To: IndioBlues who wrote (62249 ) 3/16/2000 12:50:00 PM From: JungleInvestor Read Replies (3) | Respond to
Some of the oldtimers on the thread will remember that last year at this time I was 100% invested in Seven Seas Petroleum (SEV). What a mistake, it eventually sank from 4 1/4 to 1 1/2 and I lost a lot of money! I was like George of the Jungle and ran straight into that tree. Since then I invested in a number of other Oilpatch stocks and recouped much of the loss. Well March madness is here again and I sold everything to invest 100% in SEV (except for naked long term calls in FLC, OEI, EOG, PXD, UPR, XTO and FGH). What would compel me to do such a thing again (beyond the obvious "he's crazy"). In my view, SEV has the greatest risk/reward of any stock I ever saw. It is sitting on potential reserves estimated from 1 billion bbls to over 7 billion bbl. The stock went to $30 when they hit paydirt on 5 straight wells, but then they had misses on 5 and the stock tanked. They then hired a new team of field management and technical people and recompleted one of the misses using horizontal drilling (vs. vertical on all others) and hit black gold again. Horizontal drilling appears to have resolved the technical problems of reaching the oil. They have tested the reservoir that is close to the surface (about 6,000 feet drilling depth) extensively and submitted an application for the field to be declared commercial by the Colombian government oil agency (Ecopetrol). Pressure in one well oscillated with the moon cycle, which effect, their chairman says, has only been seen in a handful of the world's largest reservoirs. There is an underlying deep reservoir that is also potentially huge.
