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Gold/Mining/Energy : DALTON RESOURCES DAL:ASE -- Ignore unavailable to you. Want to Upgrade?

To: RIK who wrote (256)	4/28/1998 12:05:00 PM
From: grayhairs	Read Replies (3) \| Respond to of 486

Hi RIK, Yes, I guess I am. Very sorry, Michael. My sincere apologies to you. I am "sensitive" because I feel for the guys in public companies that are considered "bandits" and "con men" every damn time they happen to drill a dry hole. I may be wrong, but I don't think very many actually do it on purpose!! They are not making widgets and pumping out a fixed volume annually with a predictable unit margin. They operate in a risk business!! Give them roughly 10 exploration shots and they'll probably give you 1 success. People that speculate have to realize that they are speculating and that not all speculations lead to riches overnight. WRT the TKE NAV of $0.41/share, I came up with that number by doing "risked exploration economics", the exact same way I evaluate whether or not I wish to participate in the drilling of an exploration well. I considered each of the announced zones, with assumed pay parameters typical for wells in the area (but typical only for the zone in the case of the Mississippian), my own expected probabilities of successful completions for each zone, and a gas reserve value in the ground of $0.75/mcf. I used 10.5 MM shares f.d. for TKE and came out with a "composite risked value for the uphole shallow gas" = $0.41/share. (Production rates are not "used" in these calculations but are inherently assumed to be "economic"). Did you get a different value? What did you get? How? Later, grayhairs