Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : OEL.V Osprey Energy Limited -- Ignore unavailable to you. Want to Upgrade?

To: mappingworld who wrote (258)	6/2/2000 9:02:00 AM
From: The Osprey	Respond to of 1134

LOL....OK Olga will do.I hear good things have happened or are happening to-day.Markets look good, the sun is shining,the birds are singing and The Osprey is ever watchful with the keen eyesight.Looks like this will be interesting from here on. The Osprey

To: mappingworld who wrote (258)	6/2/2000 9:12:00 AM
From: The Osprey	Read Replies (1) \| Respond to of 1134

Here is the Analyst Report I was speaking of that I found on the website by Dominick and Dominick: Analyst Report OSPREY ENERGY LTD. December, 1999 Prepared by Grahame M. Notman,Senior Analyst Dominick & Dominick (416) 369-6925 ESTABLISHED 1929 DOMINICK & DOMINICK SECURITIES INC. MEMBERS OF THE TORONTO. VANCOUVER & ALBERTA STOCK EXCHANGES AND THE INVESTMENT DEALERS ASSOCIATION OF CANADA 150 YORK STREET, SUITE 1714, TORONTO, ONTARIO M5H 3S5 TELEPHONE (416) 363-0201 FAX: (416) 366-8279 HIGHLIGHTS In the last three months, Osprey has negotiated joint venture interests in two significant oil and natural gas plays. The first is an oil play with Crestar in southern Alberta and the second with a private oil and gas company with holdings in southern Louisiana. I recently visited the joint venture properties in Louisiana and was impressed with the expertise of the management and the potential to expand the production in the region without the risk of drilling exploratory wells. Osprey presently has revenue from three producing properties which generate around $250,000 cash flow per year net to Osprey. However, the two joint ventures are forecast to increase the company?s cash flow to approximately $3 million ($0.40/share fully diluted) on an annualized basis by the middle of 2000. The net cost to Osprey to participate in these two programs is estimated to be C$1.3 million of which over $1 million is to be spent in Louisiana. To date, it has raised $700,000 through a 2 million share equity issue with warrants attached (at an average of $0.46/share), which, if exercised, would raise a further $920,000. This will adequately cover the initial involvement in the two joint ventures. For an initial expenditure, estimated at US$700,000, production from these two fields is expected to rise to over 1,100 b/d of oil and 2.5 MMcf/d of natural gas (all 15% net to Osprey). This is forecast to increase Osprey?s annual cash flow to approximately C$1.5 million by the middle of 2000. This assumes an oil price of US$19/bbl and a gas price of US$2.30/Mcf). ALBERTA On September 13, Osprey announced its 5% participation in a five well development program operated by Crestar in the Jenner area in southern Alberta close to the city of Lethbridge. The estimated cost of these five wells, 1 vertical and 4 horizontal, is around $2.6 million ($130,000 net to Osprey). The initial drilling phase began early in October and the first three horizontal wells have been completed as successful oil wells. The balance of the drilling program should be completed by the end of December. Phase two of this development program calls for the drilling of a further 5 wells on the same basis early in 2000. The potential from these wells suggests total production of approximately 350 b/d for each of phases one and two which would generate net cash flow to Osprey of around $1 million. Total reserve potential is in the order of 3-5 million barrels of recoverable light oil. LOUISIANA During October, Osprey closed on a 15% working interest in two properties in southern Louisiana from a private Natchez Mississippi based oil and gas company. This initial interest was negotiated for US$900,000 and 500,000 Osprey shares. The first payment of US$300,000 will be paid on December 15th and the balance of US$600,000 is due in either stock or cash by January 31, 2000. The share price for this transaction has been fixed at $0.50/share. Osprey also has a 12 month right at first refusal to increase its working interest to 45%. The two properties, the Livingston field and the Bayou Choctaw field, are located in southern Louisiana, just outside the city of Baton Rouge. The key to this joint venture for Osprey is the depth and operating expertise of the management of the operating company, Petroleum Resources Inc. and its affiliate New Energy Corp. The venture is headed by William G. New, Chairman of Petroleum Resources Inc. and President of New Energy Corp. In 1983, Bill New founded Southern Land & Exploration (SL&E) and took it public on the NYSE at a time when many junior oil and gas companies were filing for bankruptcy. SL&E began acquiring properties and other companies at substantial discounts to the net worth and subsequently built SL&E into a company with over US$500 million in assets. In 1992, SL&E merged with a large U.S. independent oil and gas company at a price of over US$100/share and Bill New retired at age 45. He now feels that with the major oil companies basically leaving the onshore Gulf Coast region, there are attractive acquisition opportunities for nimble, well-financed junior oil companies to fill some of this void. Through Bill New?s private company, New Energy Corp. (founded in 1976) and as Chairman of Petroleum Resources Inc., he will oversee the development of Osprey?s expanding involvement in the Gulf Coast Region. The first two such plays are the Livingstone and Bayou Choctaw fields, both of which are existing oil and gas fields with significant enhancement and development potential which will be exploited over the next several months. This initial investment by Osprey is seen as a stepping stone to a much greater involvement in Bill New?s acquisition program over the balance of 2000. It is interesting to note that if Bill elects to take his option in Osprey as shares, he will own approximately 25% of the company.