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

To: SDR-SI who wrote (2561)	3/10/1999 9:36:00 AM
From: SDR-SI	Read Replies (1) \| Respond to of 3156

TO ALL: Off the newswire re: ABACAN > > > (BSNS WIRE) Abacan Announces Extension to Meet Nasdaq Requirements and D Abacan Announces Extension to Meet Nasdaq Requirements and Date of Shareholders Meeting Business Editors HOUSTON, Texas--(BUSINESS WIRE)--March 10, 1999--Abacan Resource Corp (NASDAQ:ABACF) (TSE:ABC.) Abacan Resource Corporation ("ABACF:NASDAQ;ABC:TSE") announced today that it has been granted an extension from March 22 to April 7, 1999 to comply with the $1.00 per share minimum bid price established by the Nasdaq National Market for continued listing on that market. Unless the minimum trading price is met (during a ten day period) beginning April 7, 1999, the Corporation's common stock will be delisted from the Nasdaq National Market. The Corporation has called an Annual and Special Meeting of Shareholders to be held on March 29, 1999 in Houston, Texas to obtain approval from its shareholders for a reverse stock split that the Corporation expects will enable it to satisfy Nasdaq's minimum trading price requirement. Proxy materials were mailed to registered shareholders and delivered to intermediaries on March 5, 1999. The Corporation has also been advised by The Toronto Stock Exchange that it does not currently meet the TSE's requirements for approval of a reverse stock split. Consequently, if the Corporation proceeds with a reverse stock split of its common stock to meet Nasdaq's minimum requirements, it is subject to de-listing from the TSE. The Corporation also announces that effective March 1, 1999, it has relocated its Houston office to 3050 Post Oak Blvd, Suite 699, Houston, Texas, 77056. Certain statements in this News Release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. In particular, there is no assurance that a reverse stock split will be approved by shareholders or, if approved, that it will be implemented by the directors of the Corporation. If implemented, there is no assurance that a reverse stock split will enable the Corporation to meet the Nasdaq National Market minimum trading price or other continued listing requirements during the ten day period following the reverse stock split or during any period subsequent thereto. Consequently, there is no assurance that the Corporation's common stock will not be subject to future compliance review by Nasdaq or that the Corporation's common stock will not be delisted therefrom at a future date. Abacan Resource Corporation is an oil and gas exploration and development company --30--mjb/clv* CONTACT: Abacan Resource Corporation The Corporation, 713/479-9770 < < < Steve

To: SDR-SI who wrote (2561)	3/10/1999 7:10:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 3156

Steve, unfortunately, the movement from "Possible", to "Probable" to "Proven" do require some "green stuff", a currency this little one is kind of short on. I still fear that someone else will benefit more than the long suffering holders of this stock. Sam, you had a little run to 7/32, some 40% gain there, did anyone let you profit from it? Now we are bouncing again against the 5/32 low, if we break this, who nows, maybe 3/32, or maybe an indication of an end game. I have not the foggiest. Zeev

To: SDR-SI who wrote (2561)	3/14/1999 8:31:00 PM
From: Razorbak	Read Replies (4) \| Respond to of 3156

Altman's Bankruptcy Predictor Analysis of Abacan <<With so many other positive developments in the area, as pointed out by Ed's post, it's getting harder and harder to keep wearing those damned blinders and having hope for Abacan.>> Steve: There is a specific mathematical formula called the Altman Bankruptcy Predictor that is used in the turnaround industry to assess and predict a company's short-term survival prospects. The formula is named after the renowned Edward I. Altman, the Max L. Heine Professor of Finance at New York University's Stern School of Business, who published the initial research back in 1968. stern.nyu.edu Altman's Bankruptcy Predictor (or Z-score) is calculated as follows: Z = (1.2X1)+(1.4X2)+(3.3X3)+(0.6X4)+(1.0X5) where: X1 = Working Capital / Total Assets = WC/TA X2 = Retained Earnings / Total Assets = RE/TA X3 = EBIT / Total Assets = EBIT/TA X4 = Market Value of Equity / Book Value of Liabilities = MVE/BVTL X5 = Total Sales / Total Assets = TS/TA The Altman Z-score is used to determine a company's short-term outlook or future viability, where: > 3.0 ... Strong 1.8 - 3.0 ... In danger < 1.8 ... Near death FWIW, I calculated Abacan's Z-score as follows for FYE 1998 (12/31/98). All data was obtained from the company's 1998 Annual Report via the SEDAR website... sedar.com The results of the calculation are not really surprising, but nevertheless illustrative of the company's current status... X1 = WC/TA = (3.336-45.738)/95.809 = -0.443 < 0 (assume zero, just to be fair) X2 = RE/TA = -226.679/95.809 = -2.366 (ditto above) X3 = EBIT/TA = (-16.875-0.181+3.022)/95.809 = -0.146 (ditto above) X4 = MVE/BVTD = (114.3710.3438)/45.738 = 0.860 X5 = TS/TA = 12.445/95.809 = 0.130 Z = (1.20.0)+(1.40.0)+(3.30.0)+(0.60.860)+(1.0*0.130) -or- Z = 0.646 The above number is well below the "near death" threshold (1.8), obviously not a good sign for Abacan shareholders. The recent trend is the most important indicator of future success or failure because companies' fortunes never turn on a dime. It would be rather interesting to look at the trend over the last few years to see where the company crossed over into the crisis zone. I would suspect it was back in 1997. According to one scholarly journal, Altman's Bankruptcy Predictor has proven consistently accurate over the period of time since its development. The original samples in Altman's research displayed accuracy of 95 percent based on data from approximately one year prior to failure. The accuracy dropped to 72 percent based on two-year data. Subsequent tests on firms that have gone bankrupt since 1968 have shown an accuracy level of 82 to 85 percent. Altman's model is used for a number of different purposes throughout various industries, and not just the turnaround industry; i.e.: - Credit analysis for accept/reject decisions, - Investment analyses for money managers and investment bankers, - Auditors' analyses for going concern assessments, - Legal analysis for prudent man and failing company doctrine defenses, and - Merger target analyses both before and during reorganizations. What the formula doesn't tell you is what to do with the results. That you have to determine for yourself. All of the above is, of course, my opinion only. Best of luck to all. Razor