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Gold/Mining/Energy : ARAKIS: HIGH RISK OIL PLAY (AKSEF) -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (7334)	11/22/1997 10:36:00 PM
From: Tomas	Respond to of 9164

<<What do you think is the best way of aligning oneself with the Lundins so that if they profit, you profit? ...Are there any further possibilities?>> My 3 favourites: 1. Sands + IPC = Lundin Oil: Market cap. US$ 400 M (Lundin owns 28,3%) (Stockholm, Toronto, Nasdaq) 2. Vostok Nafta (means Eastern Oil in Russian): US$ 190 M (Lundin 64%) (Stockholm) 3. Tenke Mining: US$ 50 M (Lundin 54%) (Toronto, soon also Stockholm) As to TYK, I don't intend to buy the stock myself, it's only wild cat drilling, something like 5% chance of hitting anything. But the potential is HUGE.

To: Tommaso who wrote (7334)	11/22/1997 10:53:00 PM
From: Tomas	Respond to of 9164

Lundin really wants Arakis, but does Arakis want him? Not yet, but what about the following scenario: Arakis is associated with the Khartoum regime because of Khan's close relation to the ruling junta. Lundin, on the other hand, has already made contact with Garang. Lundin is friends with Kabila in Congo (Tenke Mining is very important to Congo's economy), and Kabila and Garang are old comrades. Suppose Garang obtains power over the South (by seizing Juba, or through peace negotiations). Or just suppose Garang strenghtens his position a little at a time. In a hypothetical situation like this, maybe Arakis' shareholders would be more likely to have an approving attitude to Lundin? I own Sands and IPC myself, and I wouldn't hestitate to buy Arakis if I didn't expect Arakis to come to me some time during the first half of 1998. Lundin Oil is probably up to something, the Sands/IPC merger is expected to be completed during December.