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

To: Crossy who wrote (43567)	5/6/2005 8:35:39 AM
From: Ed Ajootian	Respond to of 206338

Crossy, AEN -- Austral, like most microcaps, is capital-constrained and needs to limit itself to just a small piece of any of these high-cost and/or high-risk wells. I was very impressed with the terms upon which they were able to farm out this Cardiff well -- full funding (subject to a $15 M cap) by the farmee (Genesis, the largest electric company in NZ), with Austral retaining a 25% carried interest. These are about as good farmout terms as you will ever see. This is what FX Energy was able to get with Cal Energy for their first well in Poland. Even with a quarter of the well, since Austral has < 20 M shares out, if they discover anywhere near the amount of gas they are targeting the stock will go up big.