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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (5508)	10/20/1998 5:14:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 24892

Richard/Benz Energy Prentiss Tomlinson (Benz chairman and a big shareholder) has lined up a group of superstars to create a real O&G company. He got the guy that used to head up the US exploration arm for Shell Oil, plus he got the main exploration guy from The Meridian Resource Co. (TMR). He has built up a team for a company generating $25 mm a year in revenues. This obviously is gonna make for some weird stats given that the company will just barely crack through the US$5 mm mark this year. But even if they just hit half their wells in '99, Strain says they can get to US$26 mm in revenues. They hit about 70% in '97 and about 85% in '98, so a 50% success rate is conservative. Now the latest is that there may not be a rollback. I think they're gonna see how the market reacts to the next one or two wells, and then play it out from there. The fact that the stock stubbornly held above $1 today is very bullish IMO. It shows that there must not be a lot of short-term traders in the stock since they would have all taken that buck today if they had bought the stock in the last month or so. This stock is so highly undervalued that the normal rules of Canadian junior stocks may not apply to it for awhile. Anyone that thinks they may want to build a position in this should start doing so sooner rather than later, IMO.

To: Richard Saunders who wrote (5508)	10/21/1998 3:33:00 PM
From: johnlag	Read Replies (1) \| Respond to of 24892

Regarding BZG I would do some serious due diligence on this dog if I were you. I've owned some before at $3.50... With the amount of debt out, Benz had better start putting some serious production on line. They are already way over a year late on previous expectations of production/cash flow etc. They have been promising the moon for some time now. I would estimate with the latest round of financing....US$27.5 in convertable debentures at CDN$1.75 conversion price, the fully diluted shares out should be around 60 - 70 million. With $40 million in debt, the debt/equity is quite high. A few more bad quarters and this baby could be toast. This is only my opinion - do your own due diligence, like you have been and have fun. John