTube.com and other internet based forums. Also, don’t forget to visit our web site: www.PlatinaEnergyGroup.com and sign up for our upcoming Webinar event on August 27, 2008 4:30PM Eastern Time. ou can also access the Webinar via a simple phone connection (similar to a teleconference, but you just listen in) by calling (702) 824-9512, access code 631-773-100, then you will be asked for an audio pin, which is the # key.

Sincerely,

Blair J. Merriam

Seems undervalued to me, but technically a bit of a mess right now. Will need some good volume days to clean it up and help it move back to a more reasonable level.

Comments and Questions are Welcome

PLTG opened fairly reasonably at $.135 this morning. I would go ahead and grab all you want up to $.15 for today. Then, we’ll see how things pan out from there.