Net Loss. The Company incurred a net loss of $16,165,889, or $.31 per share, in fiscal 2008 as compared to a net loss of $1,151,457, or $0.06 per share, in fiscal 2007 (most of this was paper loss). The increase in the net loss is largely due to increased general and administrative expense (most was attributed to stock issuances to management), increased interest expense, adverse changes in fair value of derivative liability (subsequently no longer exist), and an increased (non-cash) loss on settlement of debt.

If the company keeps loosing 0.31 cents per share the stock will nerver go up.

yours truly

Concerned Investor

Editor: Guys- I’m not sure why everyone is so concerned about these trailing issues. A bet on this stock has nothing to do with this history. The market cap is about $14 million, which is the main issue. Is the company going to be worth more than $14 million ? The first quarter of revenues is going to be Q3 of ‘08, which is due out in mid November. In the interim, the company seems to be willing to disclose weekly revenue figures. They have publicly stated there is about $1/2 billion in reserves, which based on the new pricing could be now down to about $300 million.  Owning this stock is not a bet on what happened in the past- it’s a bet on the revenues that just started to flow about July 1st. If they’ve really got it, the stock will trade better at some point in the future. That’s your bet, and that’s what you should be concerned about in my view.

Editor: That is pretty standard accountant language for all companies in the microcap space that aren’t profitable. If the data the company is publishing on their operational wells is accurate, that statement should go away over the next 2 quarters. I think the stock has probably over reacted a bit to the drop in nat gas prices, but that’s the nature of the markets. 

Editor: I’m not sure if that’s relevant to the numbers- they are either going to deliver them, or they aren’t. 

Did you get a chance to talk to Blair??
What is up with the gift or earnings of stock to Blair?? the Pres.
I guss you can look at it two ways one he just dilluted the stockholers by 20% or Two He thinks that the stock is under valued and he wants more for the future??? Is this a scam or can the stockholders trust that the company and the board explain how we can trust and with confidence keep investing in this company.

Editor: I don’t believe this issue is meaningful. They are either going to start kicking up the earnings, or they aren’t. According to the company, cash flow is going to be strong. 

Editor: If you have read my disclosure, you will see I own one million shares by virtue of representing the company. These are not tradeable shares, and won’t be for six months. If the stock does well, I do better. If the stock does poorly, I make less towards our profits and running the operation. Once free trading, I will sell some to cover my overhead, all if I think the company is grossly overvalued, some or all if they aren’t delivering on promised results. For a little bit of money in the current market environment, I like this one. I like others as well, but this one is in a sector more likely to trade well if the company does well. 

Editor: Very good question. I will look into that and let you know what I can find out. Check back to this question for an update in a day or two.