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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (4317)	10/3/1999 6:31:00 PM
From: Mighty_Mezz	Respond to of 7056

Could they be making this all up? Hmmm Could this affect the value of the Securely Collateralized April Money? :-) ...Mezz -

To: Q. who wrote (4317)	10/4/1999 8:04:00 AM
From: ColleenB	Respond to of 7056

Well, now I've identified three more funny phrases, all from the May 13 news release by LFT: prime oil and gas fields Geological Reports and Reserve Analysis Geological Engineering Report Here's where they appear in context, in the news release: These prime oil and gas fields in Central Texas have proven reserves as shown in several Geological Reports and Reserve Analysis, giving a complete Geological Engineering Report. Technically, these are not bizarre, funny terms.... in the context, prime oil and gas fields simply means that this is a "known" production field. (or would be my guess as to what the author meant.) also...Geological Reports and Reserve Analysis, again, just a guess but I would think the author should have used the word RESERVOIR in place of Reserve. And yes, geologists construct reports/maps as to what their best guess is for the underlying strata. And hopefully this is based on several known features of the surrounding area as well as projections. and lastly....Geological Engineering Report this would be considered redundant with the above description except in the case of a known producing field. In this case, the engineer can provide documentation of the production rates by the surrounding wells. If this is the case, the engineer needs to provide this information to the geologist so that he can in turn incorporate this information into his mapping and contours and see if his premise of the landscape matches the production of the area. Which again, would suggest that the reserve word should be replace with reservoir.

To: Q. who wrote (4317)	10/5/1999 12:27:00 PM
From: Traveler	Read Replies (2) \| Respond to of 7056

Here is a possible scenario (I worked in the oil and gas industry from 1974 to 1980 as a CPA auditing the firms and from 1980 to 1989 in varying industry positions, including CFO: LFT owns the production rights (i.e. working interests in the leases, a royalty interest, or some other legal ownership interest) in the wells which have proven producing reserves assigned. Back in the 70's, there was a form of "loan" known as "production payment". It was a loan guaranteed by a certain quantity of oil/gas. A bank, group would loan money to an oil company and the repayment of the loan was from the production from the wells (ergo, production payment). The lender would be repaid from (pick a number) 80% of the oil/gas produced from the well. In exchange for the LCE's and stock, LFT may have given HITT an IOU, in the form of an above production payment. This would be different that putting up the leases, etc., as collateral, but the production payment would be a valid claim, subject to a UCC filing as a lien on the production. If proper due diligence is not done, and the production is not sufficient to cover the loan, the loan holder (as in HITT) is S-O-L. Similarly, if there is a problem with the LFT ownership interest in the wells or production rights, HITT could be S-O-L. Lots of interesting possibilities here.