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Gold/Mining/Energy : Ultra Petroleum (UPL) -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (4290)	8/24/1999 4:51:00 PM
From: Hickory	Respond to of 4851

Yes, Little Joe. Gotta run to a meeting but will give details tomorrow. Best to ya, Hickory

To: Little Joe who wrote (4290)	8/25/1999 11:17:00 AM
From: Brian Diggle	Respond to of 4851

Do you know the specifics of the buyout of Colt by Key West This was "an all stock buyout". I got 1120 shares of KWE for my 2000 shares of Colt. I'm still sitting on a paper loss. If you own any shares of Colt, you need a new broker, since they should have informed you. JMO Brian Diggle

To: Little Joe who wrote (4290)	8/25/1999 2:05:00 PM
From: Hickory	Read Replies (1) \| Respond to of 4851

Little Joe, In December, 1998, Key West gave Colt shareholders .606 of a Key West share for each Colt share or l share of Key West for every 1.65 shares of Colt. Colt had $8.3 million cash. Key West valued Colt's Green River holdings (including Colt's 37.5% working interest in the Lizardhead 11-8 well, which had had an initial flow rate into pipeline of 5.1 million cu ft/day, and the North Lizardhead prospect acreage) at $435,000 and its Canadian oil and gas properties at $329,000. Offsetting its holdings was $581,000 of accounts payable and accrued liabilities, leaving a net value of its oil and gas assets of $183,000. (ALL currency figures in this post are CANADIAN dollars) 12,783,124 million Key West shares were issued to pay for 21.5 million Colt shares. Thus, each Key West share issued purchased $0.674 worth of Colt assets. Since its incorporation in 1997, Key West shares have sold for a low of $0.65 and were selling at $0.70-0.73 just prior to the effective date of the buyout. In May, 1999, Key West issued 7.07 million shares to purchase privately-held Sequoia (assets of $4.1 M cash and oil and gas properties valued at $1.1 M). In this case, too, Key West acquired approximately $0.68 worth of assets for each share issued. Key West then purchased (for $10 M) an average 70% interest in 22,900 acres near Carbon in central Alberta (representing current daily production of 520 boe (barrels of oil equivalent), proven reserves of 1.5 million boe and a pipeline and 2 gas plants with excess capacity. Key West believes that workovers and new wells can substantially augment both proven reserves and daily production on these 22,900 acres. Key West's top mgmt. is the same that capitalized Jordan Petroleum at $0.10/share in 1986 and sold it in 1997 at $9.80/share. In May, 1998, Key West sold 2,884,615 shares to mgmt. and directors at $0.52 per share and 96,155 shares at $0.76/sh. In August, 1998, the co. received $0.90 per share for 2,376,427 shares (of which amt. $1,497,152 must be spent on exploration and drilling before Dec. 31, 1999). As of Dec. 31, 1998, officer and director share purchase options totaled 1,630,000, most of which are exercisable at $0.65----only 180,000 at $1.00. As of Dec. 31, 1998, 7,525,596 warrants were outstanding. Nearly 3 million of these are exercisable at $1.01 on or before Sept. 22 and 25, 1999. The remainder are exercisable at $2.69 and $2.55 on or before Nov. 7, 1999. Key West shares currently are priced at $1.15, so that one former Colt share would now have an equivalent market value of $0.70. I paid an average of $0.76 for my Colt shares, so I am still underwater.