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Silk Energy Ltd SLKEF

Silk Energy Limited is a Canada-based resource company. The Company acquires undervalued oil and gas assets in Kazakhstan. The Company, through its subsidiaries, owns a 50% interest in the KMG Ustyurt license (Ustyurt). The Company focuses on exploring and developing Ustyurt, an onshore oil and gas concession comprising approximately 6,500 square kilometers in the Caspian Sea region of the Republic of Kazakhstan.


GREY:SLKEF - Post by User

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Comment by victor2009on Dec 06, 2010 4:38pm
211 Views
Post# 17808186

RE: Christmas With The Three Stooges

RE: Christmas With The Three Stoogesdoingthejob,

I'd say it is you that can't see the forest for the trees. You say ISM is a Junior Exploration company. Over two years ago, the company published a brochure identifying itself as an advanced exploration company with substantial and gratifying results. Both definitions seem to be full of holes.

So for those who want to invest in advanced exploration companies that spin out new endeavours, how do you explain some of the accomplishments. The Jasper spin-out has resulted in pitifully little return to anyone - and although over 50% of Nitinat book value is shown as an asset in ISM financial statements, the company has indicated monies realized will go to those holding shares back in July 2007 - that would mean that anyone acquiring shares since that time would get nothing. For a company whose strategy is based on spinning "new endeavours", ISM seems rather inept - the authorities had to step in and put an end to their attempted spin out of the "new endeavour" Langmuir failed mining experiment this past year. Up until the Micon Report, I guess  Langmuir was an old endeavour, that was referred to as ISM's prime asset.

And how do you explain that this junior exploration company has expended more on administration and public/investor relations than it has on exploration? Or that its used money to lend $6+ million to an unnamed company and unnamed individuals. Or that its used money to buy into a penny stock mining companies. Or that its spent $3 million on an NSR that was grossly over valued, on a property that so far has no mineral reserves, let alone need for smelting. And when exploration is said to be needed, this company is busy buying back its own shares at amounts well in excess of current share prices - but the exploration is left undone. And it acquires a prospective property, and shortly after announces that the acquisition is challenged legally - the outcome unknown - with the vendor being a geologist (now  former) engaged by the company.

Well over five years of exploration and your Junior Exploration company hasn't identified one ounce of mineral reserves. And the CEO guiding the company to this stellar performance record is rewarded with a 25% raise, and a parachute package that could wipe out remaining cash.

You say ISM's strategy of handing out stock options to acquire assets and cover expenditures has eluded me. That's not correct, I'm very much aware of the options that have been dealt out to insiders, consultants and IR firms. I'm also aware that some of these cheap options were windfalls for the selected few. Picking up options for pennies and unloading on the run up to $7+ was quite the cash conservation policy! Nice for the lucky recipients, but what did it do for the ordinary shareholder?  You're a fine one to be expounding on the granting of options. You came out with the observation that Randy Miller had spent $500,000 or so when options were granted to him - you didn't even realize that he got the options for zero!  You're quite the corporate financial wizard - maybe get your college boy to explain options to you, if he's forgiven you for that AGM fiasco.

And you say ISM has enough for 5 to 10 years of exploration!  At the rate cash is diminishing there's no way it will last 5 years - let alone do meaningful exploration for five years. In the nine months ended June 30, 2010 ISM showed a $6.5 decrease in cash, less than 25% of this for exploration. They ended that month with just over $12 million, and part of that is cash held by Nitinat.  ISM has $28 million tied up in mineral properties now, has spent $17 million to get Langmuir to the point of having no reserves. How much meaningful exploration will get done from $12 million, if 75% is earmarked for other uses? And what if Randy's parachute opens? 

You better get your laughing over now, doingthejob - because when you snap out of your delusional dream and face reality - it won't be any laughing matter.
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