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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (22808)	5/21/2003 6:29:51 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206093

Jim, Thanks, I don't think folks are valuing this on the financial numbers at this point. Their oil & gas activities are just noise. These hype artists got that guy Michael Smith to cut 'em a check for $5 M and agree to carry them for the next $9 M of construction costs for the Freeport terminal. I have no way of telling whether he's just a rich sucker or a budding LNG superstar. It would seem that if they are successful in getting FERC approval of their terminal the stock would go up significantly (the Freeport terminal would have capacity to deliver 1.5 BCF of gas a day and Cheniere has retained a 30% interest). They just filed the application in March so although I'm no expert in these matters it would seem that it is still many months before this application would be acted upon by FERC. In the meantime they will probably issue more stock on the hyped stock price. This is how the biotechs have been doing it for the last 15 years. So until the FERC action, it may be a helluva hype play. Then as it gets closer to action time, from what you say it sounds like it would be an interesting short, if they haven't raised much more cash by that point.

To: jim_p who wrote (22808)	5/21/2003 7:36:32 AM
From: wildandwonderful	Respond to of 206093

Reuters UPDATE - Court finds Sempra contract in Calif. valid Tuesday May 20, 9:30 pm ET SAN FRANCISCO, May 20 (Reuters) - Sempra Energy on Tuesday said a San Diego Superior Court ruled that a 10-year contract to provide electricity to the California Department of Water Resources was valid and enforceable. Sempra entered the contract with the state in 2001, at a time when the California power crisis sent power prices soaring, leading the state to enter some long-term contracts in order to insure a steady supply and lock in affordable prices. Some of these long-term contracts later came under fire, amid charges they had been used to manipulate power prices at a time when buyers had limited supply options. But Sempra, a San Diego-based utility company said the court on Tuesday rejected claims by the Department of Water Resources that Sempra had misled it, and had not met contractual obligations. The company had filed a preemptive suit last May, seeking a declaration that the contract was legal. In July, the state followed up with a coutersuit, seeking to invalidate the contract. Sempra declined to estimate the value of the contract, but it has been reported to be worth as much as $7 billion, over a 10-year period. The contract in question is a 10-year contract to provide California with up to 1,900 megawatts of electricity. ++++++++++++++++++++++++++++++++++++++++++++++ noose is getting tighter and tighter on California.