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To: Big Dog who wrote (10460)	2/3/1998 5:24:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 95453

Nice to have you back, Big Dog. No, won't sell any of my NE, but I was buying FGII last week around $24. I think you're right. I see much higher than $50 though (gg) It should be a horserace between the two of them (NE & FGII). I hope NE wins, since my position in it is much larger, but I wouldn't mind a close race. (gg) -Lucretius

To: Big Dog who wrote (10460)	2/3/1998 5:46:00 PM
From: wlheatmoon	Read Replies (1) \| Respond to of 95453

Big Dog, Guys like you make me just miss the hell out of Texas. Am usually a lurker here since I don't have much to add to the intelligence quotient on this thread. Love FGII and love the report you've shared. Thanks. mike

To: Big Dog who wrote (10460)	2/3/1998 7:19:00 PM
From: Lazlo Pierce	Read Replies (1) \| Respond to of 95453

Mike, I passed your FGII post on to the AOL O&G Board. I hope this is OK with you. Wanted to pass along some hope. Please let me know if I should refrain from this practice in the future. Dave

To: Big Dog who wrote (10460)	2/3/1998 10:02:00 PM
From: david james	Respond to of 95453

I was wondering if one of you FGII bulls can help me. I hope its ok on this thread since its relevant to a couple companies in the sector. As you are probably aware, recently there have been announcements of a number of major projects in the North Atlantic off Newfoundland and Nova Scotia. The Sable Gas Field Project off Nova Scotia and the recently approved Terra Nova oil project off Newfoundland are expected to generate contracts totaling approximately $15 billion over the next 10 years. Furthermore, as was announced along with the approval of the Sable Gas projects, contracts will be primarily directed towards Canadian companies employing Canadian workers. Clearly FGII's buyout of the shipyard in Newfoundland puts them in line for these contracts. As far as I can tell, their competition in the region comes from two sources. One is the MM Industra facilities in Nova Scotia (owned by American Eco - ECGOF - a stock I own) and one is the Davie facilities in Quebec owned by Dominion Bridge (DBCO). Like FGII, Dominion Bridge bought the Davie shipyard for $1 with the agreement to upgrade the facilities and employ workers. From what I understand, it appears that all these facilities are capable of working under full capacity. Plenty of Canadian contracts and international contracts to go around. One problem that Dominion Bridge encountered was finding sufficient financing to maintain their facilities at full capacity. Primarily, through what appears to be poor fiscal management, it appears that they have been forced to sell their company (with American Eco one of the suitors). I have a couple questions, both as a potential FGII owner and in trying to understand the Dominion Bridge troubles. 1. FGII stated that the acquired Newfoundland shipyards will produce 1.2 million man hours in employment (that's about 600 fully employed people - 40 hours/week). I assume these shipyards need upgrading as well. How much is FGII investing of their own money? How much financing will they need for this. I assume the reason that the shipyard cost $1 was that a fair amount was going to be needed. 2. What role will this shipyard play in the Terra Nova project? I believe they are the closest fabrication facilities to the area. 3. Any idea how long it will take them to make the Newfoundland facilities profitable and what sort of margins are possible? Sorry for the distraction for those that are not ECGOF, DBCO or FGII holders. David