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Re: lowman post# 743

Tuesday, 12/12/2006 11:50:50 AM

Tuesday, December 12, 2006 11:50:50 AM

Post# of 51429
2. As for dilution, the real reason we are careful with dilution, because us insiders do not want to loose control of the company and expose ourselves to a potential hostile take over or some type of unforeseen corporate arm twisting, that could leave us with less than desirable results for the exit strategy. One thing for sure, we will not consider any type of stock swaps... it will be cash on the barrel (pun intended)


Which brings me to our anti debt strategy:

A. Look at the oil and gas history, if oil and gas turns down like it did in the 1960's, 1980's and 1990's the survivors were the ones that had minimal or manageable debt... true during the hard times they were not making a lot of money, but at least they were able keep the lights on and food on the table and lived to fight another day. The ones with big unmanageable debt now reside in the dust bin of history.

B. Any banker or lender will tell you, who ever controls your debt controls your destiny... for instance your observation about the market makers is spot on... Here is an evil idea, go buy the MM's personal mortgages or corporate paper and turn the screws whenever you see the need and watch how friendly they will get after a phone call. (I do hope you realize I am being fecitious.) BTW, Hemi will never have these problems for all these reasons.

4. We are very secretive, almost reclusive, and I know this drives the investors crazy, unfortunately, this is the way it has to be. If people are uncomfortable with any of this, then invest in something they are comfortable with. I SERIOUSLY MEAN THIS STATEMENT! We are in a high risk business. Every day there is little to no margin for error and if an investor is not comfortable with our strategy... then PLEASE re-consider buying our shares, because we are not going to change and the investor will sleep better at night.

On the positive side and no one knows this, until now, we have something no other company has... NO OTHER O&G COMPANY and where our true unseen strength lies, our research library.


(more to come)

L~



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