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Gold/Mining/Energy : Oilexco Inc. -- Ignore unavailable to you. Want to Upgrade?

To: bcjt who wrote (155)	11/26/1999 3:47:00 PM
From: Taff	Read Replies (2) \| Respond to of 551

Moved this one to the top from the Lady >>> Oilexco + Talisman + Iraq = THE most intriguing story stock I have come across in many years. Should all the pieces come together, a 5 bagger would be a conservative estimate. Oilexco is close to closing a $42 million financing that will take them a step closer to controlling 2 and possibly 3 oil fields in Iraq. Ask yourself this: 1.) How does Oilexco, a tiny oil & gas company on the Alberta exchange, secure UN approval for lifting contracts with Iraq? 2.) Why would the Iraqi oil ministry select and award these contracts to Oilexco ? 3.) Countries, such as France , China, and Russia are regularly awarded lifting contracts. COUNTRIES - not little companies like Oilexco. How is it that they have managed to secure 2 lifting contracts with a third on the way?? 4.) Why would Talisman Energy ( TLM.TSE $44.00 / share ), a straight up Blue Chip Canadian oil & gas company, come knocking on Oilexco's door offering up a sweetheart oil & gas deal worth in excess of $100 million? TLM doesn't need to do deals with a junior, unless there's something in it for them! 5.) How is it that Oilexco is in advanced stage negotiations on 2 oil fields, and has discussions underway on a 3rd oilfield in Iraq? Every company in the world wants a piece of the lucrative Iraqi oil field pie - WHY Oilexco??? 6.) Why don't they promote? 99.9% of all junior exploration companies would be telling this story to the world. Not Oilexco! Look at the website oilexco.com it hasn't been updated since 1997. There is no IR or PR, no 800#. Try calling the office and getting past the secretary. (403) 262-5441 Promotion would bring unwanted attention at a crucial stage in the development of the company. The quick answer to the above questions is: This tiny company has HUGE political clout, and they are on the verge of leveraging that political clout into very large oil $$$. The president of Oilexco must have VERY powerful political connections with either the Iraqi oil ministry, the Canadian gov't, the United Nations, or the US gov't. My guess would be the Iraqi gov't. as they own the oil, but it could be any or all of the aforementioned. To give you an idea of the potential size of the oilfields in Iraq: biz.yahoo.com This is a story about a major discovery in Iran near the Iraq boarder. It is the largest discovery in Iran in 30 years. They have around 3- 10 billion barrels recoverable reserves, the Majnoon field in Iraq ( 16 miles away ) has three times that! The Oilexco annual report has a picture of an oil tanker on the cover. It also has a single page devoted to Iraq. Oilexco states that they are in advanced negotiations for 2 oilfields and have started negotiations for a 3rd field. It also states that a deal with the Iraqi's can be signed without UN approval. Work cannot begin until sanctions are lifted or eased in some way. Every oil company in the world wants into Iraq. Talisman doesn't have the right connections, Oilexco does. If they Talisman did have the connections they sure wouldn't be handing out land packages to Oilexco! On the other hand Oilexco isn't capable of dealing with the massive size and potential of the Iraqi oilfields - Talisman has the money and the capability. A perfect match. I am not a story teller, and I find this hard to spell out. There is a lot of reading between the lines required here. Please read all news releases. Once it hits you and you grasp the enormity of the possibilities you will watch Oilexco! The deal for financing the Talisman project is supposed to close any day now. That will be the first step to the big leagues. With Talisman behind them, we wait for the UN to revise the current sanctions against Iraq, or lift them altogether. Oil analysts expect this will occur before the year is out, impacting directly on the price of oil. Many analysts and commodity traders believe oil is near it's peak and state that the impending easing, or lifting of sanctions on Iraq will drop the price of oil. I originally took a small position in Oilexco as a whim, a lottery ticket. Figuring "if" they get 1 oilfield it would be great! Then Talisman came along and confirmed for me that Oilexco was "in the game". I increased my holdings. Then they got a second lifting contract and the annual report stated 2 oilfields, and negotiating on a 3rd. I upgraded OIL to a strong speculative buy. When they ink the deal with Talisman I would upgrade the play again. Not only would the speculative potential remain but they would have a solid oil & gas asset base to build the company on. The financing and deal with Talisman was to close on September 17th. It has yet to be announced, but the volume and price has been picking up steadily even with a complete lack of information from the company. I believe the market knows all, and it's telling me the deal is done. The obvious short term downside is that they don't close the financing - putting the stock back down to the low .20's again. But even if Talisman goes away it is worth watching because the Iraqi potential is so huge there will surely be other offers coming as we get closer to lifting of sanctions by the UN. Remember , the president of Oilexco has a working relationship with the Iraqi oil ministry. What other North American firms can say that? Could be next week, could take a year but I think we'll be reading about this company in the news one day. Please do your Due Diligence. The above are personal statements only and should not be construed as financial advice. Silicon Investor has an Oilexco thread Subject 22056 I'm trying to get one started on Raging Bull.