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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Stephen L. Smith who wrote (48606)	7/29/1999 10:40:00 PM
From: JGreg	Respond to of 95453

I guess people think PGEI will be too slow bringing some of their wells to production, as compared to other producers, but I would think this rising tide with NG should be lifting most boats that have reserves. ??????

To: Stephen L. Smith who wrote (48606)	7/30/1999 1:46:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

PGEI .... nothing positive there imho... their positive earnings were from equip sales ! ... not from the drillbit ! IE: <<HUTCHINSON, Kan., July 29 /PRNewswire/ -- Petroglyph Energy, Inc. (Nasdaq: PGEI - news) today announced net income of $244,000 on revenues of $970,000 for the quarter ended June 30, 1999 compared to a net loss of $150,000 on revenues of $1,025,000 for the quarter ended June 30, 1998. Operating cash flow (net income plus depreciation, depletion and amortization and deferred taxes) increased to $776,000, or $0.14 per share, for the quarter ended June 30, 1999, from $194,000, or $0.04 per share, for the quarter ended June 30, 1998. * The increase in net income and operating cash flow was primarily due to gains on sales of the Company's Utah and Texas compression assets and the completion of scheduled cost reductions.* During the second quarter of 1999, the Company spent $400,000 on the development of its oil and gas properties and ended the quarter with debt of $8.0 million under its revolving credit facility and $1.8 million in working capital. During the second quarter of 1999, the Company successfully completed the sale of its Utah and Texas compression assets for net proceeds of $1,475,000, resulting in gains of approximately $877,000.>> ...take the $877,000 net gain from this one time equipment sale from the $244,000 and they would have had a tragic $633,000 LOSS ! Their cap ex spending is not enough to do anything substantial nearterm here...this is a slow, slow, slowly unfolding ''potentially commercial'' development playout in the Raton Basin: << During the second quarter of 1999, the Company continued to remove water at a rate of approximately 30,000 Bbls per day from its 17 well pilot area. The coalbed methane pilot project continues to progress according to engineering expectations. Although not at commercial levels, a number of wells are responding to the de-watering process by producing increasing levels of gas. Management believes that produced quantities of gas will be sufficient to supply the Company's field level needs in the near future, with some quantity of gas becoming available for sale during the fourth quarter of 1999. Additionally, the Company has received a surface discharge permit for its produced water from the State of Colorado and intends to significantly increase the water withdrawal rate at the end of August when the permit becomes effective.>> There is VERY substantial upside here with PGEI - but, the company has somewhat admirably (from a longterm view) chosen to stay disciplined in living within cash flow constraints and is developing the waterflood project very slowly. They could take on a partner for lesser working interest etc. - but, give them credit for not doing so... Lots of ''ultimate'' upside potentially here - just a slow movin mollasses train getting there... just too many ''other'' stocks with more things happening NOW ... If PGEI breaks under $2 - this becomes a buy it cheap and throw it in the drawer and check back in 2 years kind of stock...