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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Big Dog who started this subject	3/12/2003 6:19:15 PM
From: excardog	Read Replies (1) of 206110

Maybe this guy bought some seismic from PGO you can always dream I guess: <<<Kenneth R. Peak, President, Chief Executive and Financial Officer, Secretary and a Director of Contango Oil and Gas Company, says: Two years ago when gas prices were $10 we drilled everything we had and it takes a while to generate the prospects. Contango did very little drilling in 2002. We hope to do a lot more in 2003 and that is why we risked and went out and spent the $9 million on seismic which is a huge bet and a huge capital outlay on seismic. That is really the focus now, to take that 3D seismic - and by the way we have 3,700 blocks of 3D offshore seismic and 3,700 blocks is a huge swath of the offshore Gulf of Mexico, not the deep water but out to say less than 300 feet. We have got a big chunk of the Gulf of Mexico offshore, Louisiana and the coastal bend of Northern Texas. So we will be looking offshore. We have won in two ways: we have won based on the price appreciation of the forward price deck of natural gas versus the price deck that we bought these reserves on. Also the reserves have produced better than what was assumed in our initial engineering evaluation. So that $26 million was a wonderful investment for us. We spent $6 million retiring about 25% of our common stock. Here in just the last several months I have spent $9 million on 3D seismic to provide prospects for the company in 2003. The competitive advantage we have, if there is one to be found at all, is that we have identified and partnered up with people who by track record have been very successful in the past and therefore by extension we believe will continue to be successful in the future if we get the incentives right and we think we've got the incentives right. >>> BTW 9 million in seismic for what a 27 million market cap company is either outright crazy or brilliant. I vote crazy. Scott

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