coastal caribbean (cco@) Message Board

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Gold/Mining/Energy : coastal caribbean (cco@)

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To: jbIII who wrote (696)	2/9/1999 11:25:00 AM
From: Henry Volquardsen	Read Replies (3) of 4686

Hi John, Coastal can be a tough symbol to track down. The main exchange it trades on is Boston and apparently a lot of quote providers don't do a good job of picking it up. It also trades on the Pacific and Midwest exchanges. So all in all a tough one to make sure you our getting all the news and volume. I track it on Bloomberg where it comes up under CCO and shows the volumes from all exchanges. COCBF is also a symbol for it from the OTC:BB but it doesn't really trade there so you don't get good info. The story on CCO is much tamer in many ways than our other shared fantasy. There doesn't seem to be much question that there is oil under their leases. There was an article in yesterday's Oil & Gas Journal that provided some interesting info Message 7714026 CCO doesn't have the mysterious black boxes and all the other wierd trappings of you know who. The story in it's essence is pretty simple. Coastal has extensive drilling leases in the Gulf waters off the coast of Florida. Florida refuses to grant them drilling permits. The company has pursued litigation to get the permits issued. If the state wins CCO is worth next to nothing. If CCO wins and gets to the point of drilling and finds the huge field implied by the article referenced above then CCO would explode upward as if it were CCO.com ;) My own feeling is that the state will never allow the drilling. So the real question is what hapens if CCO wins in court. If the state then siezes the leases then this becomes a 'takings' issue and you would eventually see a court ordered settlement that could indeed be in triple digit. I believe, however, that the state releases the risk of this. If the state feels there is a serious risk that they lose the case they will try will negotiate a settlement to buy back the leases before it gets to a court ordered settlement. I beleive a negotiated settlement would most likely be in the low double digits. From my reading of the court case and from what I have heard from others CCO has a pretty good case. So there is a chance, a small chance I believe, that CCO will lose and be a write off. There is a pretty good chance of an eventual negotiated sttlement in the low double digit range but the timing on this is indeterminate. And there is an outside though small chance of very large gains.

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