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Gold/Mining/Energy : Central Pacific Minerals & Southern Pacific Petroleum -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (38)	7/19/1998 1:46:00 PM
From: CLK	Read Replies (2) \| Respond to of 90

This is increasingly attracting my attention. You mentioned the currency situation and that is largely why I am interested. The way I figure it, and correct me if I am wrong, there are estimated to be 28 billion bbls altogether in the shale. So a 50% interest is 14 billion and half that for say CPMNY to make it very simple, knowing it is slightly more due to cross ownership, gives 7 billion divided by 135 million shares fully diluted gives approx. 50 bbls per share of oil in the ground. Of course it will take years to extract it and the % extraction might be just guessed at 80% so we can say 40 bbls/share and say there is 5 dollars profit per bbl gives 200 "$" value per share. The thing that is most important however is that after the Euro. becomes the currency in which oil is valued as opposed to the dollar and this will happen because the Euro is 15% gold backed (see the USA Gold site for a discussion if interested), then the dollar value of the oil in the ground will increase. Thus this could represent not only an oil play but a Euro vs the dollar play as well. Perhaps it is coincidence and perhaps not that the Euro comes into it's own Jan 1999 and the production model for this play comes on stream in l999 as well. In any case it probably will increase the value of this in the long run. In the "short" run further meltdown in Asia could make the price of CPMNY cheaper and make buying it more attractive. An unusual situation.