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Gold/Mining/Energy : Red Sea Oil Corporation (RSO) -- Ignore unavailable to you. Want to Upgrade?

To: Timelord who wrote (147)	4/10/1998 7:27:00 AM
From: Gunnar	Read Replies (1) \| Respond to of 332

Alex Romanoff! This is a part of the press release from LOI 980407:" Our technical review of the Libya discovery has established the EnNorth field contains recoverable reserves of approximately 84barrels of oil (64.3 million barrels net to Lundin Oil). almost doubles our existing oil and condensate reserves and a major milestone in the development of the Company. " The headlines concerning the (small) oil industry in Sweden was all about the 84 million barrels news. On the Swedish threads many people were disappointed and some were positive. I think that my position in that argument is quit conservative, but basically positive to the results from Libya. 84 million after one hole will increase later on and the results from the Zelten level makes this to a very interesting field. I think that a conservative estimate for the oil flow when pump is added is 8 000 bpd from the first hole and a 75 % chance for the same in the two appraisals in Oct/Nov . That makes 8 000 + 6000 + 6 000 = 20 000 bpd. If we without knowing the oil price in April -99 postulate that the net revenue is USD 4 / barrel then we will have a p/e-ratio of 4.7 in a year from now in RSO.(20 000 bpd * USD 4 * 340 days of prod. = USD 27 200 000 = ca 38 080 000 CAD * 0,60 (RSO) = 22 848 000 CAD. Then we have: 3 / 22 848 000/ 35 700 000 = 4.7) Add to that the fact that RSO should have their money back for the initial cost. I think Tomas wants to add it himself but he has something to say about horizontal drilling and a chance for more oil. Red Sea Oil is an independent company were I have some shares. Why doesn't RSO produce a press release of there own that contains a little bit more information than did the release above? I am not the only one in Sweden that do have some thoughts about that. But no facts, A R. Regards, Marten