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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals) -- Ignore unavailable to you. Want to Upgrade?

To: Sheri who wrote (20)	2/8/1998 1:22:00 PM
From: Jeff Harrington	Respond to of 1757

From a Fax received by Gabard this information was obtained from the company (and transcribed over the phone). This is the company's Bob West overview: Bob West Acquisition Field Overview Book Value: 25 Million Property Description: 290 Lease hold acres containing 3 producing wells all acreage contains proven natural gas reserves. (Plus 14 Miles of installed pipeline). Revenues: Natural Gas price averages $250 per MM BTU 1997 with annual high price of $3.07 for MM BTU in December. A typical fill well produces 10 MM CF per day. At 1997 prices, a typical well will produce $540,000 per month after royalties, production severance taxes per month after royalties, production severance taxes and direct lease operating expenses. At expected 1998 prices, the well will produce monthly revenues over $648,000. Revenue Development: Arcon will re-complete the three existing wells exposing additional reserves to the well bores, thereby increasing production. The company will also drill and complete a new well to a depth plus or minus 17,000 feet during the last quarter of 1998. After the 1998 activity the company will drill 4 new wells per year for 5 years to develop the lease hold on 80 acre space. The operating revenue for the project will be over 1 billion. Upside Development: the build has been developed on 40 acre spacing to date. Should the company elect to develop the lease hold on 40 acre spacing the recoverable reserves and revenues could be doubled. Reserves: Proven developed natural gas reserves in the three existing well bores are estimated at 35 BCF. Proven undeveloped and possible natural gas reserves on the remaining leasehold are estimated to be 360 billion to 500 billion Cubic Feet. Capital costs: Costs to re-complete the three well bores and drill one new well in 1998 is 15 million. Annual drilling and completion budget for each subsequent year is 20 million. Total development costs is 115 million.

To: Sheri who wrote (20)	2/8/1998 1:54:00 PM
From: Ga Bard	Respond to of 1757

The Ethanol Division is another part of this company. Here are some facts on Ethanol: 1.) American motorists have driven more than one trillion trouble-free miles on Ethanol-blended fuels. 2.) Ethanol's high oxygen content reduces carbon monoxide levels more than any other oxygenate. The U.S. EPA, in fact, has determined that Ethanol-blended fuels reduce carbon monoxide emissions by 25-30 percent. 3.) Ethanol replaces lead as an octane enhancer. A 10% Ethanol blend will increase octane by as many as 3 points, making Ethanol a natural choice for today's lead-free, high performance fuels. 4.) Chrysler, Ford and General Motors recommend the use of Ethanol in gasoline, while every auto manufacturer in the world approved Ethanol blends and provides warranty coverage for properly blended Ethanol fuel. 5.) Many gasolines are now blended with oxygenates. General Motors recommends that you use gasolines with these blending materials, such as ... Ethanol. By doing so, you can help clean the air especially in those parts of the country that have high carbon monoxide levels. - General Motors Auto Warranty 6.) Ethanol is the only motor fuel additive that will not contribute to the `greenhouse effect.' Instead, Ethanol, made from corn, helps reverse the global warming that currently threatens the environment. 7.) Ethanol blends dramatically reduce hydrocarbon emissions, a major contributor to the depletion of the ozone layer. 8.) Ethanol's performance has been proven by years of use. The Nebraska State Highway Patrol has successfully used Ethanol-blended fuel for the past fourteen years. The Ohio State Highway Patrol has introduced Ethanol into their fleets, and it has provided excellent results. 9.) Ethanol is more than just an automotive fuel additive. Ethanol blends have been proven to perform in the small two-cycle engines that power many of the tools used around our homes. A recent test of small two-cycle engines using Ethanol blends found that after more than 1,300 hours of rigorous operation, not a single fuel related problem was detected. Furthermore, the following manufacturers and distributors include Ethanol blends under their warranty coverage: Sears, John Deere, Lawn Boy, Polaris, Skidoo, Briggs and Stratton, Tecumseh and Evinrude. 10.) 3 time IHRS World Champion Alcohol Funny Car Drive, Mark Thomas, uses Ethanol to fuel his 1995 Dodge Avenger. Ethanol has proven to be a performance fuel. 11.) In 1952 Chuck Yeager broke the X-1 using pure ethanol. 12.) In 1989, Professor Max Shauk set a world record and was awarded the Harmon Trophy for flying a single engine aircraft across the Atlantic using pure ethanol. 13.) One of Hitler's secret fuels was ethanol made from potatoes and sugar beets. Both the United States and Germany used Ethanol extensively in WWII. 14.) The U. S. EPA has determined that a 10% Ethanol blend will reduce carbon monoxide emissions by 25%. Happy trading GB