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

To: Ed Ajootian who wrote (26077)	10/9/2003 9:31:27 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206212

Dow Jones Business News Fmr Ambassador: Russian Landscape Open For US Energy Cos Thursday October 9, 9:22 am ET By Roy R. Reynolds, Of DOW JONES NEWSWIRES HOUSTON -(Dow Jones)- Rapid changes in the political climate in Russia have opened a myriad of inroads to the country for U.S. energy companies, according to a former U.S. ambassador. "I think the opportunities for those kind of industries in Russia are immense, " said James Collins, ambassador to the Russian Federation from 1997 to 2001 and currently an adviser for Houston-based law firm Akin, Gump, Strauss, Hauer & Feld. Akin Gump opened an energy-related office in Moscow in 1994 to capitalize on the recently privatized oil and gas industry following the collapse of the Soviet Union. The firm became an adviser to Lukoil the following year. Collins and other members of the law firm's Russia/Commonwealth of Independent States team met with reporters Wednesday to discuss aspects of September's U.S.- Russian energy summit in St. Petersburg. During the summit, the business world waited for confirmation of reports that U.S. companies Exxon Mobil Corp. (NYSE:XOM - News) and ChevronTexaco Corp. (NYSE:CVX - News) were pursuing a stake in Russian oil giant YukosSibneft, formed Friday by a merger of Yukos and erstwhile rival Sibneft . The fact that such reports were taken seriously marks a big step for the Russian energy industry, said Rick Burdick, Akin Gump's chair for business transactions on the Russia/CIS team. "The environment has completely changed," Burdick said. "For Yukos to be the target of western companies five years ago would have been unthinkable." Government reform, though, has begun to push changes in the country's oil and gas industry. "(Russian President Vladimir) Putin is a modernizer," Collins said. "He's going to have five more years, and we're all probably fortunate for that." The U.S., in an effort to diversify oil supplies after the terrorist attacks of September 11, 2001, began tugging on the sleeves of Russian officials. The push for Russian oil has brought American technology and influence into the country's oil sector, Collins said. "When people looked around (to diversify supply), the only place that seemed very operative was in Russia," Collins said. That, in part, has led to U.S. companies seeking corporate-level investment in the Russian energy sector. "The valuation model for those companies is a fraction of those for western companies," Burdick said. "They're about an eighth or a tenth of what they are for western companies. "But a barrel of oil sells for about the same price all over the world, essentially." A decade ago, he said, foreign companies wouldn't have dared think of acquiring a stake in a Russian company. "At the beginning, western companies didn't know much about Russia, so they looked for asset-level investments," Burdick said. But Russian companies are now starting to hew to the same corporate responsibility roles adopted by western companies, which makes investment more desirable, said James Langdon, Akin Gump's senior executive partner on the Russia team. "It takes transparent accounting and good management to encourage the investing public," Langdon said. "Those are very powerful incentives to do the right thing." -By Roy R. Reynolds, Dow Jones Newswires; 713-547-9208; roy.reynolds@dowjones.com ********************************************************** Once Teton Pete gets to, say, 5,000 bopd net production, they would provide a great takeover target for the larger US companies that are looking to kick-start a Russian play. They are at about 1,800 bopd now.

To: Ed Ajootian who wrote (26077)	11/4/2003 3:07:56 PM
From: Ed Ajootian	Respond to of 206212

Denver's Teton Drills Entrepreneurial Profits In Russia's Smaller Oilfields HOUSTON--October 31, 2003--Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). When looking at world oil business prospects, it is worth checking the smaller independent companies who are finding entrepreneurial niches in oil exploration and development and in the supply of technical and engineering skills and product in the development of new resources. If the true entrepreneur is someone who has established and developed a business form the smell of an oil rag then Teton Petroleum Company (AMEX:TPE, FRANKFURT:TP9) (Denver, Colorado) could be a good example. The majors talk of the entrepreneurial spirit that urges them onto bigger and better bucks, but it is the new independent that can often point the way to leading edge success and new business models. Teton has focused on new oilfields in Russia since 1997 and is currently looking into ten new fields. Since 1997, it has been working in three Siberian fields in western Siberia; Yeguryakh, South Yegurakh and Golevoye which have an estimated 19.8 million barrels of proven oil reserves and a further 13.2 million barrels in probable reserves. The adjacent TNK-BP Samotlor field has a resource of eight billion barrels. The company's chairman, H.Howard Cooper told The Russian Energy, "When we started operations in Western Siberia, the local unemployment stood at 50-60% and we had plenty of experienced oilmen to choose from. It was our key to success. In addition, Halliburton, Schlumberger and other international service providers were already engaged at large projects nearby and we obtained a guaranteed access to Western technologies." Cooper went on to say that local geologists have found enough oil to last for another 25 years including hundreds of small, but commercially attractive fields throughout Russia. In the Soviet era, many fields were discovered and tested and then plugged for later use that gives an almost zero risk to drilling outcomes. He claims that the few alternative locations for oil exploration and development investors such as Venezuela, Columbia, Nigeria and Indonesia are all politically unstable compared to Russia. Although Canada as an investment option is stable Russian reserves are much cheaper, he said. Teton's new partner in the Russian venture, Goloil JV, is Russneft with which the company signed a binding and broad MOU (memorandum of understanding) early this month. The agreement covers all aspects of the joint operations in Goloil operations in western Siberia and provides a framework for future development of additional oil projects in, and outside, Russia. The agreement recognizes the requirements of privately held, independent Russneft, operating in the Russian market and Teton, a public US company grading on AMEX. Russneft is a family business with political and business connections through Ingush ethnic clan connections (oil is at least as thick as blood). The company was established in 2002 by the former president of Slavneft, Mikhail Gutseriyev, who this year became president of Russia's association of small and mid-sized oil and gas producing companies, Assoneft. Teton has taken on an 'interesting' if not 'volatile' type of partner. This species are not rare birds in Russia. Teton is looking for new opportunities, as the estimated price pr barrel should be under one dollar with a market return of $4 to $5 dollars pbb. The company sees process rising sharply when new pipelines facilitate access to the Pacific coast and to Western Europe and the US. This will allow exporters more than the usual 35% quota of production and as domestic Russian fuel consumption is expected to remain more or less at current levels through 2020 all additional production will be exported through the new pipelines. (Energy Strategy Through 2020 is the official, published Russian energy policy statement). With a production target of 100,000 bpd is in the mood for acquisitions and capital. In the last week of October Teton announced that a private placement of preferred stock to institutional and accredited private investors was 51% oversubscribed closing out at $7.548 million. The company, which bought its stake (currently 35.295%) in Gogoil for around $500,000 in 1996 has run debt free through capital raised through share issues. In 2002, it saw an income growth of 326% and the year on year comparison for January-July 2003 to 2002 the income increase from $2.1 million to $6.4 million was 204%. The rag smells good when the oil is in the black. (possibly a new Ingush proverb) Industrialinfo.com (IIR) is the leading provider of global industrial market research. We specialize in helping companies develop information solutions to maximize their sales and marketing efforts. For information send inquiries to oil&gasproductiongroup@industrialinfo.com or visit us at www.industrialinfo.com or www.iirenergy.com.