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Gold/Mining/Energy : Teton Petroleum (TTPT) -- Russian Oil
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To: baystock who wrote (87)5/7/2003 11:27:08 PM
From: Ed Ajootian  Read Replies (1) of 115
 
Always tough to quantify this sort of thing but let me take a stab at it.

Teton has drilled out about 15% of its oil field so far and is producing 1,750 bopd. So in the next few years when they get to the point where they are close to drilling it all out the market should see that they are a lock to get to 10,500 bopd net, or 42,000 bopd gross for the whole field.

They own a 35% interest in the company that owns the field, called Goloil. Marathon Oil just offered $275 M to buy a privately held US-based Russian oil company called RMOC, and they produce about 15,000 bopd. RMOC also has several other undeveloped fields under license but Teton will have built up a similar backlog in another year or two.

Extrapolating the value of RMOC to Goloil you get a value of Teton in a coupla years of $20/share fully diluted.

Companies are going bonkers wanting to get into the Russian action because the government there just approved plans to build a massive pipeline from Siberia to China, and in 3-4 years or so when that gets built there is gonna be a dramatic increase to the amount of oil that can be exported from Siberia. Companies wanna establish a beachhold in Russia soon, so they can then grow their Russian production methodically over the next 3 years, so they will be producing full bore once the new pipeline kicks on.

So that means a year or two from now Teton is gonna be at the right place at the right time.
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