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Gold/Mining/Energy : TYK (VSE) Tanganyika Oil -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (287)	6/19/2000 4:57:00 PM
From: Greywolf	Read Replies (1) \| Respond to of 500

Road Show, Lukas Lundin and Edward Molnar have been in Stockholm for a smallish road show. The salient points from the meeting are as follows; Egypt - At the current production rate cashflow is CAD$0.63 per share. Netback is CAD$8 pbo. - Relative API is 26. - Current production rate is 4.000 bopd and will be increased to 5.000 bopd within 3 weeks. Later during the year 6.000 bopd is the level strived for. - The pipeline is set to be completed in about 3 months. Total cost for pipeline and one more drill in June is CAD$16 million. - Only 3D seismic is being used in the exploration, hence the good early results. - Hana 6 will be drilled in June. - Total reserve is thought to be 100 mmbo, Hana to date has uncovered 16 mmbo. Syria - It took all of 3 years to get the contract for the concession. Which is large enough to take up 3% of Syrias total area. - The contract is for the Oude and Al Hasakeh field the first has production the latter is for exploration. The Oude field has been drilled prior to the tune of 41 holes and seismic was done by the French in 1997. The data has not yet been totally evaluated. This site is guessing that this is being done right now. The field has 17 producing wells today that only bring up about 2.000 bopd with current technique. This can and should be open for an increase rather promtly. - TYK is obliged to invest at total of $5 over five years and if nothing comes of the project the contract ends there. - Lukas Lundin expects TYK to farm out 50% of the Syrian project a project that will take at least 6 months to set up and a further 12 to set up production. - The relative API in the Oude field is in the region of 26 to 13 API. Rather heavy. - The project is close to major pipelines and the cost for use is $0.75 pbo. - Potential reserves are estimated at 500 mmbo with some talk of 2 billion barrels in place. Estimates... Tanzania - Further drilling (2) will be done in country in October. - The rigg will be taken from Egypt and plans for this are in the pipeline. - Total cost for the drills comes to about $6 including the cost of transport. Possible cost saving with a time share with Canop is on the cards yet TYK does not count on it. - A 25% farm out is being negotiated at a price of $7 ie more than the cost of the drills..Petro Canada is the whisper partner according to Tomas on the Dibben.com site. A reliable source! - The deal for Tanzania gives TYK 75% of production until set up costs are met after that TYK gets 47% of the production. General - The spread of ownership in TYK is Lundin Family 20%, Canadian 25%, Swedish 25% and Swiss 30% - TYK is going for a listing on the TSE but not today any other place like SAX. - The stock price was discussed and caused some confusion yet $5 seems a fair value if the Egyptian project goes well, as it does seem to do as closer to 400.000 bo have been produced to date.