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

To: energyplay who wrote (75608)	11/27/2006 8:46:15 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206175

energyplay, Gasco (GSX) -- I looked them pretty closely a few years ago, and it seems that they have yet to "crack the code" in the Uinta Basin. The sands are tight there and by the time you spend all the money required for fracing, the economics just don't add up, at least at current gas prices. They have spent about $180M on their proved properties so far, and even after writing off $51 M of that in a full-cost ceiling writedown for 2Q, were not able to generate a profit in 3Q. I suppose at $10 prices this play would work, but do you really want to make a bet like that? One stock that I like in the "resource play" category that has been equally thrashed & trashed is Westside Energy (WHT). They have a large acreage position in the Barnett Shale, with most of the acreage being in the fringe areas of the play. They are presently drilling out the acreage they have in the main fairway, with decent success, but the market has really hammered the stock nonetheless. If natty prices got back up to $10 all this fringe Barnett Shale acreage will become very valuable.