PGI Energy in Partnership to Build Power Plant In Nigeria

PGI Energy, an energy holding company, headquartered in Houston, Texas, today stated in a letter to shareholders that ” they have entered into partnership with J & L INSTRUMENTATION & POWER, LLC AND KNOX J & L ENERGY SOLUTIONS LIMITED to build power plants in Nigeria”

Read the letter below:

Dear Shareholders

PGI Energy’s management team wanted to take this opportunity to address the shareholders. PGI’s management team and staff are working daily and aggressively to develop its business plan. The company embarked upon an aggressive growth plan five months ago to develop in multiple markets to build the next great energy company.

Our plan included development of a logistics and transportation division, commodities trading division, alternative energy division, and other synergistic divisions. As a result of these aggressive plans we have established PGI Energy Transportation and Logistics, Inc. to facilitate transportation of commodities products for PGI and clients as a freight broker. We secured appropriate broker license with the Federal Safety Administration and became bonded and secured a line of credit for that division. We bided contracts to transport freight and won a significant contract with a major pipeline fabricator for 80 loads to transport; however our creditor would not allow the line of credit to be used for that client as they pay too slowly. Nonetheless, we continue to develop that business division.

We developed PGI Energy Trading commodities division through development of a trading desk account with Coquest as our introducing broker, FCstone as our clearing house, and Web Ice as our electronic trading platform for trading commodities futures. We admit we have been too quite to announce physical commodities trading contracts as they have developed. We have had great earnings expectations regarding the performance of those contracts based upon the terms defined therein and profit margins negotiated with refineries and other sellers regarding Diesel, Jet Fuel, and Crude Oil.

We previously underscored the complexity of these contracts and the many terms defined therein that required explicit performance by us and counterparties to close those transactions. As a result of our underestimating that any provision of a contract not complied with could result in the contract not closing resulted in contracts not performing as planned. In our rush to disclose pending contracts to shareholders we failed to anticipate non-performance by third parties. A contract failed because bankers for each party would not comply with procedures outlined and agreed to by the counter parties. The legal department of both banks advised there bankers that they bankers could not perform the requisite provisions of the contract. This resulted in a loss of profit to us, because we had a purchase and sale agreement among parties.

A sale contract in commodities can fall apart as a result of testing the commodity against the specifications for the product and if the specs are not the same as the contract then the buying party has the right to reject the purchase and cancel the agreement. We engaged in a contract negotiated by a highly reputable law firm representing the seller in a transaction where we had an exit buyer for the product. We performed upon the contract and the other party provided false proof of product documents which we are required to verify before consummating the transaction to avoid being defrauded by counterparty. We discovered in that transaction that the law firm provided us with false proof of product documents as verified by third parties. Thus, we did not consummate the transaction.

Notwithstanding the above, we are very active in the physical commodities space and have active contracts pending closing, provided all the prospective counterparties perform. We do not publish those contracts because they routinely contain non-disclosure clauses in the agreements and often contain detailed banking information for all parties. We will continue to try our best to maintain transparency for our shareholders and produce contracts where appropriate and that are consummated.

We revamped our corporate website to provide more significant details about contract provisions for our shareholders. Some contracts have to be redacted because of sensitive information. Questions have arisen regarding our contracts for JV partnerships in two previously announced oil fields. We entered into those agreements expecting we could perform upon the terms of the agreements. We still maintain a relationship with the Callahan County Regular Field operator Cynergy Partners, who offered to extend the contact. We terminated the other oil field development agreement because in our final due diligence phase we discovered they were not the actual title holders and were attempting to get us to pay for the purchase of the asset and development under the ruse they already owned the property. Thus, we saved the company from being defrauded.

Within the past five months we have developed several strategic partnerships that will grow our company organically; mostly through the alternative energy space which most major oil companies are now transitioning. We established PGI Green E & P, Inc as a viable entity to develop and distribute syn gas units to hospitals, casinos, and race ways which will produce electricity to the grid reducing their utility cost annually by approximately 20%. These units will also produce a biochar that will be sold to retailers for consumer and commercial agribusiness development. We signed that agreement with Waste to Energy Solutions which formed a consortium of vendors and feedstock providers. Our role is to provide the financing solutions for manufacture and leasing these units, operating, transporting feedstock and product to market.

We further entered into the highly competitive wood pellets market to construct and operate wood pellets facilities with our partner Ex-Factory. The construction of this facility takes approx. 9-12 months. We are actively planning strategic locations for the facilities near feedstock providers, working on warranty policies and risk insurance provisions required by our institutional investor. We entered into partnership with Esperotia Investments of Cyprus to be our on the ground sales representative in the UK as they are very active in the utilities business throughout Europe. They are aggressively seeking strategic acquisition candidates for us in Europe.

We are actively negotiating with a major synthetic crude manufacturer to become there exclusive finance arm and distributor of their technology to waste recyclers and municipalities on a commercial scale.

We have entered into partnership with J & L INSTRUMENTATION & POWER, LLC AND KNOX J & L ENERGY SOLUTIONS LIMITED to build power plants in Nigeria and targeting Southern Sudan next. We have recently entered into partnership with Structural Dynamics Engineering to construct and sale land drilling rigs, top drives and mobile drilling rigs. We bridged the gap by adding as our strategic partner BGI Contractors a top tier fabricator to construct the drilling rigs to specification as they have extensive experience in this arena having built $150 million drilling rigs for major drilling services companies. This bridge was necessary as a requirement by our institutional investor to obtain performance bonds consistent with industry standards for the contracts pending. They had the capacity, experience, and capability to mass produce these rigs as orders pour in.

We have not lightly developed these partnerships but have put in place a plan for performance and profitability. “We wish to convey our vision to our shareholders that we are a true growth company with a global strategy for building a legacy, the next major energy company.” We receive calls from investors daily and emails questioning and challenging our business model. Many of the calls are from day traders trying to pressure our staff and glean inside information about the companies next moves. We have a disclosure committee which consists of our CEO and general counsel, Marcellous McZeal and Lionell Johnson, CFO and former State of Texas Banking Regulator. The integrity of our management team is very important to us.

The way to determine whether management interest is aligned with investors is their percentage of ownership in the company. We collective own the majority of the company shares and have not sold any of our interest in the company. We recently increased our authorized shares to 2 billion from 1 billion with the intent to sale shares to institutional investors who have expressed a serious interest in long term investment into the company for a significant ownership interest representing approx. 35% in exchange for operating capital and acquisition funding. We are considering all options in the growth of our company for the long term survival and future of the company including vetting acquisition targets for up listing and considering move to the Frankfurt Exchange, a more robust market place to increase shareholder value. Day traders and market makers put pressure on the stock trying to make a quick profit. We inherited approx. 500 shareholders and we get daily questions and comments from about 10 shareholders who want to make an instant stock profit daily without patience. Accordingly, they post negative blog comments. Thereafter, there are the short sellers who are motivated to drive the stock price down. We have posted our share structure on the company website. There are approx. 600 million shares in the public float and market makers are among our heaviest traders. We are confident that once we start to post solid earnings are the stock price will rebound. We are still planning to implement a new market awareness campaign, however, we are not promising an exact beginning date. However, it will be soon.

We would hope our shareholders embrace our long term vision and hold long, as we have no intentions to exit this company in the foreseeable future. The founders Robert Gandy and Marcellous McZeal plan to leave this companies’ management to their children and grandchildren, through strategic succession planning.

About us

PGI Energy, Inc. is an energy holding company, headquartered in Houston, Texas. The company’s purpose is to acquire assets in the proven producing oil and gas assets, refinery and pipeline sectors of the energy industry and other synergistic assets. The company will only acquire proven producing oil and gas assets.

PGI has formed several partnerships to grow its core business organically through strategic alliances diversifying its interest in green energy through biomass production, waste to energy, wood pellets production, syn gas, bio char production and plastics to synthetic crude. PGI has several core divisions which provide support to its operations and customers such as PGI Transportation & Logistics, PGI Manufacturing & Engineering and PGI Commodities Trading.

For more information visit: WWW.PGIEnergy.us or Email: [email protected]

SOURCE: PGI Energy, Inc.

One Comment

1. 

   Chris81964

   September 21, 2011 at 1:25 am

   They are public company in Houston and there is no mention of this on their website