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

To: Zeev Hed who wrote (3580)	10/5/1998 10:19:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 5504

Z-Man, The Bolivar area for HEC is just 4 miles away from a major oil pipeline with plenty of excess capacity. The amount of excess capacity on it is expected to be 200,000 bopd in a couple of years. Not sure about the cost but I would be surprised if it approached $1 mm a mile. Maybe someone else can help out here. Hard to see how oil prices could get to $8 since long before that time all the world's wells other than the Saudis' would grind to a halt since it would be uneconomic to produce them. Strain factors in a $1.50 discount to the WTI price for HEC's Colombian oil. This is a reasonable discount based on everything I've heard as long as most of their oil is relatively light & sweet. The Bolivar oil is exactly that. I must say that (heart be still) I am thoroughly enjoying our conversation, given that it is being limited to the O&G stuff at this point!