Silicon Investor (SI) -- The First Internet Community

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.

Microcap & Penny Stocks : Benz Energy (BZG.V) -- Ignore unavailable to you. Want to Upgrade?

To: Casey who wrote (206)	8/3/1999 10:23:00 PM
From: Ed Ajootian	Respond to of 272

Casey, Great news --- this means they have not gone bankrupt yet. The earlier letter of intent to sell down this interest expired on Saturday so the fact that a company has signed another LOI since then indicates that Benz is still alive and kicking. Wonder if this buyer is the same as the previous one. Here's an excerpt from the SEC filing: On July 7, 1999, we executed a letter of intent with Prime Natural Resources, Inc. for the sale of 37.5% of our interest in the Old Ocean Prospect. The consummation of the transaction is subject to the negotiation and execution of a definitive purchase and sale agreement. Under the letter of intent, Prime has agreed to pay us $3,500,000 at closing and $1,978,098 on or before September 15 in consideration of the interest to be purchased. We will reserve an 25 <PAGE> overriding royalty interest in all leases and contractual rights to volumes of production and all similar interests, whether we currently own them or later acquire them, within the established area of mutual interest for the project. Prime has an option for a six month period to purchase an additional 12.5% of our interest in the Old Ocean Prospect, subject to the overriding royalty reservation set forth above, at a purchase price of $1,826,033, plus $214,276 at the end of the six month period. We have agreed to enter into an agreement under which Prime or one of its affiliates will have the right to market the 3-D seismic geophysical data covering the Old Ocean Prospect for a ten year period following a 120 day exclusivity period that we have retained. Prime will be entitled to our share of the proceeds from the sale of the data, which share may be no less than 66 2/3%, subject to applicable sales commissions. In addition, Prime or its affiliate must grant us a license to other geophysical data outside the Old Ocean Prospect owned by Prime or its affiliate. We may select the outside data of our choice covering up to 102 square miles. The letter of intent will expire if the transactions contemplated thereby are not closed on or before July 31, 1999. ******************************************************************** Has anyone heard of Prime Natural Resources? They don't appear to be a public company, but obviously must be pretty big to buy into this play with that kind of dough. It makes sense that the bankers/finance companies that Benz is talking to would insist that they line up this sell-down of the Old Ocean interest before committing to the financing. Maybe they also want the Fortenberry test results publicly announced first, too. Hopefully that is not far away.

To: Casey who wrote (206)	8/21/1999 7:00:00 PM
From: Ed Ajootian	Respond to of 272

Natural gas still on rise as storm puts rigs at risk Copyright 1999 Houston Chronicle News Services August 20, 1999, 08:12 p.m. NEW YORK -- Natural gas futures rose sharply for the fourth day in a row Friday on the New York Mercantile Exchange as Tropical Storm Bret threatened to shut down Gulf Coast production rigs. Natural gas for September delivery rose 4 cents to $2.938 per thousand cubic feet -- the highest closing price since November 1997 -- amid predictions from the U.S. National Hurricane Center that the storm would strengthen into a hurricane within 24 hours. Prices have risen 8.8 percent since Monday. Chances are low that Bret will veer as far north as Texas before moving inland, yet traders are buying futures anyway to protect against any possible damage to the heart of U.S. natural gas production along the Gulf Coast. "People get all worked up when they hear the word `storm' " said Chris Schachte, a trader at GSC Energy Corp. in Atlanta. "We've heard all the hype about what a huge hurricane season this is supposed to be, so it's natural that people would get a little jittery." Natural gas supplies in storage have fallen 5.6 percent below levels of a year ago after blistering heat forced utilities to power up plants to meet consumer demand from air conditioners and fans running overtime. It now must be replaced ahead of the busy winter heating season, and the threat of production outages for offshore platforms is causing concern that a colder-than-normal fall will bring shortages. About half of U.S. natural gas is produced by offshore and inland rigs in Texas and Louisiana. Offshore rigs are often shut down and evacuated when tropical storms or hurricanes approach. The storm could threaten Mexico's oil shipping ports on the Gulf Coast, including Dos Bocas and Cayo Arcas, though the ports still are open. Natural gas prices are up 25 percent since July 1, which is unusual for the summer, as prices fell in three of the previous four years. A front-month natural gas contract has never traded above $3 during August. Because prices are so much higher than they are historically, some traders had been lulled into selling futures contracts expecting the rally to end, and now must buy them back to cancel the bad bets. "In the summertime, historically, gas is under $2," said Chester Irvin, a trader at ABN Amro in New York. "Everyone kept thinking that it's gotta back off. Then, it doesn't. So, you gotta buy it back. A lot of people were like that." Gas may not get cheaper in the future, either. The average price of futures contracts for each of the next 12 months, known as strips, reached $2.82 per thousand cubic feet -- the highest price since the strips were created almost 9 1/2 years ago. The high prices could finally spur some selling by producers, traders said. "Hedgers have to be out of their minds if they don't sell a good percentage of their production now," said Irvin. Other energy futures finished mostly lower amid profit-taking after the spot crude contract, representing cash prices, jumped above $22 a barrel. October crude fell 12 cents to $21.65 a barrel; September heating oil fell 0.08 cent to 57.42 cents a gallon; September unleaded gasoline fell 0.23 cent to 65.97 cents a gallon. In London, North Sea Brent Blend crude oil for delivery in October rose 9 cents to $20.99 a barrel on the International Petroleum Exchange. Bloomberg News and the Associated Press contributed to this report.