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| AEXP.OB > SEC Filings for AEXP.OB > Form 10KSB on 25-Mar-2008 | All Recent SEC Filings |
25-Mar-2008
Annual Report
The following discussion of the plan of operation, financial condition, results of operations, cash flows and changes in financial position of our Company should be read in conjunction with our most recent financial statements and notes appearing elsewhere in this Form 10-KSB; and our SB-2 Registration Statement, filed on March 5, 2006.
Minhas Energy is a development stage consulting engineering company with very limited operations to date, no revenue, very limited financial backing and few assets. Our plan of operations is to establish Minhas Energy as a company that will seek out oil and gas consulting engineering opportunities in Alberta, British Columbia and Saskatchewan. We will initially concentrate on providing consulting engineering services in the reservoir and petroleum engineering and production facilities engineering segments of the oil and gas industry. We chose this segment because there is currently high demand for consultants, and we believe demand will continue to increase in the foreseeable future. These are also segments that small business such as ours that lack financial and manpower resources, can enter into far more easily than other integrated engineering services or general contracting businesses.
Our business objectives are:
* To become a well recognized and respected consulting engineering
company oil and gas companies in Alberta, British Columbia and
Saskatchewan, with a focus on reservoir/petroleum engineering and
facilities engineering and project management.
* To develop a well rounded client base and contacts from which we can
generate revenues and become profitable.
* To build long term relationships with many of the oil and gas
companies to expand our business and service offerings
Our goals over the next 12 months are:
* Build awareness of our company in our target market through a program
of direct contact and advertising through selected media that is
focused on our prospective clients
* Achieve revenue by December 31, 2008.
* Achieve break even operations over the next 18 months
During 2007, we set up our Website www.MinhasEnergy.com , compiled a list of perspective customers and companies by researching Nickle's Oil Bulletin, OIlweek and other industry publications. We also attended the International Gas and Oil (GO) Exposition held in Calgary June 12 to 14, 2007 where there were 600 exhibitions and had 20 000 attendees. This was very helpful in maintaining our understanding of the industry and talking to various perspective clients. We also attended APEGGA (Association of Professional Engineers Geologists and Geophysicists of Alberta) Luncheons and member meetings. Various meetings were held with perspective clients. Cold calls were also made and a brochure has also been prepared.
Plans for 2008 consists of finishing the CD/DVD, preparing designs and contents of the billboards, booking booths at Tradeshows including APEGGA Annual Convention, Heavy Oil Shows in Edmonton and Regina. Also cold calls will be made and further meetings will be held with perspective consultants. We will also prepare to do a targeted mailing of our CD/DVD as well as brochure.
During the first stages of Minhas's growth, our officers and directors will provide all the labor required to execute our business plan at no charge. Since we intend to operate with very limited administrative support, our officers and directors will continue to be responsible for all labor required to market our services to prospective clients and perform any professional engineering services for at least the first year of operations. If we manage to obtain engagements or contracts that necessitates the need for additional professional personnel, we plan on obtaining these services on an hourly contract basis only. We presently have no intention to hire additional employees during our first year of operations. Due to our limited financial resources, each of the management team will dedicate approximately 10 - 20 hours a week in order to carry out our operations.
Our future operations are also dependent upon the identification and successful completion of additional long-term or permanent equity financing, the support of creditors and shareholders, and, ultimately, the achievement of profitable operations. There can be no assurances that we will be successful, which would in turn significantly affect our ability to roll out our business plan. If not, we will likely be required to reduce operations or liquidate assets. We will continue to evaluate our projected expenditures relative to our available cash and to seek additional means of financing in order to satisfy our working capital and other cash requirements.
Our company posted losses of $60,078 for the year ended December 31, 2007 compared to $9,055 for the prior period from our incorporation on May 11, 2006. From inception to December 31, 2007 we have incurred losses of $69,133. The principal component of these losses was marketing expenses of $32,510 (2006-$2,100) and general and administrative expenses of $27,181 ( 2006- $4,891).
At December 31, 2007 we had working capital of $32,550, compared to working capital of $91,959 at December 31, 2006. At December 31, 2007 our total assets Consisted of cash of $35,550 and net capital assets of $1,567. This compares with total assets at December 31, 2006 of $91,959 and $2,236 respectively.
At December 31, 2007 our total current liabilities, all accounts payable, increased to $3,000 from $nil at December 31, 2006.
We had $35,550 of cash at the beginning of our 2008 fiscal year. We currently believe our cash resources are only sufficient to satisfy our needs over the next 4-6 months if we cannot generate any revenues. Cash on hand is presently our only source of liquidity. We do not have any lending arrangements in place with banking or financial institutions and we do not anticipate that we will be able to secure these funding arrangements in the near future. To the extent that we require additional funds to support our operations or the expansion of our business, we may attempt to sell additional equity shares or issue debt. Any sale of additional equity securities will result in dilution to our stockholders. There can be no assurance that additional financing, if required, will be available to our company or on acceptable terms.
We do not anticipate making any major purchases of capital assets in the next 12 months, or conducting any research and development. Our current corporate employee count is expected to remain the same for the next 12 months unless we are successful in procuring engineering contracts that require additional manpower.
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