Earlier this morning, Innocent issued a shareholder letter from President and CEO Wayne Doss. A development stage company, Innocent plans to minimize the risk of exploration through development of proved petroleum reserves, and expects to maximize profit through strategic acquisition and liquidation of selected oil and gas properties. The shareholder letter in its entirety is provided below.
Shareholders,
The last several years have been a disappointment as it relates to the companies’ ability to fund and bring to successful conclusion the Ecuador and Steele Resources Joint-Ventures, respectively. And although the potential of the opportunities was worth the effort, the timing and ability to execute was not in our favor. The excessive amount of up front funding in a tight financial market gave new investors great concern. With that being said, we have decided that the future business model will consist of opportunities with less initial funding requirements to prove the opportunity, greater management control over the expenditures, a mandate to operate with our partners as a team, and the company involvement not just the funder of the venture, and then to build on this initial success.
Although we have reserved the losses incurred in our past ventures, we plan to hold the companies accountable for the revised and collateral agreements they entered into. We will not walk away from the obligation of these companies and will take whatever action is necessary to recover and hold them accountable. The final agreements in these ventures required the parties to repay the funds Innocent provided regardless of the success or failure of the project.
We believe that the newly announced exploration opportunities in the Powder River Basin of Wyoming, meets our current company business model. We will operate in our backyard, with proven professionals in the oil and gas industry, and structure the operating agreements in a manner that all involved will share on the rewards. The funding requirements will be line item detail, the expected return will built on a conservative basis and the assumptions will be clear and defined. This way we will be able to adjust the operating plan to maximize gains and minimize losses and not be committed to excessive amounts of capital prior to seeing the rewards of the operation.
As most development stage companies, we must seek new capital to implement our current announced opportunities, with the level of detail we have prepared to support this new venture and the reward potential, and we are reasonably confident the company can secure the funding to move forward. In the event we are not successful in a timely manner we will reduce the size and scale of our initial plan to prove the business model.
In summary, management believes that in presenting a new business model that can be as small as drilling several oil wells to drilling many within a very short time-frame in areas rich with history to support the management assumptions, documents to back up and substantiate our business model, and a well-seasoned team of oil and gas professionals in fold, management firmly believes this approach can be the winning formula that can only benefit with the success of the program, finally providing the company both a realistically financeable and controllable operation.
Warm Regards,
Wayne Doss
CEO
For more information, visit www.innocentinc.com
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