Radiant Oil & Gas (ROGI) – Letter to Shareholders
Dear Fellow Shareholders, Employees, Business Partners and Friends:
March 10, 2017 - Shortly after my last letter to you the Oil and Gas industry saw a severe route and subsequent mild recovery in oil prices; in fact, “213 North American Oil and Gas companies have now filed for bankruptcy since the start of 2015, listing more than $85 billion in debt.” (FuelFix Oct 25, 2016) With much hard work, sacrifice and determination it is with great pride that I write this letter to inform you that Radiant has survived and maintained continuity as it weathered the worst generational downturn in the Oil and Gas industry since the 1930’s.
I agree with the notion that the extreme volatility in pricing appears over and we are once again in a more stable business environment with a tendency more toward the upside than the downside. In consideration of the last several years instability and with an eye toward protecting our downside and in order to compensate for potential market volatility and lower pricing Radiant’s projects have breakeven cost below $12/barrel and a lifting cost under $3 which should insulate our shareholders from potential near term instability in pricing. According to Raymond James Q4 2016 activity report ”A&D activity increased throughout 2016 with the fourth quarter ending the year at a pace similar to the third quarter. Commodity price recovery and long-awaited stability, combined with investors’ continued willingness to inject capital into the energy sector, led the transaction market to activity levels not seen since 2014.”
With all that being said let me give you a synopsis on Radiant Oil and Gas.
Radiant is raising money for several solid programs. We have executed agreements with sellers to buy the King Project, 4 producing fields in Texas, and executed agreements with a 125 year old New York Investment Banking Firm to finance the project. We are currently in negotiations with several sources to raise additional equity with the goal of closing on our immediate acquisition and doing it with majority equity financing and strategically avoiding debt. Keeping debt to a minimum is another strategic move to weather instability.
As we continue moving forward, we are getting our accounting in order to be audited and get current! We are planning on being proactive with our story, and we have recently invested a lot of man power to make our new website (www.Radiantoilandgas.com) more shareholders friendly – Radiant has also improved its balance sheet, where it can better weather any twist and turns that might arise from the ever changing environment while continuing to execute its business plan.
We will continue to regain and increase shareholder value by closing deals that are very economic. Radiant has proven that we can source deals consistently. Our professionals at Radiant are not only deep in knowledge, but dedicated to the process of growing our company!
Please look for more announcements, as 2017 is shaping up to be a stronger year with potential to be a banner year. In the next 120 days we plan on closing a number of deals mentioned above: to push the accounting to the auditors; to comply with the OTCBB’s regulations and listing standards; to further improve the balance sheet: and lastly and most importantly to increase shareholder value.
Please continue to keep track of Radiant’s progress via our web site and other social media. We invite you to follow us on Twitter, Facebook, Linked In, and Google + all of which are linked from our web site.
RADIANT OIL & GAS, INC.
John Jurasin Chairman, President and Chief Executive Officer
This press release may contain forward-looking statements, including information about management's view of Radiant Oil & Gas, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of ROGI, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on ROGI’s future results. The forward-looking statements included in this press release are made only as of the date hereof. ROGI cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, ROGI undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by ROGI.