United States Securities and Exchange Commission

   Litigation Release No. 16402/ January 7, 2000

   , Civil Action No. SA CV 00-17 AHS (EEX) (USDC CD Cal.)

   The Commission announced the filing of a civil action charging five
   entities and five individuals with securities fraud for engaging in
   deceitful practices to raise $8 million from investors nationwide for
   oil and gas drilling programs through "cold calls" made though
   telemarketing "boiler rooms". The Commission's complaint alleges that
   the named defendants misrepresented several material facts to
   investors, including the amount of sales commissions paid to the
   defendants and to salespeople under their control, the risks and
   potential profits of the programs, the results of prior programs sold
   by the defendants, and tax benefits purportedly available to investors
   in the programs. According to the complaint, a majority of the
   investors' funds were used to pay sales commission and the drilling
   programs never produced oil in quantities sufficient to make promised
   royalty payments to investors.

   Named as defendants in the action are Petro Resources Corp. of
   Scottsdale, Arizona, its president Samuel McClintock, Austral Oil &
   Exploration Corp. of Sulphur, Louisiana, and its president Myron J.
   Palermo. Also named are three boiler rooms, ITS Consulting, Inc.,
   Integrity Financial Group and Tritech Investment Group, Ltd., as well
   as three officers or control persons of ITS Consulting Alan B.
   Baiocchi, David E. Morris and James Silver, of Laguna Beach,
   California.

   According to the complaint, from January 1996 through July 1997, the
   defendants fraudulently raised at least $8 million from over 400
   investors nationwide for purported oil and gas drilling programs in
   Texas and Oklahoma. The complaint charges Petro Resources, McClintock,
   Austral, and Palermo with violations of Sections 5(a), 5(c) and 17(a)
   of the Securities Act of 1933 and Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder. ITS Consulting,
   Baiocchi, Integrity Financial Group, Ltd. and Tritech Investment
   Group, Ltd. are charged with violations of Sections 5(a), 5(c) and
   17(a) of the Securities Act and Sections 10(b) and 15(a) of the
   Exchange Act and Rule 10b-5 thereunder. Morris and Silver are charged
   with violations of Section 17(a) of the Securities Act and Sections
   10(b) and 15(a) of the Exchange Act and Rule 10b-5. The complaint
   seeks injunctive relief, an accounting and disgorgement and the
   imposition of civil penalties.
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Modified 01/10/2000