SALMON ARM, BRITISH COLUMBIA, Tuesday, August 12, 2008 – Valor Energy Corp, (“Valor”) (Symbol - VLRN.PK), an energy development and production company, is pleased to offer its shareholders and other interested investors an update on notable events concerning the company. It is Valor’s intention to continue these updates at intervals during the year or when events warrant it.
Situational Summary
Valor CEO, Mr. Sheridan B. Westgarde, provided the following summary to shareholders: “We have just completed the normal field and draft processes on schedule, in the preparation of our Annual Report that will be filed on Form 10-KSB. Our auditors will now complete their procedures, with my full expectation being, that filing will occur within the time frame as provided for under SEC regulations for “fully reporting issuers” as ourselves. We are current in our financial reporting and we fully qualify to apply for relisting on the Over the Counter Bulletin Board (OTC:BB) listing service. We are in the early phase of that process.”
“Certainly, there is valid concern being expressed in the low performance of the market price of our stock, however our company fundamentals have never been stronger. Since May of 2008, our principal investors have elected to convert Valor debt into significant amounts of equity. I believe that such conversions have resulted in obvious pressure and may have created the perception in the market of a level of company weakness that we believe does not exist. While performing these conversions maintains our contractual obligations, we are in ongoing discussions with our financiers in an effort to achieve much more positive results in our market capitalization. We intend to announce positive information regarding Valor revenues, reserves and growth activities in the coming weeks.”
Mr. Westgarde continued, “Recently, certain events have transpired (that are not described here), involving a company who is both the project operator and the major joint interest participant in the Sargent South Field, Hamill, and Hamill leases, which have caused concern among some of our shareholders. I would like to reassure investors that we have been unaffected by these events to date and do not expect any problems in the future. Our assets in this field are secured at the state and county levels and operations are proceeding without interruption. We have been given assurances that development plans for these leases will proceed as expected and our lawyers are continuing to closely monitor the situation to ensure our interests remain unaffected. As disclosed in our recent filings financial filings with the Securities and Exchange Commission, we are planning to participate in the development of the reserves in place on the project. As of January 2007, our report issued by R.A. Lenser and Associates Inc., Consulting Petroleum Engineers and Geologists of Houston, Texas, reported Valor reserves of 44,000 MCF proved producing, 205,000 MCF proved undeveloped and 2,064 MCF (2.06 billion cubic feet) of possible undeveloped reserves.”
CEO’S Preferred Stock Holdings
In April of 2007, Sheridan Westgarde, CEO, received 2,007,194 shares of Series A Convertible Preferred shares in exchanged for stock commitments and approximately $300,000 of monies owed to him, including cash loans provided to Valor. The Certificate of Designation for these shares, as filed with the Nevada state and the Securities and Exchange Commission, provide for these shares to convert into approximately 123 million shares of the company’s common stock. During May of 2007, Mr. Westgarde filed a letter with Valor and its Board, irrevocably canceling the conversion rights pertaining to these preferred shares. Mr. Westgarde commented regarding his actions, ”I did this because I wanted to demonstrate my commitment to the process of building this company.” He continued, ”I want to ensure that Valor is managed in a way that is in the best interests of its shareholders and debtors.”
Recent Transaction
During January 2008, the Company sold all of its interest in a large scale manipulator system technology, to Hollund Industrial Robotics Inc. Mr. Westgarde summarized the transaction benefits, “Selling this technology to Hollund has accomplished major objectives for us. We have been able to improve shareholder value by canceling the only other remaining block of 1,776,196 Series A Convertible Preferred shares held by a former executive. This preferred stock, if converted, would have resulted in an increase to the outstanding common of 108,347,956 shares. The cash that was committed in the deal has already generated important cash flow to fund our proven natural gas development in the Sargent South field operations. Also, the transaction involved Hollund assuming certain other weighty stock commitments and the elimination of certain notes payables from the Company’s balance sheet, further improving our Company’s liquidity and cash flow. The elimination of additional R&D expenses, required to commercialize the technology, is consistent with our continued focus on increasing operations and revenue in our primary energy sector. Additionally, we have reduced our shareholders exposure to development risk that is inherently associated with any new technology development. Valor is considering potential opportunities that may be available to market this technology in related industries going forward. The Company is currently working on several initiatives to enhance the Company’s value through diversification in the energy sector. We would like to thank our shareholders for their patience and continued support.
About
Valor Energy Incorporated in Nevada, Valor Energy Corp (VLRN) is an energy development and production company with working interests in Texas and plans for expansion to Canada. Valor Industries Ltd., (VIL), VLRN’s wholly owned Canadian subsidiary, provides proven management to VLRN to create long term value for shareholders and partners. For more information, log on to www.valorenergy.com.
