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Gold/Mining/Energy : DALTON RESOURCES DAL:ASE -- Ignore unavailable to you. Want to Upgrade?

To: Scotchman who wrote (410)	7/15/1998 9:04:00 PM
From: kingfisher	Respond to of 486

Hi Scotchman, Despite your valiant efforts the sisters continue to flounder.Only tangible evidence leaking out will get things going again. Examples would be a contract signed to drill a second well or evidence of tying in this well.I am willing to bet that there will be very little evidence of anything happening for quite a while.The next key dates are the August land sales and the August 20 deadline for Apache to decide on if they will drill a second well.After that October 20 is the deadline for Apache to spud a second well.Put yourself in their shoes.Why should they telegraph anything if they can avoid it?How many investors can buy with confidence.There are at the most perhaps 30 people who have detailed knowledge of all the data that as been recorded to date at Strachan.They have been sworn to secrecy.If details were to leak out and future land acquisitions were put in jeopardy because of this they risk loosing their companies interest in this well.Apache could sue for damages.Apache itself is vulnerable to getting sued if it were proven that their personnel were responsible for leaks.Persons responsible would be terminated and they would be blackballed from the oil and gas business. It will take a strong constitution to withstand the future weakness of all the sisters stocks due to lack of news.But if any investor has the confidence to withstand the shakeouts he will be richly rewarded,that is if all the assumptions on gas reserves are correct.If Tight Hole Status is maintained into late September and no news has leaked out,then I would view this as being very positive.If a decision has been made not to drill a second well then we will soon find out because Apache would have no reason to maintain this tight hole status. As for me I look forward to the day perhaps in early 1999 that all of the sisters stocks are halted and an announcement is made to the effect that tight hole status is lifted,the third Strachan well is being spudded,the first two have been tied in,an independent engineering firm have calculated based on two wells proven and probable reserves of 600billion cubic with an inferred potential of 1.2 tcf (assuming two more wells to prove this potential)We can dream at least! Richard