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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (576)	5/21/1998 10:42:00 PM
From: Tomas	Respond to of 2742

Tommaso: Expect Sodra Petroleum to rally tomorrow (Lundin Oil owns 54% of Sodra). The Swedish market closed early on Wednesday and was closed Thursday. Desire Petroleum has more than doubled during these two days. Desire is up 232% since last month, Sodra is up 18%. And Sodra was MUCH cheaper already when Desires' rally started!! Both companies own nothing but their Falkland assets, so it's fair to compare the stocks. Sodra should at least TREBLE or QUADRUPLE to reach a valuation comparable to Desire's. I'm not kidding. Desire was overvalued between 50 and 100% compared to Sodra when the two stocks were introduced in April (according to Lundin and Sodra). But Desire is a British company, and Sodra is Swedish... Oil exploration is not a Swedish speciality. And on top of all this: if no oil is found, the shares in Sodra are convertible into Lundin Oil shares! Desire has no similar safeguard. This is a rare opportunity to make big money quickly (provided that Desire's stock price doesn't collapse tomorrow). But I think the Swedish market will finally discover what's going on tomorrow, even Lundin Oil may attract some interest (hard to believe perhaps :-) If the market valued Sodra in line with Desire's valuation, then Sodra's market capitalization would exceed Lundin Oil's!! And Lundin Oil holds 54% of Sodra... It's finally time for the Swedish market to wake up.

To: Tommaso who wrote (576)	5/21/1998 11:06:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Addition to my last post: Desire has a 25% interest in two Tranches, Sodra has a 100% interest in one Tranch. The total potential in Desires two Tranches is 2,7 billion barrels, in Sodras Tranch it's 2,2 billion barrels. (Desire also owns two other remote Tranches not assigned any real value by analysts).

To: Tommaso who wrote (576)	5/22/1998 10:18:00 PM
From: Tomas	Respond to of 2742

The Times, Saturday May 23: Desire Petroleum There seemed to be no stopping this week's high-flyer - Desire Petroleum - which touched 495p before closing 1p firmer at 415p, stretching the lead on the week to 239 1/2 p. The company is currently drilling for oil offshore of the Falkland Islands, and initial signs are encouraging. [The Times got it wrong, Desire is NOT currently drilling]. The company's next-door neighbour, Amerada Hess, the US oil company, is reckoned to have already struck it rich. One company which will will be watching events at Desire closely is Greenwich Resources, 1 1/2 p cheaper at 36 1/2 p. It has a 13 per cent stake in Desire. Westmount Energy, which also has a stake in Desire, firmed 10p to 245p. The Independent, Saturday May 23 The Falkland Islands oil tiddlers had another gushing session although profit takers took their inevitable toll. Desire touched 475p; it closed at 415p, up just 1p. Greenwich Resources, after hitting 41p, ended 1.5p off at 36.5p. Westmount, at one time around 275p, ended at 245p, up 10p.