Gresham Resources GRC.V Message Board

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Gold/Mining/Energy : Gresham Resources GRC.V

GRC 49.13

-0.5%

Dec 29 3:59 PM EST

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To: Pat Hebert who wrote (18)	10/5/1997 11:46:00 PM
From: Ed Ajootian	of 33

Pat, If they do stick with their earlier plans and start paying dividends, it will be an interesting experiment. I've never seen an O&G microcap do this before --- and I've looked at a fair number of these babies. The big problem with paying dividends is that this business is so goddam capital intensive that you probably will end up in effect borrowing money to pay out the dividends. And if you borrow too much, then you are putting the whole company at risk if you hit a run of bad luck and come up dry for awhile. I think it is very possible that you will never see $1 (or even C$1) of dividends from this company, yet 6 months from now you will have a very large smile on your face when you think of your Gresham investment! I guess they are still having problems getting rigs up there in the hinterlands. Isn't this frustrating -- first we have to wait eons for them to whack the hell out of the seismic data and develop the prospect. Then when they _finally are ready to drill there's nothing to drill with!

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