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Gold/Mining/Energy : International Rochester Energy Corp. (T. ROH) -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (253)	12/16/1997 7:00:00 PM
From: Ditchdigger	Respond to of 934

This is the key<Harken's Chairman, Mikel D. Faulkner, stated, "We are particularly interested in information from this well so that we can finalize our production facility and pipeline plans for the Palo Blanco field."Faulkner continued, "We are anxious to maximize the 'in-country' production and corresponding cash flow that the Palo Blanco discovery can provide.">..DD

To: Ditchdigger who wrote (253)	12/16/1997 8:44:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 934

DD, They are drilling very close to the Estero #1. They're actually starting the hole right at the same place as where they started the first one, but this one is going out at an angle so the bottom-hole location a quite a ways off from the bottom hole location for Estero #1. But my understanding is that this well is not meant to try to push the edge of the envelope on finding out just how big the Palo Blanco field is. I'm not sure what Mikel is getting at other than the fact that this well will be the first true, unfettered test of the Ubaque and the first test of any kind of the Guadalupe and Mirador formations. It sure is great to be back drilling holes again in any event. And the neat thing is, we're gonna be drillin' continuously now for the rest of the winter! Gonna make ski season real interesting! If anyone can find another company with a market cap. under US$20 mm that has a 25% interest in a non-stop series of three wells, two of which are low risk development wells and could get 10,000 bod, would you please let me know? I like owning these kinds of companies man. Its time we put the potential production from the Palo Blanco into perspective for ROH. Lets say they get a total of 20,000 bod out of these first three wells. This means that ROH will get 2,000 bod after Ecopete back-in and after royalties. Say they get a net-back of US$12 a bbl. That works out to annual cash flow of C$.88! Junior O&G companies typically sell for at least around 5 x cash flow. So we could easily be looking at a C$4 stock by this time next year. And that doesn't even give any value for any new plays they would more than likely have gotten into by then. I'm real busy these days so if I fade in & out of the boards here you will know why.