first star energy FST on the ASE Message Board

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Gold/Mining/Energy : first star energy FST on the ASE

FST 10.18

+0.3%

Aug 25 5:00 PM EST

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To: Diamond Daze who wrote (568)	7/12/1998 12:52:00 PM
From: RIK	of 754

Chris , IMO the possibility of this stock going to $10 went down the drain when the Leduc zone was `dusted'. Apparently a deeper , LESS significant zone was encountered in the wellbore. The question is ....HOW SIGNIFICANT? A big blast of gas on production test can be quite meaningless ....all it really tells us is that there is `at least some' reservoir quality rock that is gas bearing. In a worst case scenario we could be dealing with a limited reservoir ( i.e. a zone that will not be exploited by virtue of its small areal extent and / or uncommercial reserves ). The Apache group have acquired important pressure data which will be integrated with a NEW geological / geophysical interpretation. That brings me to answering your next question .. "when will it run again". The next important event is whether or not Apache elect to drill the first option well . They have all the technical information and they pay the brunt of the costs on these deep expensive wells. Since MOST shareholders have been `tight-holed' , we will have to depend on Apache's direction. If they elect NOT to exercise this option , then that would be very detrimental to share prices of the juniors involved. If the terms of the original agreement are changed , I would also view this in a very negative way. The Strachan juniors will run again if Apache elects to drill an option well per the original agreement !!!

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