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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (75357)	10/2/2000 5:42:38 PM
From: excardog	Respond to of 95453

A gold producer to enter the gas market. More $$$$ in gas at this point> reystar Resources Ltd. 10/2/00 - Greystar To Diversify Into Skyrocketing Natural Gas Greystar Resources Ltd. (GSL-TSE) is to diversify into the natural gas business while retaining its precious-metals asset base. Subject to TSE acceptance, Greystar will acquire working interests in two natural gas prospects known as the Cottonwood Gulch Prospect (42.5%) and North Craig Prospect (35%) covering approximately 3,574 acres (1446 ha) and 3,700 acres (1500 ha) respectively in Moffatt County, Colorado, USA. These prospects, each with the potential for a dozen wells, are in the upper Cretaceous Lewis Formation, the sandstones of which have produced approximately 27 billion cubic feet of gas at moderate to shallow depths. Initially, two wells are to be drilled on the Cottonwood Prospect and one well is to be drilled on the North Craig Prospect for a cost to Greystar of approximately US$330,000 (not including completion costs). Drilling will commence as soon as possible, depending on equipment availability. Opportunities for further development of Greystar's wholly-owned Angostura Gold-Silver Project are still being actively pursued, although cash expenditures will be curtailed until metal prices show marked improvement. Greystar Resources Ltd. is a debt-free acquisition, exploration, and development company with a current cash position of CDN$3.2 million. The Angostura Gold-Silver Project in Northeast Colombia has resources of 4.9 million ounces gold and 18 million ounces silver (estimate released 23 November 1999). Kinross Gold Corporation has stated it owns 21.6% of Greystar. For more information, please visit our website at greystarresources.com or contact:

To: isopatch who wrote (75357)	10/2/2000 6:27:55 PM
From: Archie Meeties	Respond to of 95453

Iso, I think equity markets are linked to oil more closely than the economy, strange as that sounds. For that reason, any near term bullishness I temper with a sobering look at the DOE graph of crude inventories. The mistaken belief that oil can not create inflation is only one of the gases inside the bubble. The best numbers on inflation - the JOC-ERCI data - was recently testing the speeds which were last seen before Greenspan began his recent series of dollar strengthening/commodity weakening rate hikes. What this brought home to me was that AG can not control the inflationary effects of oil easily. Most of the disinflationary power of his rate hikes was achieved not through diminishing demand (I think the number of SUV on the road actually increased in the past year) but through strengthening the only currency in which oil settles in. Unless the dollar continues it's rise, further increases in the price of oil can not be mitigated without slowing the economy further. I also noticed that the slightly more efficient market, the bond market, rallied as oil retraced earlier this year and subsequently took more of a downward slope as oil began its rally to 37 a few weeks back. This market moved directly in response to oil prices, and if it had continued downward it would have signaled the possibility of a further rate hike. SPR release has only delayed what the bond market was beginning to understand. It will be a difficult day when the market begins to discount spr releases, but I suspect that after one, or possibly 2 more releases (I'm 100% sure they're coming) the spr will be totally ineffective in affecting prices for more than a few days. Before then I suspect we will have seen the last legs of the equity bull and the beginning of a bull in another market. I'm not going to mention which one.