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

To: patron_anejo_por_favor who wrote (80905)	12/6/2000 5:34:49 PM
From: darra	Read Replies (2) \| Respond to of 95453

Yes, long PYR. If you look past the location of the PYR hq office, you will note that they hold 12.11% of the 29,000 acre East Lost Hills Deep Gas play. Cannacord is projecting a FD share value of $143.00 for PYR at a 10 tcf reservoir. 10 tcf is a bunch of gas and it is right alongside Interstate 5 130 miles north of Los Angeles. They approaching 1 tcf in the proving dept. Many informed observers think 10 tcf is not just possible, but likely. Take the time to check out the East Lost Hills play. There are a number of junior Cdn companies involved. PYR is the only U.S. listed co. Regards darra

To: patron_anejo_por_favor who wrote (80905)	12/6/2000 5:54:16 PM
From: russet	Read Replies (1) \| Respond to of 95453

Will the gas shortage problem in California be so short term? This is the debate for sure,...we in Canada are doing our best to burn up a lot of gas right now heating our homes (-15 C low temps each night now in main populated areas of Ontario,...no relief in site for next week,...wind chills of -30 C). As hard as we try, reserves drop every year in spite of huge drilling efforts in the last few years in North America. Demand just keeps rising with residential heat and electrical generation conversions, and electrical generation demand keeps increasing thanks to all that high tech stuff. I guess we will just have to place our bets and wait and see. In the meantime PYR's partners will start producing 15mmcf/day plus liquids from first competed well on East Lost Hills structure by mid Jan 2001. Second well could be tied in about 4-5 months later. They are learning as they go, so flow rates in later wells expected to be higher due to better completions. First well thought to have reserves of 200-400 BCF ignoring liquids which are significant. Three drill rigs running continuously now. Even at $5 per mcf, these wells will be extremely profitable. At current prices the well drilling costs of $10-12 million per well are paid off in 6 weeks of production. Don't own PYR but I own some of the partners.

To: patron_anejo_por_favor who wrote (80905)	12/6/2000 6:02:09 PM
From: que seria	Respond to of 95453

Patron, PYR doesn't yet sell gas into Calif market, but as of January Berkley's #1 well at East Lost Hills commences production, ~12% of which is attributable to PYR. Production will start at ~23mmcf/d, and may be increased to the 30-40 range once Berkley decides what actual production indicates it ought to do. The absolute open flow rate (AOF) of the well is said to be far higher than that. BKP#2 should flow by next June, if things work out consistent with the story of #1, and if timing stays on track. This is a mammoth target (actually, more than one, as BKP#3 is drilling a separate but adjacent structure). If it plays out anything close to what the JV participants expect, it will be a company maker many times over for the junior JV participants. In that event, the reserves booked and cash flowing over the next 2-3 years of development drilling should double Berkley's market cap, and will multiply that of juniors. These are very deep wells tapping very large reservoirs; there was no measurable drawdown even after flow testing at BKP#1. The blowout of the discovery well (pre-Berkley) emitted gas, condensate, and eventually water at an estimated AOF >100mmcf/d. There is evidence of multiple producible intervals. I am very overweighted in the play. I'd buy (at today's prices) Berkley, Hilton, and PYR. Pick the order according to your risk tolerance. ROYL is a present producer, so I can't really compare it to the ELH companies if you need something gassy in Calif right now.