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Gold/Mining/Energy : Vulcan Minerals - C.VUL -- Ignore unavailable to you. Want to Upgrade?

To: pete meyer who wrote (133)	9/20/1998 12:22:00 PM
From: Len Hynes	Respond to of 415

Hi Pete; From what I can gather, Vulcan has ~half million dollars in the kitty....and looking at approx. $200,000 to drill the well. Drilling is a costly venture with high risks...but also high reward potential especially for a junior company. The latest news from the West Coast has Encal Energy Ltd., a Calgary based exploration company funding 37.5% of PanCanadian's well costs at the Shoal Point location.Who knows...we may see Vulcan do some sort of farm-in agreement on the Flat Bay project as well.When the well is drilled, Vulcan will own 67.5% , so the company can afford to bring in a partner for a small earn-in percentage...i.e. 20%. This would enable Vulcan to maintain control and operation. Just speculating, of course, however, knowing Mr. Laracy's management savy, I wouldn't be surprised to see some sort of deal-making on the project if finances become strained. With PanCanadian and Encal preparing to drill beforethe end of the fourth quarter, I would anticipate that Vulcan will be spudding a well during this time as well. I called Mr. Laracy to discuss the Encal situation, however I was informed that he is currently in Calgary on company business. We shall see! Cheers!