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Gold/Mining/Energy : Stanford Oil & Gas (SOG was STB) -- Ignore unavailable to you. Want to Upgrade?

To: Saverio who wrote (86)	5/7/1998 3:50:00 PM
From: johnlag	Read Replies (2) \| Respond to of 196

I think there may be some confusion about the 'big play' not working out. By choosing to not participate in the completion phase, the company still holds the interest in the well. But is subject to a 500% penalty of the total completion costs. What this means is: If Benz (the operator) incurs $1 million dollars in costs during the completion stage, they will get the first $5 million in payout from the proceeds and then Stanford will participate in its 20%. Stanford still holds the interest in the field, as well. The total AFE on this well was for US$3.7 million. In order to move ahead, Stanford would have had to write a CDN$800,000 check. This completion is pretty risky, and is using the latest in fracturing technology. Better for the company for Benz to spend and prove the theory and we can participate later if things work out well.

To: Saverio who wrote (86)	5/12/1998 7:15:00 PM
From: Saverio	Read Replies (2) \| Respond to of 196

Input from the Oil and Gas analyst at "Buy Low Sell High" in answer to my request for an update on Stanford: <<Stanford Energy is an interesting story. I would suggest that investors read their latest news release dated May 4, 1998. The company has had numerous problems with drilling costs far exceeding budgets and has had to back out on some drilling prospects which had substantial speculative upside. The stock is falling as a result, as those who were in the stock for the speculative nature of it are getting out and fundamentalists are starting to buy in. The company is looking to achieve cash flow of $5 million or $0.18 per share for fiscal 1999 ending May 31, 1999. This normally means that the stock should be trading in the $0.72 to $0.90 range. The company currently produces 1100 boepd of which 25% is oil. I think the stock will be very volatile over the next few weeks and those investing should be ready to accept some risk of a further decline. However, the stock could also bottom bounce at anytime. I wish I could be more specific but there are a lot of unanswered questions at this time.>> Personnally, I'll stick around for a while, as current stock price does not reflect what should be its "normal" trading range, and 75% of their production being in gas is a plus for the time being. Cheers. Saverio