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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: Thomas C. White who wrote (4123)	6/29/1998 6:35:00 PM
From: eric deaver	Respond to of 11684

<<No problem here -- keep in mind though that in the case of "proved nonproducing," this is normally in the case of fields which have in the past been producing but which are left idle during the reporting period (for economic reasons usually, where the price of oil is low and extraction cost is high, so they let the field idle until the price goes back up or they find some cheaper way to get it out). It does not usually apply to a field that has never produced. The reason is that until there is some production history from a field, it is very difficult to justify the "proven reserve" issue from an SEC standpoint. >> Along these lines, it is my understanding that "fields" can and do cross across property boundaries and we do have indication that at least some of the properties adjacent to MTEI's are producing properties. With this in place, it is very likely that proven reserves will be identified by Stagg, IMOO. <<Theoretically, of course. It is, however, very difficult to find any "growth" company that you can buy for less than the net asset value . This would tend to mean there's something very wrong.>> Or one just doesn't definitively KNOW the net asset value yet because reserve studies are in progress. <<My main point was to stress that you can't take a number like $200 million "value" of assets that has sometimes been bandied about and extrapolate a target price of the company at $2 or $3 a share. However, I will say that book value (basically, net worth) is, in the end, very relevant.>> No arguments that book value of a company is relevant IF you can determine it. We can not at this time. I think we are saying the same thing here. <<My read is that MTEI does not at this point actually own a good piece of the assets in question.>> They own surface and/or mineral rights for at 2600 acres at an absolute minimum. This will reportedly be the focus of Stagg's first report so it will mean a great deal and should not be marginalized. Eric