Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (3203)	7/12/1998 8:08:00 PM
From: drjoedoom	Respond to of 5504

Zeev -- << That is one of the things that puzzled me reading these documents, 7% of just three wells (it did not seem that it was interest in three "fields" but I may be wrong) vs 6.6% of the whole company (about $50 MM at let say $5 share, meaning after three years of monthly compounding at 15%, or 10 MM shares). I am not even assuming a decline in the price due to the floorless feature, mind you. What kind of a deal is that? >> I'm still perplexed that you don't simply read the Development Finance Agreement. The agreement makes it clear that the earnings interest applies to a an entire prospect area. For example, << the term "Cambulos A Prospect" shall mean . . . that portion of the lands covered by the Cambulos Association Contract which are included within the Commercial Field surrounding the Initial Cambulos A well. . . . >> [page 1] This supports Ed's conclusion that if the exploratory wells are successful, HEC will buy out the investors in a heartbeat at ONLY a 25% per annum premium. What kind of deal is that? Sounds like a win-win deal. Investors get 25%-plus; HEC finances the exporation for an elephant and suffers minimal dilution. Joe p.s. Steve & Ed -- Great commentary. Thanks.

To: Zeev Hed who wrote (3203)	7/12/1998 10:54:00 PM
From: Ed Ajootian	Read Replies (4) \| Respond to of 5504

Zeev, Had a great long message composed and then it bombed when I went to send it. In any event, Joe has given a great response to your question and I won't even try to top it. In the end it just boils down, in my simple mind, to whether the drill bit starts spittin' up some o' the black stuff. If you continue to want to belabor this issue about the terms of the various HEC securities, I would suggest that you start your own thread so as not to continue to gum this one up. Let's hear it from the peanut gallery, who would like a separate thread for discussion of HEC securities? BTW, I will tell you right to your cyber-face that you are a total wimp not to talk to management. You are the equivalent of a jounalist, and a classy journalist always is willing to confront someone he is writing about.