Gateway Resources, Ltd.
28 Jun 2011
If I could save up enough money I would like to encourage CNRL to get Grand Forks back on production. However as broke as I am, I don't see how that is going to happen in the near future. Oil prices slumping will also be a factor, as at this time I have no idea how low things would go. I would hate to spend a bunch of money re-establishing production just to have it fall to poor values.
4 Oct 2010
We continue to hobble along with no cash flow coming in from Grand Forks. The money we have had to pay for expenses has come from repayment of inter-company funds from Gateway Resources USA, Inc. Provided the US company can survive it's difficulties, then there is a chance we can raise the funds required to repair the Grand Forks well. However it remains to be seen how that will all turn out.
25 Mar 2010
Our Grand Forks production has been shut in. The operator CNRL quotes a price of $38,000 to get the well going again. The number is shocking for me as we fix holes in the tubing for a few hundreds or maybe a couple of thousand if I had to change everything out. But they want to gold plate it all and so I think it will be off for some time to come.
Our greatest asset lies in the investment we made in Gateway Resources USA. Much of that investment, besides shares is held in paid in capital to the US company. We expect to begin receiving additional payments on these funds, of which we will turn again and loan them to the US company via Gateway Oil and Gas. Our current loans to the US company has increased to $17,586.
From Last Year but still pertinent:
The value of Gateway Resources Ltd. shares lies squarely on two main items as observed on the financial statement. That is the value of funds "due from subsidiary" and the value of the shares purchased in Gateway Resources U.S.A., Inc. Should these funds be returned at face value, the value of Gateway shares would be near $0.50 ea. How exactly to bring this return of funds about is another question.
The actual funds invested in Gateway USA were placed into drilling and development of new leases in Oklahoma, and the results of these investments were marginal at best. However, because Gateway USA purchased other oil leases, and earned new monies by selling oil and gas, the value of Gateway Canada's investment has been mostly retained. In addition the value of the Canadian dollar has reached a high against the US currency.
It seams reasonable that, if the value of Gateway Canada's investment could be locked in and eventually returned at the current value, then the value of the shares would represent a good come back in comparison to the degree of low value experienced in recent years. Should the Canadian dollar fall back to prior levels, and the amount "due from subsidiary" was returned at current currency levels, that the value to our Canadian shareholders would be augmented.
I am contemplating scenarios that return the value of the US investment to the Canadian shareholders and allow them to liquidate their investment or convert this investment into ownership directly in Gateway USA. My favorite plan is being reviewed by our accountant at this time, and I hope to be able to announce a plan soon.
I also have began early stages of forming a new 100% US subsidiary of Gateway Resources, Ltd. This new entity, Gateway Oil & Gas, Inc., would facilitate handling funds that Gateway Resources, Ltd. invests in US opportunities. Should the funds "due from subsidiary" be returned, they would be re-invested in additional US opportunities to earn interest and possibly participate directly in oil gas investments.
As a significant shareholder of this company I am most interested in making sure we, as shareholders, get the most value returned for our investment as possible. Some of us are ready to sell our shares, others like myself, would just as soon see my investment ride, and see what can be done with the money to further increase value.