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Gold/Mining/Energy : Transglobe Energy Cp -- Ignore unavailable to you. Want to Upgrade?

To: Chris St Amour who wrote (1394)	5/4/1998 5:59:00 PM
From: Donald Lickman	Read Replies (1) \| Respond to of 2826

Thanks for the info Chris. I really don't put much value on tgl's US operations as far as upside for shareholders is concerned. G & A expenses are brutal for North American production, not to mention the typical heavy royalty burdens. NA producers need at least 2000 BOPD to start making a decent buck. In fact, in a recent survey by the Independent Petroleum Association reports that petroleum states in the US rank very low on a world scale for commercial attractiveness. For example, Texas came in at 180th and New Mexico at 138th. In fact Yemen also rates very low with harsh production splits and potential for political instability (Thankfully Yemen has potential for big fields which makes up for all that). The upside lies outside of NA and I'm waiting to see what tgl's management does in regards to new international ventures (and new funding of course). Donald PS- Shakush I really don't think exploration wells can be compared to shooting fish in a barrel. And also remember hitting a well in Yemen is one thing getting into production is a whole new ball game and is where the problems start, although a nice problem to have.