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

To: Peter Berkman who wrote (7636)	1/15/1998 3:51:00 PM
From: Zeev Hed	Respond to of 9164

Peter, all your querries are indeed rational. But, how do we know that the $200 MM will not be on the "back" of the current investors. Could it be that international lenders still view Sudan a dangerous situation? Could it be that the only financing available would be equity or worth debt convertible to equity at the avearge of the last five trading days (also known as floorless debs)? Would this cause dilution of current holders? Could it be that the SEA situation causes a decline of 2%-3% in world demand for oil, thus causing crude to once more breach 16 and go all the way to the 13-14 range? I think that these two parameters weigh neavily on the stock. Erosion in the price of crude causes decrese in AKSEF's book value (stock price floor) and possible dilution could firther lower the bottom. Right now I am the $1 dollar man, but god saves us from floorless bandits, if they come to the scene, even that could be an optimistic stance. Zeev

To: Peter Berkman who wrote (7636)	1/15/1998 4:32:00 PM
From: Alan Wojtalik	Read Replies (1) \| Respond to of 9164

<Why would all these companies come on board and be involved in the project if they thought it a waste of time and money?> Keep in mind that many involved will make money on this land regardless of the stock price. Why would the Chinese care if the stock price of AKSEF is $1 or $10? Shouldn't even matter if they are working with AKSEF, State Petroleum, XYZ Corp or the govt of Sudan, so long as they still get their oil. We as stockholders will only benefit if AKSEF the corporation increases earnings. As of this point, AKSEF is still a money LOSING machine. IMHO, AKSEF the stock will not appreciate until AKSEF the company starts making money for its shareholders.