Last month was a very disturbing month. We received a letter and the “Notice of Foreclosure Sale” documents from Magnus Oil & Gas Corporation addressed to Oilpods. Here’s the content of the letter:
“This letter is sent to you as a Non-Operator in the above referenced Operating Agreement. As you are aware, notice has been given of the impending Nonjudicial Foreclosure Sale of the property described in the Operating Agreement scheduled for Jul 1, 2008. Please be advised that Magnus has instructed the undersigned to send you a Corrected Notice of Foreclosure sale to correct certain erroneous statements contained in the original notice. Enclosed is a copy of the Corrected Notice of Foreclosure Sale for the sale of the property subject to the security interest granted in the Operating Agreement. If the amounts owing under the terms of the Operating Agreement are not paid before that time, the security interest will be foreclosed on the time and date and at the place provided in the Corrected Notice of Foreclosure Sale.”
After checking with the consultant that served us, we were informed that PWDR owed Magnus some money before they sold their Working Interest to Oilpods. I’m very surprised that Mark Chang, being one of the ex-BOD was not aware of it.
Yesterday, we received a letter from Oilpods stating that their PWDR has filed an application for Temporary restraining order, Temporary and Permanent Injunction against Magnus. The foreclosure is hence temporary on hold, pending a hearing on July 10th 2008.
Looks like there’s nothing much we can do now but to wait for the result. Meanwhile, if you happened to be an investor of Oilpods, please drop me an email. Perhaps we can all get connected and discuss what other alternatives we may have as a group.

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