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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: Dave K who wrote (802)	8/27/1998 6:03:00 PM
From: Peter G. Troyan	Read Replies (1) \| Respond to of 1261

Hi Guys, I just talked to Tracer to try to confirm what I thought was in the news release. So here goes: The Ngurit #1 well indicated reserves up to 50-60 BCF of gas. The intent of Ngurit #2 was to delineate the areal extent of the structure or field. The company believed that if Ngurit #2 was successful, it would have proved 100-140 BCF of gas total. Even though Ngurit #2 was not successful, it does not inhibit the ability of the company to build the power plant. The plant requires 40 BCF of reserves, and a minimum of 4.5mm/cu.ft of gas per day. They believe this was proven with Ngurit #1. This well could have produced enough gas for the plant if it was not damaged. So, the power plant is not off the table. The silver lining here is the deal with the banks. As I understand this, this is a Right of First Refusal Deal. The deal extends to any blocks the banks have which are in arrears. So hypothetically speaking, if another company approached the banks with an offer to acquire one of their blocks, Tracer has the right to match the offer. Sounds very interesting to me, and I could think of quite a few scenarios which could really work to our benefit. The company also believes they will sign the block they are working on in 3-4 weeks. The bank wanted an independent consultant to give their estimate of the reserves, so they could accept Tracers formula for a no money down acquisition. They also believe that when they sign this block, financing will be more readily available for future producing blocks. I understand the banks have several others available for them to look at. IMHO, this deal could really be an asset to us in the near, short and long term. It could really launch us on our way! Keep the Faith Fellas, Pete