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Gold/Mining/Energy : ABC - Abacan Resources, Nigerian Oil $$$ -- Ignore unavailable to you. Want to Upgrade?

To: SDR-SI who wrote (2491)	2/17/1999 10:51:00 PM
From: FoxyLoxy	Read Replies (3) \| Respond to of 3156

Mr. Rosenberg: I have made reference to Abacan facing other competing gas supplies/suppliers from the Delta in at least two previous postings. Most of the gas in the Delta is currently being flared - therefore has an opportunity cost of $0 an mcf (perhaps even negative, as regulations limiting flaring are forthcoming). The only cost of concern for Chevron is the construction of the pipeline. The supply of gas would be virtually limitless - there is over 100 TCF of proven gas reserves in the Delta. Abacan competing against this type of project is like (pardon the vernacular) "pissing into a gale". I believe some agreed with me, but a few just scoffed at my comments. As you can quickly surmise, Abacan's piddley project has virtually no hope of being even remotely competitive: either economically or politically. The cost of Chevron's pipeline can be amortized over a very long time-frame because the supporting reserves are vast and proven. The Chevron project is likely available for special low cost IMF financing. Abacan's power project is just a "technicolor pipe dream", IMHO. Glad you noticed the article. Now, let's discuss a few of other areas concern: 1. Insurance proceeds. - Mr. Lee, you avoided my question. 2. Production facilities - it "went" along with the IMA bath-water. 3. Total Debt - $30 million guaranteed by Abacan, and they no longer own or operate the asset (and, hey, what is the IMA field production now, that is the "primary source" of funds to repay the Total loan and pay the production facilities costs. I am guessing that it is a brutal story by now and the guarantee is very real. What about the production facilities shortfall.....) 4. Anyone look at the circular for the AGM? You can find it on their EDGAR filing. (www.sec.gov) Lots of big salaries! Anyone still a believer? FoxyLoxy