VELOCITY
OIL AND GAS, INC.
Office
of the President & Chief Executive Officer
Dear
Sir/Madam,
Re: New
Outlook, 2009, Velocity Oil and Gas, Inc. (VOIG: OTCBB)
Introduction
As I
build the Management team, which I lead, and help the Company
formulate and act on strategic plans for the New Year, I thought it
wise to set out a condensed version of our New Outlook for this New Year of
2009.
Our goals
are in sharper focus as the USA and even the World faces economic stress, with a
tremendous concern on energy----finding and producing oil and gas especially
when our Nation is faced with war and threats.
While we
build assets, operations, and shareholder value, we appreciate the consideration
we seek as a small company trying to employ more people, a small contribution to
the battle against rising unemployment, and develop and flow producing oil and
gas ventures seeking profits and national security in light of the new President
and his new administration; their goal of reducing our country
reliance upon foreign oil and gas.
Background
& Plans
Our
operations and assets are focused and ongoing, as is typical with most oil and
gas exploration companies, being summarized in stages, which may flow
systematically or overlap or shift: establish protocols for
property/deal acquisition and drilling plans including locating, negotiating,
analyzing and acquiring properties or deal opportunities, selecting team players
in oil and gas; and next step being major funding, exploring, producing and
selling what may be the World's most valuable commodity after food, air and
water, Energy, with a capital "E."
While the
Company was incorporated in April of 2006 to develop upstream oil and gas
properties, after a considerable selection period with hard work and efforts,
the Company operations helped us to acquire an interest in five offshore
exploration licenses in the Gulf of Mexico in November 2007. The portfolio was
further enhanced in 2008 when the Company secured participation in the upcoming
drilling of West Cameron 629 and converted its “participation rights” in South
Marsh Island 138 to a full 40% “working interest," the results of planning, work
and negotiations. We don't believe we are a shell company, given our active
business pursuit beyond nominal or no operations and assets unrelated to cash
and cash equivalents. These assets place operational demands on us to foster and
monitor the third party relationships, stay abreast of the scientific and
related research and innovations, such as geological information, and operate in
a viable fashion the early stages of what may be a major oil and gas player in
the time ahead.
The
Company is now intent on raising exploration funds to drill at least two wells
in 2009.
With the
current oil price and financial markets on the rise again we believe that the
prospects for a successful company are excellent.
We are
also very focused on joint venture and other deals with industry members so as
to pool resources and relationships spreading out initial costs at the
acceptable condition of sharing in results. We intend to actively seek
candidates to work closely with us. For example, while we may have drilling
rights, we may not have the resources another firm has to undertake the
drilling, and working together we may build ongoing team projects.
Of course
we are always evaluating new projects for Velocity and acquiring production in
2009 is the highest priority. While we stay focused on oil and gas, we are
considerate of related energy pursuits that may have synergy with our plans,
such as green or alternative energy technologies which need a company like ours
to partner with to move to the next level.
One word
of caution. The oil and gas industry is highly volatile, capital intensive and
exploration for hydrocarbons is risky. Velocity is a
development company compounding those risks and whilst we have the
confidence that we can make Velocity a success, no success is
assured.
We look
forward to working with you and returning, if successful, significant value to
our patient Velocity shareholders.
Sincerely
Yours,
James
Moses
President
& CEO
