Message #30 From:
NewsBot Date: January 4, 2007 12:15:00 AM
PGPM News Pilgrim Petroleum Announces Year-End Letter to Shareholders
IRVING, Texas--(BUSINESS WIRE)--Pilgrim Petroleum (PINK SHEETS: PGPM) (FWB: PHV) issued a letter to
shareholders today, providing an update on the company's progress. The
letter reads as follows:
To Our Valued Shareholders:
Pilgrim Petroleum’s performance in 2006
provided strong confirmation of our company’s
ability to grow, maintain and increase financial and operational
performance. All of us at Pilgrim Petroleum recognize that raising
shareholder value is our collective challenge. Good operating results,
combined with no debt in our balance sheet, have contributed to
aggressively focus on the growth of our portfolio.
Accomplishments
Workover and completion services on 60 wells on Pilgrim Petroleum’s
most important leases (Hooks, Lockridge, Climax, Morgan and White
Meldon Leases) steadily increased our production levels.
Pilgrim Petroleum completed its Reserve Evaluation program (Phase one)
with the engineering consulting firm Gustavson Associates, a very
important step to comply with stock exchanges filings requirements and
auditing.
Results of prospective resources are: Low-3.98 BCF, 996 MBbl;
Best-7.32 BCF, 1,832 MBbl; and High-10.70 BCF, 2,676 MBbl.
Gustavson Associates express opinion on Pilgrim’s
potential resources, which do not include recent additional acreage
acquired by the company (Phase two). The report is available at our
website: http://www.bpetroleum.com.
We expect these recent additional properties be evaluated and included
in our Geological report in 2007.
According to Gustavson Associates, Pilgrim's Estimated Future Net
revenue (before income taxes) is $102,370,000 and a Net Present Value
at 10% discount rate of $52,050,000.
Strategic Alliance with General Energy Corporation, headquartered in
Montreal Canada, provider of additional acreage in the Central Gaspe
Peninsula.
General Energy Corporation sets strategic alliance with Huizhou
Engineering Co. Ltd an SEWAN Limited, alliance named as “GSH
Energy,” to jointly develop and manufacture
land and offshore workover equipment and portable trailer drilling
rigs.
Being mindful of the need to offset dilution, in early December 2006
the company announced a plan to repurchase up to $1.5 million of the
company’s common stock over a period of up
to two years.
Renewal and signing engagement agreement with American Capital
Investments, LLC (http://www.americancapitalipo.com),
which will provide financial and strategic services to increase
visibility to institutional investors.
Pilgrim`s common stock commenced trading on December 20th
on the Frankfurt Stock Exchange under the ticker symbol “PHV,”
WKN: “A0ETGE,”
ISIN: US72147P1075.
Pilgrim Petroleum management are focused and determined to develop more
proven reserves.
FINANCIAL STATUS
Pilgrim Petroleum keeps maintaining no long-term debt, minimal
liabilities and a substantial increase of net revenues.
Our financial strategy emphasizes continued strengthening of our
much-improved balance sheet. At year-end 2006, we have achieved positive
profit margins and outstanding performance ratios. Elevated by a
high-performance culture, we continue to build an exciting company and a
compelling future. By adhering to a disciplined financial strategy, we
were able to improve our cost structure, strengthen our portfolio of
assets and enhance the company’s overall
financial strength.
The above observations have provided Pilgrim Petroleum with the
confidence, drive and knowledge to implement the following strategies
for our leases development.
What is on the short-mid term agenda?
Continue to implement Pilgrim’s development
and reactivation program on the most profitable leases and potential
debentures
Become a fully Reporting Company
Pilgrim Petroleum earnings and revenue streams are expected to further
increase from reactivation of inactive wells and will be focused in
2007 to increase production with different recovery process along with
new drilling activities along with our Field Service Department and
Basic Energy Services (NYSE:BAS)
Search of partnerships to venture on developing Pilgrim’s
exploration program and drilling/exploration campaign estimated to
begin first quarter of 2007
What is Pilgrim’s long-term goal?
Commercial Production from our current portfolio
Re-invest our excess cash flow into new exploration potential
reservoirs in deeper horizons or in other similar properties
Venturing with peer companies to acquire working interest in
attractive new prospects and proven reserves properties
Long-term profitability and sustainability
CORPORATE COMMUNICATIONS TARGETS:
Given the upcoming changes and in order to ensure effective time
management on the new developments being implemented by Pilgrim
Petroleum Corporation, we provide our shareholders and potential
investors with a quarterly President’s Report.
Our management remains focused on developing strong communications by
effectively executing its corporate goals:
Investor Relations program with American Capital Investment, LLC –
ongoing
Improving the Pilgrim Petroleum website to ensure that the most up to
date and relevant information is being presented effectively.
Wallst.net, which receives several million visitors a month,
interviewed Pilgrim’s CEO, Raphael Pinedo.
It is available at www.wallst.net,
and Pilgrim Petroleum’s website.
Our Investment Strategy Plan will continue to focus to further expose
Pilgrim Petroleum in the US, Canadian and European markets.
Please visit www.pinksheets.com
to view all of Pilgrim's publicly filed documents.
On behalf of the board of directors and management team at Pilgrim
Petroleum Corporation, we would like to thank all of our current and
future shareholders for their continued support and interest. Pilgrim
Petroleum management is very excited about the growth achieved this
year. Pilgrim Petroleum is focused on increasing production of their
existing oil supply to commercial levels and further growth through
acquisition of domestic and international properties opportunities!
Headquartered in Irving, Texas, Pilgrim Petroleum Corporation is a
publicly traded company (PINK SHEETS: PGPM) (FWB: PHV). Pilgrim
Petroleum Corporation is an independent oil and gas company based in
Irving, Texas. The company is acquiring oil and gas leases, producing
properties, mineral rights, and surface interests primary on marginal
fields. Once acquired, the company intends to redevelop each property to
maximize the income from each property by refurbishing and improving the
existing production. Forward-Looking Statements: The statements which
are not historical facts contained in this release are forward-looking
statements that involve risks and uncertainties, including but not
limited to, the effect of economic conditions, the impact of
competition, the results of financing efforts, changes in consumers'
preferences and trends. The words "estimate," "possible," and "seeking"
and similar expressions identify forward-looking statements, which speak
only to the date the statement was made. The Company undertakes no
obligation to publicly update or revise any forward-looking statements,
because of new information, future events, or otherwise. Future events
and actual results may differ materially from those set forth herein,
contemplated by, or underlying the forward-looking statements.
2006 Pilgrim Petroleum Corporation. The information herein is subject to
change without notice. Pilgrim Petroleum Corporation shall not be liable
for technical or editorial errors or omissions contained herein.
