INVER 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
The foregoing material may contain forward-looking statements.
We caution that such statements may be subject to uncertainties and
unanticipated events or circumstances, and that actual results
could differ materially from such forward-looking statements.
Readers accordingly should not place undue reliance on these
forward-looking statements, which do not reflect anticipated or
unanticipated events or circumstances occurring after the date of
these forward-looking statements.
Blue Earth Resources, Inc. Contact:
John Lai
952-838-3838
Email: jlai@blueearthresources.com
SOURCE Blue Earth Resources, Inc.