V.EGG - Ebony Gold & Gas Message Board

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Gold/Mining/Energy : V.EGG - Ebony Gold & Gas

EGG 5.310

-5.9%

Feb 6 9:30 AM EST

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To: Paul Kramer who wrote (517)	5/29/1997 12:35:00 AM
From: eddie benson	of 1088

Hello,I would just like to repost message 517 for all the newcomers that are new to this company. To: Terry Newman From: Paul Kramer Apr 26 1997 12:08AM EST Reply #517 of 612 Hello to all.................. Subject: Ebony Gold & Gas (EGG-VSE) Shares issued: Approx. 6.4 Million April 25 Close: $0.77 Cdn 52 Week hi/low: $1.89/$0.52 Cdn Investor Relations: Phone (604) 683-7077 or 1-800 770-8366 Website (lots of information): ebonygold.com Most readers may be familiar with this oil and gas company which rallied May'96 on expectations of producing at least one significant oil strike on their properties in Tennessee. After only achieving minor exploration success the price of the shares fell back and the stock has been a sleeper for the past ten months, trading in a relatively narrow range between $0.60 to $0.90. During this hiatus Ebony has been busily reworking many of the capped wells which lay idle on the company's leases and making repairs or improvements to company's 49 mile natural gas pipeline. Ebony also acquired additional leases on prospects which either have large iodine anomalies (associated with presence of hydrocarbons) or contain neglected producing or capped wells from which production could be greatly enhanced by treatment. There's no doubt that the fundamentals of this company changed during the last ten months as is evidenced in today's news release in which Ebony announced that one of the reworked wells was producing the equivalent of 226 barrels of oil per day. The significance of this well for a company with 6.4 million shares issued should not be under estimated. The company normally has 100% well ownership with a 12.5 % royalty to the landowner for any production taken from the lease. Many wells have now been placed into oil, gas, or oil and gas production. A very inefficient gas compressor has been replaced by a new automated system which has dramatically improved production. You could say the Ebony has ironed out many of the wrinkles and passed a critical stage of development. This footing sets the stage for the next cycle of exploration which is due to commence in May. Here's are some reasons why I have been more buying shares of Ebony this month: a) Looking at the company's chart the price is at or near a well established support level. b) Anyone who wanted out of this stock has had ample time to do so. c) Insiders have been buying into several private placements. e) Continually improving fundamentals f) Recent purchase of an drilling rig (to be completed on or before May 31). g) Recent hiring of a PR firm. This stock has been in an accumulation phase for some time and it is still very early in the cycle which means that the downside from here is small. Looking down the road from here I expect to see another positive news release with the announcement of more production from wells that are receiving treatment and some excellent news on total gas production. One more private placement will likely take place before the next drilling program. Last year investors were left with EGG on their face but, due to the changed conditions mentioned above and with more drilling coming up, its unlikely that share price will settle back to these levels. Please do your own due diligence and call the company to verify any of the above commentary. Happy Investing! Paul Kramer

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