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

To: Saracen who wrote (1226)	11/13/1999 9:15:00 AM
From: virginijus poshkus	Read Replies (1) \| Respond to of 1261

saracen, did the ezuz deal go thru yet? any other news to account for the recent activity. vargas

To: Saracen who wrote (1226)	11/15/1999 12:48:00 AM
From: Dave K	Read Replies (1) \| Respond to of 1261

This is what it takes to get a worthwhile field in Iran. Tracer has about $100k cash in the bank + maybe $700k if Tradewinds takes all options under Indo asset sale based on an extreme optimisic outlook. Tell us how they will be a player ? (Bloomberg) Energy News Mon, 15 Nov 1999, 12:23am EST Shell Agrees to Spend $800 Million Developing Two Iranian Oil Fields Shell Agrees to Spend $800 Million on Iran Oil Fields (Update2)(Adds State Department comment in the 5th paragraph.) Tehran, Nov. 14 (Bloomberg) -- Royal Dutch/Shell Group, the world's second-largest publicly traded oil company, agreed to spend $800 million to develop two Iranian oil fields. The agreement between the company's Shell Exploration NV unit and the state-owned National Iranian Oil Co. calls for Shell to act as contractor on the country's Soroush and Nowruz oil fields, which were closed during the 1980-88 Iran-Iraq war. ``The integrated project we offered was attractive to the National Iranian Oil Company because of the cost savings,' said Edi Cartier, Royal Dutch/Shell's country chairman in Iran. ``We were successful because of our project management expertise and financial strength,' he said. Shell's decision to proceed is the biggest blow yet to a U.S. law that prohibits investments of more than $40 million a year in Iran. The U.S. has charged Iran with sponsoring terrorism, seeking nuclear weapons and undermining the peace process in Israel, allegations that Iran denies. ``We're going to be looking into it,' a U.S. State Department spokeswoman said. ``There will be a fact-finding mission to see if sanctions will apply, but that could take months.' `Buyback' Contract The Islamic Republic offered Shell a ``buyback' contract under which the foreign company will be paid for its work in oil and gas over a limited period of time. The terms of the contract are meant to comply with Iran's constitution, which forbids foreign ownership of energy reserves. The two fields are believed to have more than 1 billion barrels of heavy crude oil. When full production is achieved in 2003, the fields will produce about 190,000 barrels per day, Shell said. The offshore fields, which were first discovered in the early 1960s, are located in shallow waters some 80 kilometers west of the Kharg Island. Early production from Soroush is expected to start in late 2001. The August 1996 Iran-Libya sanctions act, which calls for a coordinated fight against countries that sponsor terrorism, seeks to penalize foreign companies that invest more than $40 million in oil and gas projects in Iran. Foreign companies that violate this law could face sanctions that include additional tariffs or prohibitions on exporting their goods to the U.S. Waive Sanctions Shell is ``prepared to proceed' under the threat of U.S. sanctions, Cartier said, and added, that Shell expects the U.S. government to waive sanctions against us as it did against the other international oil companies that have signed contracts with the Islamic Republic. The European Union, for its part, sees the U.S. law as ``extra-territorial' and a violation of World Trade Organization guidelines. The international oil companies, except those from the U.S., are taking an educated gamble that the U.S. government won't follow through and level sanctions against them. To date, Iran has attracted mainly European oil companies. In 1997 Total Fina SA and its partners agreed to spend $2 billion to develop Iran's South Pars gas field. Elf Aquitaine SA and Eni SpA agreed earlier this year to spend $1 billion developing Iran's offshore Dorood oil field. Iran, which holds the world's second-largest natural gas and fifth-largest oil reserves, plans to double its current oil production capacity of about 3.9 million barrels a day over the next 20 years. It's currently examining proposals for more than 40 projects under plans that repay investors with oil and gas from the field being developed.