Breezer Ventures Inc (PINK:BRZV) Extracting Oil with Words

Here we take a look at yet another company that is talking big about getting in the oil and natural gas business. Again we come accross them not following their actual achievments, but rather looking at optimistic press releases and pump emails.

It seems that some people, however, mistake words for actions and have fallen prey in the whole scheme investing their hard earned money. The pump emails have been coming at a rate of 3-4 per day since April 2, while there has only been one press release posted yesterday. It’s no wonder that the press releases aren’t as much as the pump emails, because there is really very little that BRZV has to announce.

Their last quarterly report simply doesn’t seem to cover for the optimistic statements they are so boldly making. Let’s take a look at the numbers of main interest that we got from the quarterly report covering the period ended December 31, 2012.

• cash: $0
• current assets: $72 thousand
• current liabilities: $214 thousand
• revenue since inception: $0
• net loss since inception: $219 thousand

And looking at these financials it is really hard to imagine how the things that BRZV speaks of in yesterday’s press release are going to happen. There is an interesting quote that I must add, namely: “Building upon a successful 2012, Breezer is poised to commence a busy 2013 year with more drilling and expectations of steady oil production.”

I can’t really understand what they mean by successful when all they managed to do is accumulate more financial debt. With the current state of the company and the cost of “$50,000” to “$75,000” which is needed for each well to be brought to production I just don’t see how they will manage to acquire the capital they need to get the ball rolling.

Oh, and let’s not forget that they already have a net loss of $219 thousand since inception and current liabilities that total a staggering $214 thousand, which means that if they even start producing oil there is going to be a lot of time working only to cover that debt.

Given all that information we can conclude that BRZV is a risky investment choice. Remember, we advise to always do your due diligence and consider all the risk factors before you rush into buying a certain stock.