The principal stated aim of Pluris Energy Group Inc (OTCBB:PEYG) is to transfer its oil and gas production business to South America. 2007 was a satisfactory year for the company by this account, because it progressed due diligence of a key 2006 acquisition, announced a second acquisition, and has hinted at a third taking shape shortly. Argentina is the common recipient of all these take-over moves. Pluris Energy Group Inc (OTCBB:PEYG) is clearly set to be a significant player in that country’s oil and gas production.
Business management purists will applaud three strategic achievements of Pluris Energy Group Inc (OTCBB:PEYG) during 2007. The first is that the company has reportedly reduced debt by about $700 thousand for the first nine months of the last calendar year. This is significant for a company in an inorganic growth mode. Secondly, Pluris Energy Group Inc has management control options, if not exclusive ownership of all the Argentinean companies it has acquired. Finally, Pluris Energy Group Inc has taken local geologists and engineers on board, as part of rigorous and due diligence to confirm the values of net and potential assets it has acquired.
The exit costs for Pluris Energy Group Inc, in case technical surveys fail to confirm the oil and gas deposits that are hopefully in the properties and concessions the company has won, are unclear. This aspect, along with low probability political changes in Argentina away from free enterprise and foreign capital, make OTCBB:PEYG suitable for stock investors looking for relatively high appreciation, and who are not averse to low probability risks.
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