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Gold/Mining/Energy : Harken Energy Corporation (HEC) -- Ignore unavailable to you. Want to Upgrade?

To: Henry Flemming who wrote (3181)	7/9/1998 1:09:00 PM
From: Arktic	Respond to of 5504

Zeev: As the original recipient of the infamous posting re: HEC and "floorless" securities which you authored, I feel compelled to comment as well. First, thank you for making all of us think. Your DD is above and beyond the call of duty. I have no reason to suspect a hidden agenda on your part and believe that you are not short but just want to bring a concern to the attention of those who are long. My expertise in this arena is more on the exploratory side rather than the finance side. Frankly, I have learned a lot from the discourse about "floorless" securities and thank you for that. My company has dealt with the management at ENCAP when I was trying to raise capital to drill in the Cook Inlet. I know how they operate. They make profits through successful E&P. They are not boiler room hucksters running another Wallstreet Wunderkind scam. Their reputation precedes them and will follow them. They know that and are in the E&P investment business for the long haul. If they developed a reputation of tanking companies through a "floorless" scam, their sterling reputation would be damaged. Management understands this issue. Furthermore, one of the occasional posters on this thread worked for HEC and even hired some of the existing staff. This person knows the character of the people involved as well as their sophistication in the financial arena. He is long and is staying long. So am I. If the "floorless" is the demise of the market value of the stock, then we can all know that we were warned. I understand how a "floorless" can be used to scam investors while assuring profits to the money brokers. However, I don't think such a scam will emerge in the case of this company. I am not an expert in SEC rules regarding booking "proved" reserves. However, I suspect what they know is present based upon their geologic data in their various prospects and what they can book using SEC criteria as "proved" are two very different stories. Based upon my communication with folks in the oil patch, it is my impression that HEC could be shod of the Cambulos and still generate huge revenues based upon highly probable reserves already discovered. The Emerald Mountain prospect is icing on an already healthy layer cake. Strictly from the perspective of owning reserves (which I believe will become noteably more valuable over the next few years), owning HEC seems like a "heck" of an idea. I don't have a huge position but I own stock and intend to continue holding these shares. Again, thank you for stimulating me and fellow readers to think. Much appreciated. Paul L. Craig