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

To: Jim Lamb who wrote (7565)	1/3/1998 8:16:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 9164

Jim, at the post office? I agree with you that the break under 2-3/4 was telling of something we are not privy to. In a recent post I tried to speculate what this could be. The only thing I can come up with are problems that the Malaysian and Arakis itself might have with financing, not a cancellation, but potential delays. Furthermore, there might be a worry that Arakis' share will come at the expense of equity holders, like another convertible or debt with a big chunk of warrants. Isuuing more equity at book value is not dilutive to holders, but it would have been much noicer to get additional equity in the teens. On the plus sign, any day we can get news of another gusher or another field, increase in reserves and any one of these could catapult the stock back above 4. I would have expected "pre-announcement" warming up of the stock, and in the absence of such, the belief of a potential stretch which might be tough on equities in general and the overall weakness in the energy sector, I am still waiting to get back in. Zeev