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

To: excardog who wrote (82742)	12/26/2000 5:47:12 PM
From: jim_p	Read Replies (2) \| Respond to of 95453

excardog, I don't know why it's trading above the target price, but MRO is paying for the 400,000 net acres in the Powder River Basin. If you include the probable and possible undeveloped reserves it works out to be about $.50 per Mcfe. The company was just formed two years ago. "Headquartered in Denver, Pennaco was founded in 1998 and is entirely focused on the production of coal bed methane gas (CBM) from the Powder River Basin, located in northern Wyoming and southern Montana. The company is one of the largest leaseholders in this play with over 400,000 net acres and current net production of over 50 million cubic feet of natural gas per day. Net proven reserves are estimated at approximately 200 billion cubic feet, with over 800 billion cubic feet of upside potential. Marathon estimates that the ultimate acquisition and development costs of the proven, plus probable reserve base will be around $4.50 per barrel of oil equivalent" Jim