Welcome To The Platina Energy Group HUB On AGORACOM

Edit this title from the Fast Facts Section



In a market correction, how do you want your companies to handle communications?

Very important. Please participate and retweet, please.



Message: CEO's letter

CEO's letter

posted on Nov 20, 2008 09:03AM


November 20, 2008

Dear Valued Shareholder,

These are obviously trying times for anyone involved in the capital markets. The last year has seen wealth significantly eroded due to decrease in equity values in the public markets. Platina has partly been a victim of these circumstances, although to no surprise of mine. Anyone can see values in “blue chips”. Even Citigroup, General Motors, Bear Stearns, Lehman Brothers, Washington Mutual, etc. have had their share prices decreased from 80 to 100% in some cases. It is with great strife that I ask for your support and belief in Platina as I try to navigate through the ongoing financial crisis our world faces.

This letter is to respond and give clarification on several matters concerning Platina. First, I remain the largest non-institutional investor in the Company. The bulk of my net worth and liquid cash is invested into Platina. As recent as this past week, I advanced money from my personal accounts into the Company. In the past, I have gone months without a paycheck. I will continue to do what is necessary to support the Company and its efforts in any way that I can to the best of my ability.

I realize that the recent Company share price has caused much financial pain for our shareholders, who I consider to be the lifeline of the Company. I also believe that the Company exists primarily to serve its shareholders. Since our endeavor into oil and gas in 2005 we have been met with many obstacles, including falling short on financial commitments and more, but we have managed to survive and acquire many valuable reserve and technology assets. Our true road block has been the ability to commercialize the assets into economically attractive income primarily from production.

As we progress, I have provided news information that has always been accurate at the time it was released. All press releases also stated that there are uncertainties and field variables and that we as management cannot always provide new information as it can change from day to day or hour to hour. That is why we have regular reporting and audited financial statements to keep you most informed. In reviewing our filed financial statements, it is clear that we have been in technical financial impairment since our inception, but that has not stopped us!

Our current target is to focus on the productivity of the wells that we have drilled in Kentucky , Tennessee and Young County , and secondarily to focus on the wells in Wyoming and Oklahoma . The drilling of the wells in Kentucky resulted in much excitement, but later presented new challenges causing us to have to change our strategy for finishing them. These recent events are not uncommon for the oil and gas industry, and we already have a strategy in place to resolve the issues at hand. However, this takes access to resources that we continue to pursue and target for field development success.

I’m optimistic that we are very close to having the needed formula to harness all of the hydrocarbons that our engineers have validated over the past year or more held in our leases. According to those reserve studies, we have over 2 million barrels of oil and over 20 BCF of natural gas . At today’s prices, that translates into nearly $250 million of recoverable reserves , yet our market cap is just one percent of this. By my calculations, that is a huge disparity and reason enough to support our cause to continue to be a loyal shareholder .

At our recent board meeting, we discussed a number of items including the delinquency notification of payment to more than one Company obligation. We are presently working with everyone as we always have and will continue to do so in order to satisfy everyone’s obligation in whole. There have been no hostile activities to report and we have an open and honest line of communications in working toward solving these outstanding payables. Again, the good news is that we have plenty of assets and are discussing the best method to commercialize them for repayment as well as for profit.

We released a press notification earlier today stating that we had the pleasure of an independent analysis of several of our wells in Kentucky by well-known petroleum engineer David Shroff . His objective findings relative to potential production were considerably better than what we had estimated . He also stated that the method we had been using to stimulate the hydrocarbon formation was incorrect and that we were not even getting a fraction of what the true potential was.

Just like a good Doctor, he prescribed in detail, a method to complete the wells using an ionization process that is scheduled for the middle of December. During our Board meeting, we elected that we would not make any major decisions relative to financing and debt issues until we had the results from the first well completions using this specialized process. It is fair to say that Mr. Shroff has 120 prior successful well evaluations in front of ours. Before I get too excited about what the real production potential might be, I’d like to wait for the actual results.

In the mean time, we are producing from several wells and anticipate more production coming on line from some of the newer wells as finances and field personnel time allow. Many of our employees have also invested their hard earned funds into the Company and are optimistic that we will be victorious. We are still very much alive and have a viable opportunity to grow out of these pains but we need tenacity, a good plan and dedicated shareholders like yourselves to prevail.

Thank you for your time in reading this letter and I wish you the very best that 2009 and beyond can bring.


Blair Merriam
CEO & President

New Message
Please login to post a reply