I just received an e-mail from Marc- entire contenYour right it has been crazy of late both from the market and other
projects and opportunities that we have also been developing for the company
and I expect you will see a lot of action out of Goldnev over the next 3
months.
Thank you for sending me the Rendall Process though I have heard of it and
had some information I did not have the technical report which is very
helpful. We are working over the next month to complete the Resource Report
and a section in the report will be addressing the various retort and other
oil shale processing technologies. After reviewing the process section of
the report I believe it will set aside any thoughts that the technology
exists now to commercially process oil shale which should provide a
substantial boost to the perception in the marketplace that seems to think
that we can't currently process the shale if it is found near surface, the
fact is we can and will be able to prove it to everyone soon.
In response to your questions:
1) As a public company Goldnev has to perform an independent
engineering evaluation report/appraisal on its reserves and if it so chooses
also on its resources for the year-end which get filed at the same
time as the audit. Goldnev's year-end is March 31 which is why we are
wanting to push to complete the Resource Report since I would like the
independent engineering evaluation firm to also audit or review the Pasquia
Hills Resource Report since I want it included in the F-1 filing. Degolyer
and McNaugthon will be performing again our independent reserves report
and F-1 Filing.
2) By plans contemplating for the $1,000,000 Aug/08 oil shale payment
commitment, I am assuming you mean how do we plan on paying for it? We have
just finished completing the 2 workovers at Provost and are currently
putting both wells onto production so the thinking has been that if and
when the recompletion at Noel is finalized and assuming it's a success, we
would look at selling Provost since we expect to get a least a million for
the property. The Provost monies could be applied to either or both the
Pasquia Hills and Noel drilling programs and that is still our
thinking.
Goldnev though is in good shape, it has no real debt and we have
currently over a million dollars cash in the bank. Over the last 2 months I
have been able to get most of the company's warrants exercised so we have
the money in place now to pay for the Noel re-completion and the 10
well core hole drilling program at Pasquia Hills. We also have a lot of
brokerage and institutional interest in a financing and will be almost
certainly be wanting to do a private placement after the resource report is
released since we will want to plan a second drilling program at Pasquia
Hills which together with the first 10 hole program will complete our $1
million dollar 2008 commitment at Pasquia Hills. The company will
also want to plan for and pay for a drilling program at Noel which we need
to do to get real cash flow in the company so that future financings
requirements will be dimished. Goldnev will also plan to complete some more
acquisition in 2008 and focus on developing or acquiring an oil property
since I want a good oil production deal in the company to round us off and
provide further cashflow. The production g oal for oil and gas is a
minimum of 1,000 barrels/day by the end of the year so we are very ambitious
and will likely be requiring to raise the necessary funds thoughout
the year to support all three programs.
Hope this answers your questions and want to thank you for your nice words
and will call you this afternoon to answer any further questions you may
have.
Regards,
Marc