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Gold/Mining/Energy : Bearcat (BEA-C) & Stampede (STF-C) -- Ignore unavailable to you. Want to Upgrade?

To: gamer who wrote (678)	3/20/1998 11:06:00 PM
From: Bearcatbob	Read Replies (1) \| Respond to of 2306

Gamer, I see you are from Huronia. My family has vacationed there for years. We really enjoy the area resorts. From Cleveland they are a short drive with a pleasant weekend in Toronto on the way up and a visit with family in Buffalo on the way up and down. Now we have Casino Rama for more fun. We will be there again in July. Maybe we can have a celebration. Another thread member is from the Toronto area and perhaps he would join us too. As we wait for news next week the weekend allows for some relaxed discussions. Bob

To: gamer who wrote (678)	3/21/1998 5:07:00 PM
From: grayhairs	Respond to of 2306

gamer, (#678) Gee, Golly, Thanks!! Why would anyone bother with rights at this point? I assume you mean the companies so, IMHO, the reasoning is twofold: 1) The main reason is to raise the $$ desperately needed to hit the land sale on April 1/98. Without additional $ it is my guess that BEA/STF will not be able to join the land bid with Esso and BKP. If that is true, these two small companies that had the vision, insight and perseverance to chase this huge play along will fall by the wayside as the bucket at the end of the rainbow gets scooped up by BIG BOYS. As a shareholder, it kinda p's me off. How about you? But, worse yet, think about how Jack and his staff must feel. 2) The second reason is "butt protecting". McLeod knows he has something big in the Esso well. He knows he has "something" in the BKP well. He knows that there are, what, 6 sections of land (in the backyard of his discovery(ies)) about to be sold. And he also knows that he needs REALLY BIG $$$ for that land sale or else the play that he has pushed for 5+ years is going to go to others!! HE CAN/WILL NOT ALLOW THAT TO HAPPEN. THIS FIND IS HUGE!! HE WILL DO A PRIVATE PLACEMENT TO KEEP A PIECE OF IT!! (I sensed from an earlier post that someone on this thread thinks that a P.P. would be at $0.35/$0.70. I say, "Maybe that high".) Now, imagine that you are McLeod and have been forced to do the P.P.. How do you like the prospect of standing up and facing your "old" shareholders and justifying the P.P. that diluted the hell out of them. No problem at all IF you have first done a rights offering. That's why I say, in part this offering is Butt Protecting for McLeod and his Directors. They must. They did. Re: "If the results are good....more per share" -- Because the wells are Tight Holed, BEA/STF can not tell their shareholders what they have encountered. So, 1 year hence (when they will be allowed to tell shareholders) it is too late for a rights offering. The lands will have already been sold, and I'll bet, some of them drilled. gamer, (#679), I think the manner in which someone would purchase 200,000 shares would depend upon the person's timing, objectives and intention (ie. long term player vs. speculator vs. day flipper). Assuming a "typical" industry agreement, Esso has no choice but to invite BEA/STF (and of course the other participants) to participate in a collective bid. The way it works is that Esso will propose a bid. It will be discussed and perhaps "fine-tuned" a bit. When the bid is acceptable to all, everyone simply antes in their share and the bid is submitted to the Crown. If someone does not like the bid (or can not ante in their share) they can usually elect to either take (a) a smaller interest, or (b) a hike!! The other participants then carve up the non-participating interest on a pro-rata basis to their interests and ante in their increments. It will get interesting if Esso proposes a bid and BEA/STF believe the bid is "light" and needs to be stepped up a few bills/acre. This may happen. Beauty is in the eye of the beholder after all. The above procedure would apply to any lands within an Area of Mutual Interest as defined within the governing agreement. IF some of the sale lands are outside the AMI, then there is no obligation for one party to invite another to jointly pursue a bid. They can compete against each other.