Dear Valued Investor Partners,
We trust you are all keeping well.
In this portal update, we are pleased to share with you a significant development in our ongoing efforts concerning the MXP legal case. This week, our legal team presented compelling evidence in court regarding MXP's misuse of funds from the cash collateral order while in Chapter 11 bankruptcy.
The proceedings took a notable turn when the presiding judge, upon hearing our attorney's arguments, promptly intervened, emphasizing that MXP must seek approval for any expenditure and extended the Chapter 11 status until April 30th to ensure proper oversight. From all accounts, Judge Rhoades stopped our attorney halfway through because she had heard enough, and she ferociously addressed MXP while pointing her finger, stating they could not spend even one dollar without our approval.
Marking another positive development, we have gained substantial control over the operational aspects, allowing us to hire our personnel for pumping, water hauling, and selecting the oil purchaser. This increased level of control promises greater oversight and transparency throughout our Seminole County project. To facilitate these operational changes, we have enlisted the expertise of OGP, who will aid in the implementation process over the next 1-2 weeks.
The outcome of the latest court hearing, despite MXP's ongoing Chapter 11 status, marks a significant step forward for us. We are confident that with Judge Rhodes' deeper understanding of our position and MXP's actions, we are steadily progressing towards reclaiming full control over our wells and the project.
We extend our gratitude for your unwavering support throughout this entire process.
Warm regards,
The ASE Team
