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

To: June who wrote (2504)	2/20/1999 11:33:00 PM
From: Edward M. Zettlemoyer	Respond to of 3156

June, thank you for your post, definitely interesting. Sounds like it will take the full 6 months to get all terms accomplished. Right now I'm wandering where Abacan will bottom-out. Let's see Feb 19th, ABACF 3/16=0.1875 divided into $1.80 equals a ratio of 9.6 to 1. Maybe things will someday get better but for right now it sounds like the worse is not over and yet to come.

To: June who wrote (2504)	2/21/1999 1:39:00 AM
From: Arktic	Respond to of 3156

This filing is entirely consistent with the rumors I have been hearing. I suspect that another funding party has been identified per the terms of the letter. This suggests that the company may create the breathing room to stay alive for a while longer. Obviously, their goal is to sell the assets which is probably an intelligent move at this juncture. Also, having the breathing room to make a sale on Abacan's timeframe rather than out of desperation will strengthen their ability to negotiate. Paul L. Craig

To: June who wrote (2504)	2/21/1999 12:14:00 PM
From: FoxyLoxy	Respond to of 3156

Ms. June: Very good digging on your behalf. A most interesting post. There are some real gems in this letter. As I read it, maybe others will see things differently or see additional things: The Total Loan (CSFB) to be put on "hold" for one year. (Why would they agree to this?) Claims against the insurance proceeds dropped and debts written-off. (How reasonable is this, and if they did agree, why would the insurance company pay as Abacan no longer suffered economically - re my posting of last week.) So, Mr. Rice was behind the Board change...... 6 months hold period. (Probably does not matter, State Street is so long at this point. But, these matters are beyond Abacan's powers, they do not write the laws, they can only lobby, and I doubt they have much sway.) Someone else to come up with $1.5 million...... (Who else is so long that they would throw good money after bad and not care?) Monthly cash expenses BELOW $250,00 per month...(And some people thought I was crazy saying that funds were being squandered. Mr. Rice, how about $500,000 per year! Not $3,000,000) Okay, what a surprise, Abacan is up for sale...(They had a data room open over a year ago, and had no real bids, I understand. Why would things be different now? The market for international plays is not in good shape, there are a lot better companies than Abacan out there that are for sale, either queitly or otherwise. Abacan, on the other hand, looks even worse than it did before.) A PPA? This must be a Power contract. (Well, given the information of competitors, why get hung-up on this point. I doubt that Abacan has been the hold-up on an agreement. They may want to comply with this request, but it is out of their power.) To reflect all bids to the Board. (Well, have they not done this? Maybe they have not, which makes me wonder about the integrity of management if Mr. Rice must point out the obvious.) In sum, Mr. Rice will finance the sale of the Company. Now, the $64 million dollar question, at what price? Let me make a suggestion: The stock may get rolled back 10 for 1 to make the $1.80 new price goal. So, now we have $1.80 and 14 million shares outstanding. Mr. Rice knows it needs to be above $1, so I am guessing he will try to "finance" at around $1.50, or about 1 million shares, or 10 million old shares. The other guy will do the same. About 7% of the Company each. Mr. Meyers, about that $3 forecast you made so boldly not so long ago. We all know that was the "old" stock. That will now be $30. Mr. Rice appears to now be running the show. That is likely a good thing, but I do question his ability to do so. Not that Mr. Rice does not have the ablity, but whether he should be allowed as a representative of an institutional investor to do so. I see potential conflicts arrising. Mr. Rice must be desparate and angry, who wouldn't be. FoxyLoxy