There's a fair amount of debt, numerous lawsuits, hefty asset values (over 60 cents per share), increasing revenue....looks like management has their work cut out for them.
But...with revenue flow continuing to increase and some pretty big money behind the company...I think this company has a future.
RE lawsuits....Here's a pretty important paragraph:
"Litigation
"The Company is aware of the following pending or threatened litigation. All of the litigation below relates to outstanding liens and encumbrances against approximately 7 wells acquired from Star of Texas during the year (see Note 4). Exterra expects to be able to settle these and the other liabilities and liens for approximately $5,000,000. "
I think the import of this is that we acquired some pretty valuable property that will end up costing us 8 million shares plus the $5 Million bucks....for $10-15 Million in provable reserves. If I'm reading this correctly...not too bad.
