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Gold/Mining/Energy : PEL - Purcell Energy -- Ignore unavailable to you. Want to Upgrade?

To: deepenergyfella who wrote (145)	10/24/2000 10:06:33 PM
From: rajaggs	Respond to of 165

deepenergyfella/Pud, Here is an extract from CEO Alston's message, which highlights their expectations of cashflow in 2001, with a link to his message at Purcell's website, where there are financials and news releases from past. purcellenergy.com The K-29 well will continue to produce at high rates and generate substantial cash flow: Although water production can cause operating headaches, engineering solutions are available. In Purcell's opinion, we do not have a reservoir problem and substantial gas reserves will be produced from the well. We estimate K-29 production for the month of September will generate net operating income to Purcell (after all costs, expenses and royalties) of approximately $1.4 million. Purcell is not changing its forecast for 2001 cash flow of $38 million: In July, Purcell announced its forecast of next year's base cash flow of $38 million ($1.52 per share). If the current strong gas prices hold we expect to exceed this forecast. The Corporation is also pursuing a number of near term opportunities that would bring additional production and cash flow. Our strong financial position enables Purcell to capitalize on opportunities as they arise. M-25 activities are proceeding with production startup expected by the end of October: The M-25 well is currently being recompleted with 7 inch production tubing and is expected to produce at 75 mmcf/d of raw gas. Undoubtedly, M-25 will behave uniquely as is generally the case in deep foothills gas pools. M-25's bottom hole is located about 3.5 miles south of K-29. Initial production for M-25 will be 75 mmcf/d. Combined Fort Liard cash flow in November when both wells are on stream will be at least $3 million.[monthly] I have held this for some months but took the share price slide a month ago, to almost double my holdings. Ahead right now and looking for much more in future, from JV with Talisman and other opportunities they are developing. Hope this is useful to you. 'jaggs