01.27.2017

Interesting and potentially fruitful discussions with an experienced geophysics contractor are ongoing regarding positive geophysical indications of a shallow but potentially large oil resource at shallow depth. We are formulating an agreement to work with them on this on-shore oil exploration project in the continental United States. Our potential partner is telling the us this is a shallow prospect that could be quite large. Research is ongoing to determine its commercial viability.

Among the options under discussion is to put the profits from any success to work on at the Hay Mountain drilling targets. While the talks are early stage, and we do not know whether they will progress to a final agreement they open new possibilities for financing Hay Mountain Phase 1 drilling or beyond, and thus we want to make shareholders aware of this potential

Because President Trump has stated that he wants to have the USA independently supplying its own energy, and this will be going along with the President’s direction, we believe oil exploration will take an upward trend. ~Jim Briscoe~

More on the topic from James A. Briscoe – 01.30.2017:

I will say this to add to the original statement; we have been interacting with the geophysicist in question for approximately one year. He has some proprietary geophysical techniques, which he is very guarded about releasing specific details. His is in a very competitive business and that is where he makes his money, so we understand that. He comes recommended by a longtime friend and investor whom we trust in his veracity.

I have been in the exploration business for a long time and I have learned that the adage “gold is where you find it” is quite true in many cases. For example, when invisible gold was accidently discovered at Carlin Nevada, and verified by standard fire assays it was unbelievable to most gold geologists. Historically over thousands of years gold was easy to detect because it was visible in nuggets or small crystals and easily concentrated by “panning” (by using a standard gold pan or cow’s horn). These crystals of gold at Carlin were sub-micron in size, could not be concentrated by “panning” and could only be seen with an electron microscope which prospectors and field exploration geologists do not possess. This was called “no- see- um” gold for many years and is now referred to as “submicron gold.” It has made the State of Nevada (completely unexpectedly), as Nevada was known as the Silver State the new Gold State and California which was known as the Gold State, – once one of the largest gold producers in the world has lost its stature as the Gold State, to Nevada.

Who, in mining circles, would have ever thought of it or believed it before it became the “new reality.”

When I was with The American Smelting and Refining Company gold exploration team in 1967, we and other company team geologic cohorts were chosen to examine  Carlin  firsthand, and one of the first group of outsiders to see it because of old friendships between the two companies. Nobody believed that this was anything other than a fluke and could not exist except in maybe this one small locality. The US Geological Survey (USGS) declared that Carlin was an oxide deposit, and shallow in thickness. My training in leached capping interpretation (from Silver Bell, AZ) caused me to recognize that this was surficial oxidation and “the shallow in thickness”, would turn into sulfide mineralization within a few hundred feet.  And it did! But the gold was still submicron in size and present in the same amounts. Both ideas that 1) this was a small area, and 2) that the USGS misinterpreted the nature of the mineralization, which suggested these were shallow deposits were wrong.  In fact it was (and is) a very large deposit that ran to great depth (4 to 5 thousand feet deep) with the deposit, and those like it, related to intrusive igneous rocks intrusions.    Carlin was the first of many such targets, not an isolated incidence and similar deposits are being found elsewhere in the world. It showed that assumptions must preliminarily be both relied on but questioned in the exploration process.

I am a keen observer of geologic phenomena, and I have recognized many areas of potential that my clients disbelieved only to have missed billions of dollars of mineral production.  I can be specific about those locations. If there is specific inquiry, I can answer in detail as time allows, although our mission at Hay Mountain remains my primary focus. Therefore, I have come to believe the logical interpretation of any qualified person or persons if they have good rationale for their interpretations should be carefully considered – unless disproven by competent examination and sufficient testing.

The concept of near surface geophysically indicated oil, based on valid geophysical and geological parameters that seem believable based on historical findings suggests that we should investigate this opportunity further. This is a competitive business because of the gold rush mentality of explorationists. Our potential partner does not wish to lose his advantage because of premature revelation of its location, other than to reveal it is in the continental United States. So I don’t know where it is but will know in due time with the exchange of confidentiality agreements. I understand and respect his reasoning. Thus, my description of it in the Agoracom post was necessarily vague for that reason. Also, I have not personally investigated the site but will before we make formal agreements, aside from mutual confidentiality agreements, and I will seek the advice of other oil and geophysical consultants. That is the logical sequence of events for exploration and investment of our time and/or money.

Further, the SEC (Securities and Exchange Commission) requires that all investors and other interested parties be notified simultaneously of this type of information. It is illegal for me to discuss anything with individuals thus giving them an advantage over everyone else. Therefore, it was incumbent on me to make our shareholders aware of everything that we consider at an appropriate time and then they can make their decisions on their own.

I never engage in fluff nor misleading statements. I do adhere to my view of fairness to our shareholders, and I do have to adhere to existing regulations and what is fair.

As we get new information about this possible opportunity, we will evaluate and give everyone an update as to whether it is still potential or whether it has been washed out for some scientific or other valid reason.

I think the idea has merit now, and that is the reason for the information release on Friday [1.27.2017]. As background, I suggest anyone interested review a wonderful book chronicling the history of the art and science of oil exploration, Trek of the Oil Finders: A History of Exploration for Petroleum [1975].  Mr. HL Hunt, of Hunt Oil became a very wealthy man by executing (drilling) on this kind of information. There are many other examples of unique techniques and ideas that have led to oil discoveries all over the world within the pages of this interesting and illuminating book.  Jim Briscoe