Bruce Day, the appointed receiver for Powder River Petroleum, has released the interim report of his findings. If you are an existing investor with Oilpods and would like to know more about the developments, you can download the report here:
There’s one part of the report that existing investors of both Oilpods and Powder River will be very concerned about. The cost of the leasehold and the price that it was sold to Asian investors are as follows:
If the numbers reported by Bruce is correct, then I am not very optimistic of the production capacity of the oil wells – certainly not at the projected revenues given by Oilpods/Powder River. Taking 2006 for example, I don’t think a $144,637 well can generate $1.7-3.4 million/year to give a 10-20% return.
Things will be clearer once Lee Keeling and Associates, an independent oil and gas engineering consulting firm, gives their evaluation of the oil and gas properties of Powder River Petroleum in a few weeks’ time.
An agreement was also made by Brian Fox to pay a 9% interest to investors on their investment amount for the initial phase. In 2007, a total of $4,413,406 in interest payments were made to investors. Of this amount, $3,263,004 came from funds received from subsequent investors.