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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: Darrel Drab who wrote (418)	5/8/1998 5:27:00 PM
From: Syncrude	Respond to of 1207

I suspect that the increase in the share price of TKE was due ONLY to speculation on Strachan. With respect to Meekwap, as it is a horizontal well, do you know what types of production declines can be expected? Until news comes out on Strachan, I don't think the market will factor in Meekwap.

To: Darrel Drab who wrote (418)	5/8/1998 10:26:00 PM
From: kingfisher	Respond to of 1207

Hi Darrel, At current market price Tusk is showing an increase of $5.5 million in market capitalization above last reported net asset value.The latest well from Meekwap added 1700 boe of production per day(net 300 to Tusk) or an increase of 50% above 97 exit rate production.A total of 15 potential wells with working interests of 17% to 46% have been indicated by 3-D seismic survey.Assuming all locations are drilled within 2 years and a 80% success rate results in 12 new wells with average production of 500 boe with an average working interest of 22% this will equal 6000 boe net 1320 boe to Tusk. Based on the above example speculation of Meekwap prospect I would have to say that the Meekwap potential is not reflected in current market price because if it did stock would be trading closer to $2.50. To compare First Star as added about $10million in market capitalization due to the Strachan well. Tusk at $1.90 or less represents very good value and based on my speculation of the minimum potential reserves of Strachan and continued success at Meekwap with no dramatic decrease in production because of horizontal drilling we could see a $3.25 stock within 2 months and much more by year end if everything falls into place. Richard