Teton Petroleum (TTPT) -- Russian Oil Message Board

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Gold/Mining/Energy : Teton Petroleum (TTPT) -- Russian Oil

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To: Sleepman who wrote (53)	10/26/2002 2:44:57 PM
From: Ed Ajootian	Read Replies (1) of 115

Dan, I believe our day in the sun is right around the corner. This turkey already has well in excess of 40 mill. shares out, as we speak. I am guessing they have north of 47 million shares out to be more precise. We will find out for sure when they issue their 3Q 10QSB, due out in 3 weeks. Per the press releases of 8/20 and 9/3, the company issued convertible debentures and then immediately converted them into stock. Per the 2Q 10QSB these debentures were convertible at $.25/share and the holders got a 10% bonus if converted within one year of issuance. Do the math and you get to my 47 million shares. The market has already baked these new shares into the equation, IMO. That is why the stock tanked from the $.40 mark, which is where it closed on 8/20 (the day the 2Q 10QSB came out), to the $.31 mark on 9/16 (i.e., while the above press releases were coming out but before the next hype campaign got started and before the news of increased production that came out on 9/23). As noted in these press releases, the stock issued in this financing is not free-trading. Therefore I believe the market is not that concerned with the increase to the number of shares right now. Even with 47 mm shares out the market cap of this company is still a paltry $18 mm, which is pricing their proved reserves at well under $.50/bbl. This is an absurd valuation since the value of a barrel of oil in the ground in Russia is well established to be about 3 times this figure, and it also ignores the 40+ mm bbls. of probable reserves that TTPT has booked. For folks that may be concerned about future dilution from warrants, Teton finally made a filing on Thursday 10/24 saying that it was cancelling its exchange offer for its warrants. This means that they are convertible under their original terms. This removes a big overhang on the stock price because the exchange offer would have traded all the original warrants for new ones with a $.30 stock price. I believe the smart money started to move into the stock on Friday. A lot of big money was no doubt waiting on the sidelines for this filing so as to be clear as to what the capital structure of the company is. This money will start to flow into the stock over the next several weeks. Buckle your seatbelts, boys & girls! (Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)

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