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Gold/Mining/Energy : Stanford Oil & Gas (SOG was STB) -- Ignore unavailable to you. Want to Upgrade?

To: Saverio who wrote (148)	10/19/1998 5:26:00 PM
From: Flea	Read Replies (1) \| Respond to of 196

Saverio, I didn't think you were as stubborn as me...I thought you left us a long time ago. Haven't got much to say other than it's been a long wait and I, probably like you, could use a hit. Will our patience finally be rewarded? Guess we'll find out soon enough. Fingers still crossed. ps. I don't think the BZG jump today had anything to do with the Bellevue well but still nice to see that juniors can jump like that.

To: Saverio who wrote (148)	10/26/1998 9:39:00 PM
From: Flea	Read Replies (1) \| Respond to of 196

Wildhay River properties sold; six unsuccessful wells; property agreements Stanford Oil & Gas Ltd SOG Shares issued 12,982,959 Oct 26 close $0.63 Mon 26 Oct 98 News Release Mr. Brad Colby reports During the fiscal year ended May 31, 1998, the company sold its principal producing properties at Wildhay River, Alberta at an opportune time, receiving an excellent price. The proceeds were successfully leveraged to acquire a significant producing asset base from Enserch Exploration, Inc. These assets are principally in Texas, Oklahoma and Louisiana. The reserves associated with these properties are approximately 3,394,000 barrels of oil equivalent, net to the company. The present value of these reserves (discounted at 8 per cent) is $24,735,000 (U.S.). The company believes that this asset base will provide a solid foundation for future growth in cash flow, net income and reserve value. During the year the company also participated in the drilling of six exploratory wells unrelated to the Enserch properties. All of these wells have proven unsuccessful. These results were compounded by the fact that most of these wells experienced substantial cost overruns. Drilling and completion service providers increased their prices by as much as 50 per cent, due to increased industry demand, which accounts for much of the cost overruns. Low commodity prices have had a negative impact on cash flow and have forced the company to draw on its line of credit to provide working capital needs. Management is working towards a number of developments to increase cash flow and build the company's asset base. The company recently concluded an agreement to purchase its joint venture partner's 10 per cent working interest in the Enserch portfolio of properties. The purchase price was $2-million (U.S.) with an effective date of Sept. 1, 1998. The company now controls 100 per cent of this portfolio of properties. This acquisition gives the company the control it needs to focus and move forward with the exploitation and development of these properties. The company has identified several projects which, if successful, would double its current daily production. Many of these projects will be done in the next six months. As a result of this acquisition the company has reduced its general and administrative expenses by approximately $15,000 (U.S.) per month. The company will also continue to participate in quality exploration and development projects in Canada. The recent decline in commodity prices has forced industry partners to seek third party participation and financing for many excellent prospects. The company is reviewing several such projects and anticipates participation in one or more of these by Dec. 31, 1998. In addition, the company will continue to seek out additional acquisition opportunities both in Canada and the United States. The company has an excellent relationship with Bank One of Texas which should enhance the company's ability to finance any future transactions. At the East Lost Hills prospect, the Bellevue No. 1-17 well near Bakersfield, California, continues to drill towards an anticipated total depth of 18,500 feet. The prospect generator, Denver based Armstrong Resources, estimates that there could be in excess of 600 feet of pay in the well and that the reservoir could contain up to 1.2 billion barrels of recoverable oil. The initial test well is now at 17,450 feet, after a successful side tracking operation. There have been encouraging hydrocarbon shows during the drilling process particularly in the shallower McDonald shale formation. The shows, while in no way conclusive, indicate that this could be a productive zone. The key target remains the Temblor sands and the test well appears to be supporting Armstrong's geological model. Management is encouraged with progress to date and believes that the initial expectations when making this investment could be realized, however, this will not be known until the test well is drilled to total depth, completed and brought on production, and additional confirmation wells are drilled and completed. The company is optimistic about the outcome of the East Lost Hills prospect and will continue to seek participation in one or two similar high potential (and high risk) projects in the coming years. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com