Gateway Energy(GNRG) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gateway Energy(GNRG)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: CLK who wrote (17)	10/6/1997 6:20:00 PM
From: Bobby Yellin	of 77

Hi- just spoke again with Don Anderson about Gateway. I have helped him to contact people about getting the right classification for the stock. Found out that he was an investment banker who helped found the company. I asked him about bookvalue and replacement for pipelines. He told me that they paid 1/2 million for the pipeline Shipwreck which is three miles offshore from Galveston..they bought the pipeline from Seagull Energy which sold off its pipelines to just focus on reserves and drilling.. He said to replace it would be about $25,000,000..there are two or three other pipelines in the area. It would also take over a year to build another offshore pipeline. So the cost and time factor act as fantastic barriers to further competition. I think he said for online pipelines one could buy them for a 100,000 for replacement value of 250,000. I forgot to ask him what the replacement value of all their pipelines would be. Double check everything I say..Don said they were a bit early because drilling in the Gulf might be a year off and hopefully some companies will come up with elephants..which could add 25 to 40 cents earning per share for Gateway just from this pipeline. For a good while now I have been reading how the Gulf is very active.. .Now with the deregulation of pipelines..their other pipelines should increase in value. More and more utilities will turn to natural gas. I think he said that currently the pipelines are operating at about 20 percent capacity. Another factor is that there will be an increase in natural gas for environmental standards..clean air etc.. Now that they have hired pros in the business and don't have anything overhanging and have an investment bank ready to help them with further acquisitions they will probably now try to attract investors.. any thoughts? I hope somebody can come up with some critical commentary.. bobby

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next