NVER GROVE HEIGHTS, Minn., May 6, 2013 /PRNewswire/ -- Petro Resources, Inc., a wholly owned subsidiary of Blue Earth Resources, Inc. (OTCPINK: BERI),
Dear Shareholders:
Although 2012 was a difficult year for us, the Company is now well positioned for future success. We are optimistic about our change in our business strategy.
Blue Earth Resources, Inc. (BERI) formerly Century Controls International, Inc. is a Utah corporation. Our operating subsidiary, PetroResources, Inc. (Petro) was incorporated in Nevada in 2006. Petro has engaged in the acquisition and asset management of royalty, and overriding royalty interests, and/or non-operating working interests in producing oil and gas properties in the United States.
In early 2013 the Board of Directors and the management team of Blue Earth determined a fundamental shift in its business model from acquiring non-operating working interest well to active well operations and acquiring majority interest in its wells. This change was brought about through the acquisition of key management and properties in Louisiana and Texas. The management team brings over 80 years of experience in the oil and gas industry. With the addition of 2 new key oil & gas management and board personnel BERI has become unique in the sense that BERI has evolved into a hands-on oil & gas company with the focus on being able to cut expenses and drive more money to the bottom line. Mark Bryant , COO and Board member, was raised in the Louisiana oil field and has extensive knowledge of the industry backed with a legal education. He has over 33 years in the oil field. John Sartor , Board member, has over 55 years experience in the oil & gas industry. He has fabricated drilling rigs and drilled wells to depths reaching 10,000 ft. He has an extensive drilling background. With these additional management personnel, BERI can negotiate better prices and acquire more lucrative properties while drilling and servicing their own wells.
Going forward the majority of Blue Earth's revenues shall be derived from the production and sale of oil and natural gas. The Company's holdings, including its mineral acreage and its interests in producing wells, both working interests and royalty interests, are centered in Louisiana and Texas. Blue Earth plans to operate the majority of its oil and gas properties. Exploration on and development of the Company's oil and gas properties are conducted in association with operating oil and gas companies, primarily large independent companies. BERI is in the process of acquiring mineral rights in the Louisiana and Texas region. BERI, with our drilling program, should see a significant increase in our cash flow by the end of 2014.The 3 year goal is to have BERI on the American Stock Exchange or NASDAQ and partnering with other major oil companies drilling development wells.
The Company is reviewing its capital structure with the goal of maximizing shareholder value and providing a long term capital solution to support the company's strategic growth plans. Third quarter's objectives will include working with independent research analysts to track and report the Company information related to our new business model, and the expectations of current and prospective shareholders.
For the past few years, the Company has made considerable annual loan advances to PetroResOne, Inc. (PROI) to provide them with working capital funding for the commercial development of a patented diesel or gasoline tank cleaning system. PROI recently became insolvent and unable to raise additional working capital, and accordingly the Company brought legal action against them and obtained judgment in a Minnesota District Court for $2,972,228, which represented the total amount owed to the Company incident to our loan financing of PROI. Rather than foreclosing on assets of PROI via our judgment, the Company purchased assets of PROI including the tank cleaning system, certain related tangible equipment, and all patents and any other related IP rights, for which the Company released PROI and its officers and shareholders from any liability to the Company from the Court judgment. Because of the uncertainty involved in valuing these primarily intangible assets acquired from PROI, and incident to our periodic evaluation of assets for balance sheet impairment, the Company has written off (impaired) $2.7 Million relating to this PROI financing transaction.
We thank all Blue Earth shareholders for your patience and support. We will be launching a new website in the next 30 days in an effort to keep our shareholders better informed of the progress of the company.
John Lai
Chief Executive Officer
