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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: diana g who wrote (74286)9/22/2000 5:47:08 PM
From: jim_p  Read Replies (3) of 95453
 
diana g,

You Big Dog are probably right on VRC, that was my only guess, but it is still a great but today. L.E. Simmons will not do a bad deal.

Regarding SMOP:

1. SMOP has engaged Petrie Parkman to sell the company.

2. They have 81.9 Bcfe in reserves as of 6/30/00 as prepared by Netherland Sewell (very conservative SEC 10% $155.5MM).

3. They just came out of CH 11 and did a 5 for 1 reverse stock split and issued 10MM new shares to convert the bonds into common stock. The bank debt is paid down to $17.6MM, and the company is cash flowing over $1.4MM per month.

4. The new board is controlled by the old bond holders with a cost basis of less than $1.00 per new share.

5. The stock ran to $4.25 per share and then 10MM newly registered shares hit the market two weeks ago and drove it back down to $2.75.

6. The new shares have either a very low cost basis, or have been sitting a huge loss for several years.

7. At $4.21 per share the old bond holders receive 100% of the bond par value plus interest.

8. The old shareholders have a strong incentive to sell the company for more than $4.21 per share due to over 3MM warrants issued at $4.21 per share.

In short, this is as close as you can get to printing money legally. I would think it will sell for between $5.00 and $8.00 per share is a tax free stock exchange.

You really didn't think I would buy 90,000 shares of a mico cap without a plan did you?

Jim
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