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

To: Thomas Kelly who wrote (1174)	8/11/2000 8:34:11 PM
From: Hickory	Read Replies (1) \| Respond to of 2357

As I predicted, the announcement of the 2nd q. earnings is more or less a non-event. I believe that most interested parties had a pretty good idea back in early July what would be announced. I believe that potential investors are waiting for the following developments: 1) elimination of the debt; 2) elimination of the negative "Retained Earnings;" 3) completion of the tender offer for the minority interest; 4) renewal of exploration and development licenses on favorable terms; 5) long-term evidence that Hurricane will not be blindsided by detrimental government actions; 6) continuation of world oil prices in the $25/barrel range long enough to allay fears of another big drop; and 7) expansion of exploration and production into more than just one developing nation. To my way of thinking, the earnings announcement included two very encouraging items: 1) earnings are hitting the bottom line and the negative Retained Earnings has been significantly reduced 2) the registration of the 88% of ShNOS shares was completed on Aug. 4, clearing the way for the tender for the remaining 7.6 MM shares. I expect the share price of Hurricane to track the achievement of the 7 major milestones listed above. HHLA's earnings are great. But it still is a company with large negative Retained Earnings, with current liabilities greater than current assets, with (if the report is correct) an agency of the Kazakhstan government taking us to court to force a rollback in K. domestic petroleum product prices, and with its income source limited to a single developing country. These kinds of things are going to be a drag on its price until they are cleared up. We're making significant progress but we're not there yet. I expect to see a steady step-like progressive increase in share price as significant progress is made toward achievement of these 7 investor goals. But that isn't going to happen overnight. Hang on, patience will be rewarded. Hickory