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Microcap & Penny Stocks : Tri-Valley Corp. (OTC BB: TRIL) -- Ignore unavailable to you. Want to Upgrade?

To: George Dysert who wrote (3838)	6/23/1999 11:09:00 AM
From: Taff	Read Replies (1) \| Respond to of 4821

George, I think your proposed pricing schedule is a tad fanciful or I a tad pessimistic, that's optimist with experience. Anyway for what it's worth here is my speculation on where pricing will be a year from today 6 months at least. Consider the total field may have anywhere between 1 to 14 trillion feet of gas. Speculation at present within a matter of a year or two there will be 20 plus wells drilled into the field with more coming every year. Consider the 1 to 14 trillion feet is over the total life of the field 20 to 30 years or even longer, and as the pressure drops other enhanced recovery procedures are required Consider royalty burdens paid to Federal, State and Chevron (Chevron did own a very large portion of all deep reserves). Chevron could get 25% and other royalties could receive 15 to 25%. Consider a normal high pressure well may flow 20 to 50 million feet of gas per day at best depending on the frac, the tubing size, up stream facility sizing, produced water, produced sand. (approx 300 days per year) Consider just because the group will have the gas there is no guarantee they can sell it. The well(s) maybe shut-in for considerable periods of time. Consider what gas is worth in the ground maybe a buck (50 cents USD) this year, maybe 25 cents next year Consider where the JV's are going to get the money to drill this well 10 mill (add 10 to 15% for contingence) I am positive none of the JV partners have more than a couple of nickels to rub together jointly. I see the issuance of a 100 to 120 million shares (combined) to finance this project. Based on an average share price of all the JV partners of 20 cents and warrants for 50 to 100 percent. I feel after discovery for every 1% owned by a partner the share value would be 50 cents or a 10% position would give you a 5 dollar stock at most without current stock dilution. If stock is diluted divide by two Later Taff