Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Ray Dopkins who wrote (44498)	5/11/1999 4:13:00 PM
From: tdl4138	Read Replies (1) of 95453

<CRZO> From going over the latest SEC raw filing, 10k, the preferred stock you are inquiring about is a private placement with Enron Corp. It is set up so that the "dividend" can be either cash, or the issuance of more preferred stock. At the time of the filing, CRZO, if I read correctly, had issued approximately 27,000 more preferred shares in lieu of paying cash, which could prove out to be a rather prudent mechanism for capital preservation. I see this as a potentially dangerous game to be playing, but one has to remember we are dealing with a micro-cap oil company. It's the nature of the beast, so to say. All other assets are pledged as collateral for a note with Compass Bank. Assuming the trend remains strong for crude and ng...it should work out just fine. If crude does tank again....the financing set-up really won't matter. Just my thoughts Dave

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