Jun 12 2008
Oilpods Update
Last week, investors with OilPods would have received a letter from the CEO of OilPods, Mr Mark Chang.
Oilpods markets (oil and gas) working interest in the US, with the oil and gas lease operated by Powder River Petroleum International, formerly known as Powder River Basin Gas Corp and traded on the OTC Bulletin Board.
Investors of those working interest receive monthly payouts based on their share of the revenue generated from the sale of the oil and gas produced.
This month, no payout was received.
A check on filings by Powder River to SEC shows that the company is having cash flow difficulties.
OilPods has instructed their legal representatives in the United States to take the necessary actions to protect the interest of investors.
All seems well on the website of Powder River Gas Corporation. They even appointed a new operations manager a few days ago.
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hhmmmm
rather PDWR could not pay the operators of oil wells and if they pledged the oil wells to the operators in the operating agreements then investors here in sgp are ……….s****** … oil pods would have been better off making all agreements between all parties available …
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Hi alamaaaa,
The position of OilPods is that they are only the marketing partners of PWDR for their gas and oil working interests.
It might not be economically or operationally feasible for OilPods to take on the role of managing the operators since they are not based in that region.
It appears that the cashflow problems of PWDR only started after they stopped selling their working interests.
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singainvestor
Could anyone enlighten me on another Oilpods type investment
called Oilestates or so?…..
No idea of what all these so called OILY business about when oil seems reaching for the sky???
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Hi Laurence,
Oilpods has actually been around for quite a number of years. On the other hand, oil estates is pretty new to the scene.
Personally, if I’m bullish on oil, I would invest in oil-related equities or crude directly.
Once bitten, twice shy.
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Hi lioninvestor,
2 Basic Things that I know about oil investment of such nature as follows:
No.1……Oil Well/s is a depreciating asset.
No.2……Tax Royalty increases with production increases!
More Research needs to be done as there are many hidden factors to consider!
So 2 Fear factors at the back of my mind!!!
Twice Bitten…..Can Die!!!
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Hi,
What is the latest on Oilpods?
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If oil prices have been rising sky high for the past months, why isn’t investors making money from oilpod? Or why power river not making money from the wells they are digging?!!
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Hi lioninvestor,
Your point of view is great!and relevant
yes! better invest with SPC then Oilpods….I believe some investors are still waiting their for their so called dividents…..and to make matters worst OIL PRICE seem to decline so what do we have ……………..CRACK-POTS!!!
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Hi Russel,
Thanks for sharing!
Investors beware “CAVEAT EMPTOR” applies!!!
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Hi Dorai,
I just posted the latest update on this saga:
http://www.lioninvestor.com/oilpods-receiver-updates/
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Investors beware the money from Land International Far East which has now been closed down by the UK FSA has been moved from http://www.oilestates.com into http://www.landwealthcentre.com which is selling the same land as Land International far east through a different company.
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Tim,
So Oilpods & Oilestates = 0ilbubbles??? ……….Laurence is right in that sense about Twice Bitten, can Die.
Dumb Oil and go for Alternative Energy is the best investment to my thinking.
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Be sure to read Brian Fox’s affidavit where he gives an account of what has happened from his point of view. Mark Chang is just as guilty in the “ponzi scheme” and in fact is its creator.
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Hi lioninvestor,
Good Show!
Fantastic Educational piece of information !
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Hi Lion Investor
thanks for the research -
the problem in most alternative investment product issuers is that due diligence is really really weak or non existant. If cash flow problems started after they stopped selling interests we are not talking of the same cash flows: I look at operating cash flows.
Coming from a PE background and being in oil&gas when i saw what OilPods were trying to do, I clearly asked all management agreements … and 3D seismic reports .. much to my chagrin nothing was provided. Investors have a right to ask such information and be properly advised on that and those advising should be liable. These are marketing material which should have been provided by OilPods.
The promoters of OilPods had no background in oil & gas, even less in structuring financial products - but in times when financial institutions rode on the momentum and actually had little clue on fundamentals ( bankers who talk about P/E ratios should be lined up and hung in public for being frauds) it was frightening that industry professionals (not fin advisers or bankers) are not properly consulted - they are an upfront cost but at the end of the day these costs can save … well millions.
Clearly the MAS needs to look into this -
sad fact is the same sales guys will be scott free and just change their hat and be selling other products…
alamaaaa
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Hi alamaaaa,
when I attended the Oilpods seminar 2 yrs. ago my friends said jokingly better invest in Shitpods……now I know the meaning!
will MAS , CAD probe further?…if Oilpods is a Singapore Registered company or any comments?
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Hi alamaaaa,
Thanks for the insight. Yes, it would be good if MAS has more regulations in place for such “unregulated” products.
Hi Dorai,
I think until the court investigates and find out more details, we should refrain from passing any judgement about which company is really at fault.
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