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

To: fp_scientist who wrote (77026)	1/1/2007 8:46:47 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206329

fp_scientist, BPZ Energy (BPZI) -- Thanks for alerting me to the change at Morgan Keegan. Subash did in fact leave them and they have temporarily suspended coverage of the E&P industry. It will be interesting to see where he went to. As I said earlier, the Amistad property is not in competition with BPZ's Phase I or Phase II gas-to-power project. The only possible competition would come in Phase III, which is many years down the line. At this point, from the information available, it appears that such competition is either of little consequence or does not exist. So I continue to vociferously disagree with your contention that "there is competition for the BPZ Equador project". At this point there is not enough information to make that conclusion IMO. Maybe we should just agree to disagree on this point, and check back with each other sometime in '09 or thereabouts. I also vociferously disagree with your comment that its "just like buying a Peruvian utility". BPZ has 4 TCF of 3P reserves, at a buck an mcf this amount of reserves would be worth about $70/share. In addition to using the gas for power, there are many opportunities to use it for industrial purposes, and maybe even a gas-to-liquids plant or LNG liquifaction plant. So there will always be some way to monetize the gas if they find it in enough volume. IMO, to say that the gas prospects for BPZ are no "real upside" is silly.