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Gold/Mining/Energy : Canadian Rocket Red's Picks -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (2043)	2/25/2001 5:31:37 PM
From: Rocket Red	Read Replies (1) \| Respond to of 19697

ONG(cdnx)LURKER's Feb 24-01 I like it when a game plan comes together. The new On-Shore East Coast Gas Plays CDH, ONG, are starting to break out on the up side. ONG broke out on Friday -both the shares and the warrants- on volume They should now be drilling within the upper Bradelle sands, which the mud logs in the old Naufrage Well to the north on the coast contained a lot of gas, but was not tested. The PEI land sale-auction on limited acreage adjoining the current ONG lease area (175,000 ac.) -closes on Wednesday Feb 28th. So tight hole status at least until Thursday probably. Other than that the rumours are already circulating. The media coverage has been excellent without a whole bunch of hype. Of particular interest is the fact that CDH Corridor Resources are drilling at Sussex N.B. - a follow up Well - which reportedly has hit significant gas already. They calculate approx 300 Billion Cu ft. field. Check out their news releases & website www.corridor.ns.ca for your own interest. Pan Canadian reported on Friday they are going ahead on a One Billion Dollar production plan based on One Trillion Cu Ft of reserves on their Off-Shore Sable Island 'Deep Panuke' discovery with production starting in 2005. Compare this to Meteor Creek-on shore PEI test Well which should be completed within the next 10 days. Their target is conservatively calculated at ONE TRILLION CU FT. The difference is that they still have not made the initial discovery, whereas Pan Canadian has drilled 4 successful Wells to date in the Panuke discovery. For sake of argument and the 'best case' scenario assume that ONG will be successful within the trillion cu ft ball park. A pipeline to connect the field to the mainline and tap into the Sable Island pipeline system to the States apparently would be in the $30 million range. The cost of 35 wells at ~$3.5 million per hole to develop the field compared to offshore drilling costs and you have something in the range of ~$150 million plus other stuff to bring production on stream within a much shorter time frame than Pan Canadian's project. You can put any value you want on ONG. A lot of blue sky.