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

To: Razorbak who wrote (3477)	8/29/1998 4:33:00 AM
From: Ditchdigger	Read Replies (3) \| Respond to of 5504

Razor, what impact do you think Russia's situation will have on crude prices? Considering they are the largest producers in the world and they're current economic situation, it would stand to reason they will be selling vast quantities(also including metals) without much regard to price. This combined with Venezuela's current economic breakdown(and we know they will sell cheap) would appear to have a negative impact on crude prices..Comments? DD

To: Razorbak who wrote (3477)	8/30/1998 7:24:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 5504

Razor, I see the stock crawling back up toward the $4 mark on the news of the Torcaz 5 well and the Palo Blanco pipeline completion. By then we should be close to the point where they are drilling through the zones of interest on the Islero #1 and hopefully we will get some leaks and that will dictate where the stock goes from there. If they get to the point of deciding to complete and test the Islero I feel we have a heckuva shot at $6. If it tests successfully then I feel $7 -- 8 will be the range for the post-news high. If we get an announcement that the Colombian government has approved HEC's plans for a pipeline in the Bolivar area we get another point or two pop at least. Of course if the overall market continues its meltdown then all bets are off! HEC is one of few remaining development stage O&G stocks with a market cap. over a quarter billion $$$$. A lot of funds can't buy stocks under that market cap., so if they want an exposure to O&G and don't want to just get a mature producer then that just leaves good 'ol HEC! HEC is a great play on the long-term recovery of oil prices. If you feel that oil prices will eventually come back up (as I do), then you want to buy a company that is in the midst of proving up a massive amount of oil, but will not get to the point of producing most of it until the next millennium is well underway. That way, they don't waste selling the stuff at $13 a barrel and hopefully they sell it when oil gets back to its long-term equilibrium price of about $18 a barrel. HEC is so much more fortunate than, say, Triton Energy, who is in the unfortunate situation to have fully developed its massive fields precisely at the point that oil prices started to make their swan dive. Are you planning to cover your HEC short before the Islero news is due out? This would seem to make enormous sense, given that, if I understand your thinking, you believe the price of HEC stock will go down slowly, regardless of whether HEC hits the Islero or not. Obviously, you must realize that there would be a significant pop in the stock on exploration success for the Islero. Why subject your investment to that risk when you can step to the sidelines and still make money irrespective of the result on the Islero?