LGX Oil + Gas Inc ROAOF

mrmomo re ownership of ONSL assets

[tano]

mrmomo,

You stated: "I see no reason to own this stock anymore. None.  I don't see how current shareholders can getting anything back if they lost total ownership of those properties."

Technically/legally speaking OIL and ONSL are two separate entities. OIL never owned the ONSL assets. ONSL owns the ONSL assets (e.g., the oil field leases, etc.). OIL owns the shares of ONSL. In other words, OIL's assets are the shares of ONSL. Whatever value ONSL has ultimately flows through to OIL, by virtue of OIL being the sole shareholder of ONSL.

Based on my limited understanding of the administration proceedings, ONSL has not lost ownership of its assets yet.. It has lost control over them. It is only if and when the assets are sold (or transferred pursuant to the terms of a bank indenture) that ONSL would cease to be the owner of the assets. If ONSL's assets are sold, any money left after ONSL's creditors have been paid, would constitute a new asset of ONSL, the value of which would flow through to OIL, by virtue of OIL being ONSL's sole shareholder.

What we do not know is whether the ONSL assets can be sold for a price higher than what is owed to creditors.