Mannon Investor Audit Letter 3.30.2010

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Mannon L Walters 2005A-1 L.P ~ Mannon L Walters 2005A-2 L.P ~ Mannon Oil 2006 L.P **URGENT NOTICE** Dear Mannon Investor: Several groups of Mannon investors from his first three drilling programs as noted above have been sharing issues and ideas regarding the poor performance of these investments. There have been numerous requests for Mannon to provide audited financials which he continually refuses to turn over or provide because of claimed associated costs. The overwhelming consensus seems to be that there are more things going on than meets the eye. We feel it is now “Time for Action” and have been working together to develop a plan to move forward with an audit team who will go in and analyze the books and records on these programs. One of the members on the Mannon Audit Steering Committee has identified a firm that specializes in oil and gas audits. Their approach is to review the original PPM (Private Placement Memorandum) offering and match the activity of the programs to the PPM. The goal of this audit is to determine if the investment monies were used in accordance to the PPM and to look for any evidence of misuse of funds, excessive costs of operations, etc. The results of the audit will provide the investors with the ability to determine what, if any, further action may be necessary. A copy of the proposal is included for your review. We are asking each investor to contribute a minimum of $100 to help fund the cost of the audit. We expect that this nominal amount will get us to the funding required to pursue a forensic audit. We need each investor’s cooperation to make this effort successful. As some investors have

Transcript of Mannon Investor Audit Letter 3.30.2010

Page 1: Mannon Investor Audit Letter 3.30.2010

Mannon L Walters 2005A-1 L.P ~ Mannon L Walters 2005A-2 L.P ~ Mannon Oil 2006 L.P

**URGENT NOTICE**

Dear Mannon Investor:

Several groups of Mannon investors from his first three drilling programs as noted above have been sharing issues and ideas regarding the poor performance of these investments.There have been numerous requests for Mannon to provide audited financials which he continually refuses to turn over or provide because of claimed associated costs. The overwhelming consensus seems to be that there are more things going on than meets the eye.

We feel it is now “Time for Action” and have been working together to develop a plan to move forward with an audit team who will go in and analyze the books and records on these programs.

One of the members on the Mannon Audit Steering Committee has identified a firm that specializes in oil and gas audits. Their approach is to review the original PPM (Private Placement Memorandum) offering and match the activity of the programs to the PPM. The goal of this audit is to determine if the investment monies were used in accordance to the PPM and to look for any evidence of misuse of funds, excessive costs of operations, etc. The results of the audit will provide the investors with the ability to determine what, if any, further action may be necessary. A copy of the proposal is included for your review.

We are asking each investor to contribute a minimum of $100 to help fund the cost of the audit. We expect that this nominal amount will get us to the funding required to pursue a forensic audit. We need each investor’s cooperation to make this effort successful. As some investors have expressed their willingness to contribute more than the minimum amount, any funds that remain after paying for the audit and related costs will be returned to the investors based on the amount contributed. All of the information including whom to make checks payable to and where to send your contribution can be found on the Contribution Form attached/included in the email.

We have established a web site/portal for all investors to be able to review pertinent documents related to the audit including the audit proposal. We will also use it to track contributions and disbursements as required under the audit agreement and provide updates on the audit process. It will also have a chat room component where investors can share thoughts and ideas. Additionally, if anyone has any documentation or other valuable information, you can send it to any of the committee members and they will either post it for access by all investors or put it into a secured area for specific purposes. You will need to register at www.Trunity.net. Once you register, you can type in “Mannon Oil” in the upper right hand search bar and that will take you to the Mannon audit site. We are working on the layout and design so please bear with us as it evolves.

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What we need YOU to do is help spread this material to as many Mannon investors you know. As more people work together on this effort, it will drive down the cost per person of pursuing adequate information and taking any requisite actions. Once the minimum amount is received to perform the first phase of the audit, Mannon will be notified of the audit and the audit team will mobilize and descend upon Mannon’s office in Evansville, Indiana.

Should you have any questions, you can contact any of the Steering Committee members listed below. Thank you for your support.

Joshua Ungerecht Jim [email protected] [email protected](626) 564-1031 ext. 112 213-505-4454

Susana K. Dryden John [email protected] [email protected](626) 564-1031 ext. 112 (562) 342-3021