x
|
Quarterly
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the quarter ended March 31, 2009 or
|
|
o
|
Transition
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the transition period from ___________ to
____________
|
U.S.
ENERGY CORP.
|
(Exact
Name of Company as Specified in its
Charter)
|
Wyoming
|
83-0205516
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
877
North 8th
West, Riverton, WY
|
82501
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Company's
telephone number, including area code:
|
(307)
856-9271
|
Not
Applicable
|
Former
name, address and fiscal year, if changed since last
report
|
Class
|
Outstanding
Shares at May 6, 2009
|
|
Common
stock, $.01 par value
|
21,285,129
|
Page
No.
|
||
PART
I.
|
FINANCIAL
INFORMATION
|
|
ITEM
1.
|
Financial
Statements
|
|
Condensed
Balance Sheets as of March 31, 2009 (unaudited)
and December 31, 2008
|
4-5
|
|
Condensed
Statements of Operations for the Three Months Ended March 31, 2009 and
2008 (unaudited)
|
6-7
|
|
Condensed
Statements of Cash Flows for the Three Months Ended March 31, 2009 and
2008 (unaudited)
|
8-9
|
|
Notes
to Condensed Financial Statements (unaudited)
|
10-17
|
|
ITEM
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18-25
|
ITEM
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
25
|
ITEM
4.
|
Controls
and Procedures
|
26
|
PART
II.
|
OTHER
INFORMATION
|
|
ITEM
1.
|
Legal
Proceedings
|
26
|
ITEM
1A.
|
Risk
Factors
|
26
|
ITEM
2.
|
Changes
in Securities and Use of Proceeds
|
27
|
ITEM
3.
|
Defaults
Upon Senior Securities
|
27
|
ITEM
4.
|
Submission
of Matters to a Vote of Shareholders
|
27
|
ITEM
5.
|
Other
Information
|
27
|
ITEM
6.
|
Exhibits
and Reports on Form 8-K
|
28
|
Signatures
|
29
|
|
Certifications
|
See
Exhibits
|
U.S.
ENERGY CORP.
|
||||||||
CONDENSED
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
(Amounts
in thousands)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 2,985 | $ | 8,434 | ||||
Marketable
securities
|
||||||||
Held
to maturity - treasuries
|
41,771 | 51,152 | ||||||
Available
for sale securities
|
1,030 | 576 | ||||||
Accounts
receivable
|
||||||||
Trade
|
368 | 600 | ||||||
Reimbursable
project costs
|
110 | 442 | ||||||
Income
taxes
|
6,573 | 5,896 | ||||||
Restricted
investments
|
-- | 4,929 | ||||||
Prepaid
expenses and other current assets
|
676 | 738 | ||||||
Total
current assets
|
53,513 | 72,767 | ||||||
INVESTMENT
|
3,364 | 3,455 | ||||||
PROPERTIES
AND EQUIPMENT:
|
||||||||
Oil
& gas properties under full cost method, net
|
7,279 | 7,906 | ||||||
Undeveloped
mining claims
|
22,952 | 23,950 | ||||||
Commercial
real estate, net
|
23,861 | 23,998 | ||||||
Property,
plant and equipment, net
|
9,557 | 9,639 | ||||||
Net
properties and equipment
|
63,649 | 65,493 | ||||||
OTHER
ASSETS
|
995 | 916 | ||||||
Total
assets
|
$ | 121,521 | $ | 142,631 | ||||
U.S.
ENERGY CORP.
|
||||||||
CONDENSED
BALANCE SHEETS
|
||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
(Amounts
in thousands)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable
|
$ | 925 | $ | 898 | ||||
Accrued
compensation
|
781 | 682 | ||||||
Short
term construction debt
|
-- | 16,813 | ||||||
Current
portion of long-term debt
|
200 | 875 | ||||||
Other
current liabilities
|
254 | 715 | ||||||
Total
current liabilities
|
2,160 | 19,983 | ||||||
LONG-TERM
DEBT, net of current portion
|
800 | 1,000 | ||||||
DEFERRED
TAX LIABILITY
|
8,510 | 8,945 | ||||||
ASSET
RETIREMENT OBLIGATIONS
|
147 | 144 | ||||||
OTHER
ACCRUED LIABILITIES
|
726 | 726 | ||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Common
stock, $.01 par value; unlimited shares
|
||||||||
authorized;
21,425,829 and 21,935,129
|
||||||||
shares
issued, respectively
|
214 | 219 | ||||||
Additional
paid-in capital
|
93,353 | 93,951 | ||||||
Accumulated
surplus
|
15,316 | 17,663 | ||||||
Unrealized
gain on marketable securities
|
295 | -- | ||||||
Total
shareholders' equity
|
109,178 | 111,833 | ||||||
Total
liabilities and shareholders' equity
|
$ | 121,521 | $ | 142,631 | ||||
U.S.
ENERGY CORP.
|
||||||||
CONDENSED
STATEMENTS OF OPERATIONS
|
||||||||
(Unaudited)
|
||||||||
(Amounts
in thousands, except per share data)
|
||||||||
Three
months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
OPERATING
REVENUES:
|
||||||||
Real
estate
|
$ | 734 | $ | 118 | ||||
Oil
& gas
|
674 | -- | ||||||
Management
fees and other
|
5 | 31 | ||||||
1,413 | 149 | |||||||
OPERATING
COSTS AND EXPENSES:
|
||||||||
Real
estate
|
512 | 167 | ||||||
Oil
and gas
|
812 | -- | ||||||
Impairment
of oil and gas properties
|
1,063 | -- | ||||||
Water
treatment plant
|
443 | -- | ||||||
Mineral
holding costs
|
-- | 171 | ||||||
General
and administrative
|
2,005 | 2,580 | ||||||
4,835 | 2,918 | |||||||
OPERATING
LOSS
|
(3,422 | ) | (2,769 | ) | ||||
OTHER
INCOME & (EXPENSES):
|
||||||||
Gain
on sales of assets
|
5 | -- | ||||||
Equity
loss
|
(91 | ) | -- | |||||
Interest
income
|
87 | 554 | ||||||
Interest
expense
|
(38 | ) | (19 | ) | ||||
(37 | ) | 535 | ||||||
(LOSS)
GAIN BEFORE PROVISION
|
||||||||
FOR
INCOME TAXES AND
|
||||||||
DISCONTINUED
OPERATIONS
|
(3,459 | ) | (2,234 | ) | ||||
INCOME
TAXES:
|
||||||||
Current
benefit from (provision for)
|
677 | 628 | ||||||
Deferred
benefit from (provision for)
|
435 | 46 | ||||||
1,112 | 674 | |||||||
(LOSS)
GAIN FROM CONTINUING
|
||||||||
OPERATIONS
|
(2,347 | ) | (1,560 | ) | ||||
DISCONTINUED
OPERATIONS
|
||||||||
Loss
from discontinued operations
|
-- | (157 | ) | |||||
NET
(LOSS) INCOME
|
$ | (2,347 | ) | $ | (1,717 | ) | ||
U.S.
ENERGY CORP.
|
||||||||
CONDENSED
STATEMENTS OF OPERATIONS
|
||||||||
(Unaudited)
|
||||||||
(Amounts
in thousands, except per share data)
|
||||||||
Three
months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
PER
SHARE DATA
|
||||||||
Basic
and diluted loss
|
||||||||
from
continuing operations
|
$ | (0.11 | ) | $ | (0.06 | ) | ||
Basic
and diluted loss
|
||||||||
from
discontinued operations
|
-- | (0.01 | ) | |||||
Basic
and diluted loss per share
|
$ | (0.11 | ) | $ | (0.07 | ) | ||
Basic
and diluted weighted
|
||||||||
average
shares outstanding
|
21,654,519 | 23,749,056 | ||||||
U.S.
ENERGY CORP.
|
||||||||
STATEMENTS
OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Amounts
in thousands)
|
||||||||
For
the three months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
loss
|
$ | (2,347 | ) | $ | (1,560 | ) | ||
Loss
from discontinued operations
|
-- | (157 | ) | |||||
Net
loss from continuing operations
|
(2,347 | ) | (1,717 | ) | ||||
Reconcile
net loss to net cash used in operations
|
||||||||
Depreciation,
depletion & amortization
|
1,089 | 172 | ||||||
Accretion
of discount on treasury investment
|
(94 | ) | -- | |||||
Impairment
of oil and gas properties
|
1,063 | -- | ||||||
Equity
loss from Standard Steam
|
91 | -- | ||||||
Income
tax receivable
|
(677 | ) | 153 | |||||
Deferred
income taxes
|
(435 | ) | (46 | ) | ||||
Gain
on sale of assets
|
(5 | ) | -- | |||||
Noncash
compensation
|
387 | 1,161 | ||||||
Noncash
services
|
19 | -- | ||||||
Net
changes in assets and liabilities
|
(317 | ) | (491 | ) | ||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(1,226 | ) | (768 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Net
investment in treasury investments
|
$ | 9,475 | $ | (24,886 | ) | |||
Acquisition
& development of real estate
|
(90 | ) | (4,914 | ) | ||||
Acquisition
of oil & gas properties
|
(1,149 | ) | (82 | ) | ||||
Minining
property option payment
|
1,000 | -- | ||||||
Acquisition
of property and equipment
|
(66 | ) | (4 | ) | ||||
Proceeds
from sale of property and equipment
|
5 | 17 | ||||||
Net
change in restricted investments
|
5,298 | 1,792 | ||||||
NET
CASH PROVIDED BY
|
||||||||
(USED
IN) INVESTING ACTIVITIES
|
14,473 | (28,077 | ) | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Issuance
of common stock
|
-- | 1,528 | ||||||
Proceeds
from short term construction debt
|
-- | 4,742 | ||||||
Repayments
of debt
|
(17,688 | ) | (31 | ) | ||||
Stock
buyback program
|
(1,008 | ) | (998 | ) | ||||
NET
CASH (USED IN) PROVIDED BY
|
||||||||
FINANCING
ACTIVITIES
|
(18,696 | ) | 5,241 | |||||
U.S.
ENERGY CORP.
|
||||||||
STATEMENTS
OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Amounts
in thousands)
|
||||||||
For
the three months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
cash (used in) operating
|
||||||||
activities
of discontinued operations
|
-- | (1 | ) | |||||
Net
cash provided by investing
|
||||||||
activities
of discontinued operations
|
-- | 97 | ||||||
Net
cash provided by financing
|
||||||||
activities
of discontinued operations
|
-- | 23 | ||||||
NET
DECREASE IN
|
||||||||
CASH
AND CASH EQUIVALENTS
|
(5,449 | ) | (23,485 | ) | ||||
CASH
AND CASH EQUIVALENTS
|
||||||||
AT
BEGINNING OF PERIOD
|
8,434 | 72,292 | ||||||
CASH
AND CASH EQUIVALENTS
|
||||||||
AT
END OF PERIOD
|
$ | 2,985 | $ | 48,807 | ||||
SUPPLEMENTAL
DISCLOSURES:
|
||||||||
Interest
paid
|
$ | 19 | $ | 18 | ||||
NON-CASH
INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Development
of assets through issuance of debt
|
$ | -- | $ | 10,945 | ||||
Unrealized
gain/(loss)
|
$ | 454 | $ | (282 | ) | |||
(Amounts
in thousands)
|
||||||||||||
Accumulated
|
||||||||||||
Depreciation
|
||||||||||||
Depletion
and
|
||||||||||||
Cost
|
Amortization
|
Net
Book Value
|
||||||||||
Oil
& Gas properties
|
||||||||||||
Unevaluated
|
$ | 3,455 | $ | -- | $ | 3,455 | ||||||
Evaluated
|
4,919 | (1,095 | ) | 3,824 | ||||||||
8,374 | (1,095 | ) | 7,279 | |||||||||
Mining
properties
|
22,952 | -- | 22,952 | |||||||||
Commercial
real estate
|
24,562 | (701 | ) | 23,861 | ||||||||
Building,
land and equipment
|
14,461 | (4,904 | ) | 9,557 | ||||||||
Totals
|
$ | 70,349 | $ | (6,700 | ) | $ | 63,649 | |||||
(Amounts
in thousands)
|
||||||||
For
the three months ending March 31,
|
||||||||
2009
|
2008
|
|||||||
Beginning
asset retirement obligation
|
$ | 144 | $ | 133 | ||||
Accretion
of estimated ARO
|
3 | 3 | ||||||
Ending
asset retirement obligation
|
$ | 147 | $ | 136 | ||||
(Amounts
in thousands)
|
||||||||
For
the three months ending March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
loss
|
$ | (2,347 | ) | $ | (1,717 | ) | ||
Comprehensive
gain/(loss) from the
|
||||||||
unrealized
gain on marketable securities
|
454 | (282 | ) | |||||
Deferred
income taxes
|
||||||||
on
marketable securities
|
(159 | ) | 187 | |||||
Comprehensive
loss
|
$ | (2,052 | ) | $ | (1,812 | ) | ||
(Amounts
in thousands)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Short
term Debt
|
||||||||
Construction
note - collateralized by
|
||||||||
property,
interest at 2.71%
|
$ | -- | $ | 16,813 | ||||
Long
term Debt
|
||||||||
Real
estate note - collateralized by
|
||||||||
property,
interest at 6%
|
$ | 1,000 | $ | 1,875 | ||||
Less
current portion
|
(200 | ) | (875 | ) | ||||
Totals
|
$ | 800 | $ | 1,000 | ||||
(Amounts
in thousands, except for share amounts)
|
||||||||||||
Additional
|
||||||||||||
Common
Stock
|
Paid-In
|
|||||||||||
Shares
|
Amount
|
Capital
|
||||||||||
Balance
December 31, 2008
|
21,935,129 | $ | 219 | $ | 93,951 | |||||||
2001
stock compensation plan
|
20,000 | - | 34 | |||||||||
Expense
of employee options
|
- | - | 352 | |||||||||
Stock
options issued to outside directors
|
- | - | 14 | |||||||||
Expense
of company warrants issued
|
- | - | 5 | |||||||||
Common
stock buy back program
|
(529,300 | ) | (5 | ) | (1,003 | ) | ||||||
21,425,829 | $ | 214 | $ | 93,353 | ||||||||
(Amounts
in thousands)
|
||||||||
For
the three months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Revenues:
|
||||||||
Real
estate
|
$ | 734 | $ | 118 | ||||
Oil
& gas
|
674 | -- | ||||||
Other
|
5 | 31 | ||||||
Total
revenues:
|
1,413 | 149 | ||||||
Operating
expenses:
|
||||||||
Real
estate
|
$ | 512 | $ | 167 | ||||
Oil
and gas
|
812 | -- | ||||||
Iimpairment
of oil and gas properties
|
1,063 | -- | ||||||
Mineral
properties
|
443 | 171 | ||||||
Total
operating expenses:
|
2,830 | 338 | ||||||
Interest
expense
|
||||||||
Real
estate
|
$ | 19 | $ | -- | ||||
Oil
& gas
|
-- | -- | ||||||
Mineral
properties
|
-- | -- | ||||||
Total
interest expense:
|
19 | -- | ||||||
Operating
gain/(loss)
|
||||||||
Real
estate
|
$ | 203 | $ | (49 | ) | |||
Oil
& gas
|
(1,201 | ) | -- | |||||
Mineral
properties
|
(438 | ) | (140 | ) | ||||
Operating
(loss)
|
(1,436 | ) | (189 | ) | ||||
Corporate
other revenues and expenses:
|
(2,023 | ) | (2,045 | ) | ||||
(Loss)
before discontinued
|
||||||||
operations
and income taxes
|
$ | (3,459 | ) | $ | (2,234 | ) | ||
Depreciation
expense:
|
||||||||
Real
estate
|
$ | 232 | $ | 51 | ||||
Oil
& gas
|
713 | -- | ||||||
Mineral
properties
|
15 | 10 | ||||||
Corporate
|
129 | 124 | ||||||
Total
depreciation expense
|
$
|
1,089 | $ | 185 |
As
of
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Assets
by segment
|
||||||||
Real
estate
|
$ | 24,043 | $ | 30,980 | ||||
Oil
& Gas properties
|
8,239 | 8,523 | ||||||
Mineral
properties
|
24,597 | 24,927 | ||||||
Corporate
assets
|
64,642 | 78,201 | ||||||
Total
assets
|
$ | 121,521 | $ | 142,631 | ||||
·
|
Operations
consumed $1.2 million, Investing Activities provided $14.5 million and
Financing Activities consumed $18.7 million for a net decrease in cash of
$5.4 million.
|
·
|
For
a discussion on cash consumed in Operations please refer to Results of
Operations below.
|
·
|
Cash
provided by investing activities was generated primarily through the
redemption of U.S. Government Treasury Bills, $9.5 million, and restricted
cash investments held as collateral for a construction loan, $5.3 million,
for a total of $14.8 million.
|
·
|
Additional
cash was provided by investing activities as a result of the Company’s
receipt of the first of six payments of $1.0 million from Thompson Creek
Metals USA, (“TCM”) as an option payment on the Mount Emmons
property.
|
·
|
Investing
activities also consumed cash through the completion of the development of
its multifamily housing unit in Gillette, Wyoming, $90,000, the
acquisition and development of oil and gas properties, $1.1 million, and
the purchase of property and equipment,
$66,000.
|
·
|
The
Company retired $17.7 million in debt during the quarter ended March 31,
2009. This debt consisted of $16.8 million for the construction
of the Company’s multifamily housing property in Gillette, Wyoming and
$875,000 for the joint purchase with TCM of a parcel of
property.
|
·
|
The
Company also purchased 529,300 shares of its common stock pursuant to its
stock buyback plan which consumed $1.0 million during the quarter ended
March 31, 2009.
|
2009
Period Compared to 2008 Period
|
||||||||||||||||
Three
Months Ended
|
%
|
|||||||||||||||
March
31,
|
Increase
|
Increase
|
||||||||||||||
2009
|
2008
|
(Decrease)
|
(Decrease)
|
|||||||||||||
Production
volumes
|
||||||||||||||||
Oil
and condensate (Bbls)
|
3,618 | -- | 3,618 | 100 | % | |||||||||||
Natural
gas (Mcf)
|
119,259 | -- | 119,259 | 100 | % | |||||||||||
Average
sales prices
|
||||||||||||||||
Oil
and condensate (Bbls)
|
$ | 38.15 | $ | -- | $ | 38.15 | 100 | % | ||||||||
Natural
gas (Mcf)
|
4.94 | -- | 4.94 | 100 | % | |||||||||||
Operating
revenues (in thousands)
|
||||||||||||||||
Oil
and condensate
|
$ | 121 | $ | -- | $ | 121 | 100 | % | ||||||||
Natural
gas
|
553 | - | 553 | 100 | % | |||||||||||
Total
Operating Revenue
|
674 | - | 674 | 100 | % | |||||||||||
Lease
Operating Expense
|
(99 | ) | (99 | ) | ||||||||||||
Impairment
of Oil and Gas Properties
|
(1,063 | ) | - | (1,063 | ) | 100 | % | |||||||||
Gain
before DD&A
|
(488 | ) | - | (488 | ) | 100 | % | |||||||||
DD&A
|
(713 | ) | - | (713 | ) | 100 | % | |||||||||
Gain
(Loss)
|
$ | (1,201 | ) | $ | - | $ | (1,201 | ) | 100 | % | ||||||
(Amounts
in thousands)
|
||||||||||||||||||||
Payments
due by period
|
||||||||||||||||||||
Less
|
One
to
|
Three
to
|
More
than
|
|||||||||||||||||
than
one
|
Three
|
Five
|
Five
|
|||||||||||||||||
Total
|
Year
|
Years
|
Years
|
Years
|
||||||||||||||||
Long-term
debt obligations
|
1,000 | 200 | 600 | 200 | -- | |||||||||||||||
Other
long-term liabilities
|
147 | -- | -- | 26 | 121 | |||||||||||||||
Totals
|
$ | 1,147 | $ | 200 | $ | 600 | $ | 226 | $ | 121 | ||||||||||
i.
|
That
the Company’s disclosure controls and procedures are designed to ensure
(a) that information required to be disclosed by the Company in the
reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms, and (b) that such information is
accumulated and communicated to the Company’s management, including the
Chief Executive Officer and Chief Financial Officer, as appropriate to
allow timely decisions regarding required disclosure;
and
|
ii.
|
That
the Company’s disclosure controls and procedures are
effective.
|
(a)
|
Exhibits.
|
||
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-15(e) / Rule
15d-15(e)
|
||
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) / Rule
15(e)/15d-15(e)
|
||
32.1
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted
by Section 906 of the Sarbanes-Oxley Act of 2002
|
||
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted
by Section 906 of the Sarbanes-Oxley Act of 2002
|
||
(b)
|
Reports on Form
8-K. The Company filed four reports on Form 8-K for the
quarter ended March 31, 2009. The events reported were as
follows:
|
||
1.
|
The
report filed on January 8, 2009, under Item 8.01 referenced the signing of
an oil & gas agreement.
|
||
2.
|
The
report filed on January 12, 2009, under Item 8.01 referenced the milestone
payment received from Thompson Creek Metals Company
Inc.
|
||
3.
|
The
report filed on January 20, 2009, under Item 8.01 referenced the
retirement of August 2007 construction loan.
|
||
4.
|
The
report filed on February 4, 2009, under Item 8.01 referenced the update of
drilling program with Ridgeland Wyoming Inc.
|
||
5.
|
The
report filed on March 4, 2009, under Item 8.01 referenced U.S. Energy Corp.
engaging SMH Capital Inc. to seek oil and gas
acquisitions.
|
||
6.
|
The
report filed on March 16, 2009, under Item 8.01 referenced the reporting
of 2008 highlights and financial results.
|
||
7.
|
The
report filed on March 19 2009, under Item 8 referenced the amendment to
company bylaws concerning the addition of advance notice provisions for
proposals to be considered by
shareholders.
|
U.S.
ENERGY CORP.
|
|||
(Company)
|
|||
Date:
May 8, 2009
|
By:
|
/s/
Keith G. Larsen
|
|
KEITH
G. LARSEN,
|
|||
Chairman
and CEO
|
|||
Date:
May 8, 2009
|
By:
|
/s/
Robert Scott Lorimer
|
|
ROBERT
SCOTT LORIMER
|
|||
Principal
Financial Officer and
|
|||
Chief
Accounting Officer
|