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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Haas who wrote (939)	9/30/1998 1:29:00 PM
From: grayhairs	Respond to of 1207

Hi Steven, Strachan countryside is beautiful. Very heavily treed (predominantly coniferous) rolling terrain at the base of the Rockies with trout filled streams, etc. do you think these stocks will most likely stay in drift mode until there is a new drilling program? And is Apache the operator? If so they have to wait to get the go ahead from them, and does everyone have enough cash to sink another deep hole? I expect that the stocks will "drift" until either a) investors realize that the cash flow off 2-22 is real, or b) a second deep test is underway. I don't think that a shallow test will move the stocks as the reserves and production to expect from same are already known. Yes, Apache is the operator on the four section block in which they earned. But, recognize that the operator does NOT necessarily call the shots. In this play, Apache is not a large enough interest holder to "control events". The sisters could actually "put Apache on Notice" and force near term drilling -- they do not necessarily have to just wait on Apache. However, if they did they would tend to alienate Apache and they may not want to do that. I'm sure all parties involved are communicating and working towards mutually agreeable drilling schedules, etc. FST has just farmed out 40% of its interest in the shallow rights. They may not have done that if they had enough cash to keep up with all their budgeted activity. I do not know how the others intend to finance their activity but these wells are very expensive, oil price is down, etc.. Don't be surprised if the small players do additional financings or farmouts. You may wish to contact the companies and enquire as to how they propose to finance the projected activity. Later, grayhairs