Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : coastal caribbean (cco@) -- Ignore unavailable to you. Want to Upgrade?

To: Bobby1418 who wrote (763)	4/13/1999 9:31:00 PM
From: Edwin S. Fujinaka	Read Replies (1) \| Respond to of 4686

The notion of fighting to the bitter end appeals to some people, but I think the politicians have abandoned good sense to side with a bunch of radical environmentalists in this case. For them to run around passing new laws and making new administrative rules solely to prevent CCO from exercising their right to drill is clearly "bad faith" if not fraudulent dealing and there could be a case made for punitive damages in my opinion. I'm not a lawyer, and there may be specific prohibitions against punitive damages against the State Government, but I'll be willing to settle for whatever someone objective says is the actual value. I've been throwing around this figure of $100 Billion which is way beyond anything that I've ever heard mentioned before, but I'd really like to see what anyone else has to say in the face of the Oil & Gas Journal estimate of tens of billions of barrels of oil and the Michigan legal case outcome that resulted in the Miller Brothers collecting around $9/Barrel in the ground. Florida must now view the possible imposition of a $100 Billion judgement as a sort of "death penalty". So perhaps they have to fight to the bitter end or let CCO drill. My suggested settlement is sort of an alternative solution and I think that people ought to consider it.

To: Bobby1418 who wrote (763)	4/19/1999 2:13:00 PM
From: Edwin S. Fujinaka	Read Replies (1) \| Respond to of 4686

Holy Cow! The Panama City NewsHerald's Matt Moore quoted me directly and even repeated my $100 Billion estimated possible valuation! That's the first time that anyone has actually published a number that big. I hesitated to say it myself, except that the Michigan/Miller Brothers Legal settlement could be extrapolated to the $100 Billion. If people want to argue about the numbers, I'd like to see anyone's estimate based on the Oil & Gas Journal Article and the Michigan settlement. Monday, April 19, 1999 Coastal Co., state could try new deal MATT MOORE Business Editor The issue of Coastal Petroleum Co. has raised its head, again. And in the coming weeks, it'll be raising more than that. It'll raise the hackles of environmentalists, raise cries of "foul" from businesses that could benefit from a decision to drill, and most definitely raise the bank accounts of the attorneys arguing for and against drilling. It's do-or-die for the little-company-that-could, because next month the David from Apalachicola journeys to the realm of the Tallahassee Goliath to battle, at least one last time, over the right see if there's a chance it could tap into black gold off the coast of St. George Island. If there's any clear winner it's probably going to be the Panhandle. If there's any clear loser, it's going to be the state of Florida, no matter what the decision is. If the company does drill and does find oil underneath the sea floor, then an economic boom is likely well into the next decade. If the state wins and keeps Coastal from drilling, then Franklin County stands to gain because its ecosystem would be free of any derricks offshore and the chance of an oil spill. The state is already a loser because of the time and money it has spent in denying the permits. Add in the fact that state law already bars any other companies from drilling Florida waters for oil (except for Coastal, which was exempted by a grandfather clause), and then what we have is another round of lawsuits and appeals because Coastal Petroleum and its parent, Coastal Caribbean Oils & Minerals Ltd., is going to want its money back. The scenarios are endless and the company's investors - the stock was trading at about 1 3/4 on the Boston Exchange last week - see the possibility of riches lying ahead. They, too, are offering advice, unsolicited in most cases, as to what should be done. Edwin Fujinaka proffered by far the most intriguing. His e-mails have been darkening my in-box for quite a while, but the last one he sent definitely was a must-read. "I have been thinking about an alternative solution that might work out," his latest missive succinctly stated. "The state should offer to settle with (Coastal) by offering a cash payment of $500 million up front and $50 million per year to have (Coastal) not drill." Edwin goes on to say the state should up its payoff annually by 15 percent for each year Coastal doesn't drill until 2016, when the leases Coastal has owned since 1944, covering a 425-mile stretch southward along the coast, are scheduled to expire. But, here's the catch: Coastal can't just walk away with the money. Instead, the company ought to drill and if it does find the billions of barrels of oil that are thought to be under the sea floor, the state gets a 50-percent cut straight down the middle, as well as reimbursed for the money it paid Coastal. "Remember that litigation could result in a $100 billion judgment against the state, or maybe more," Fujinaka said. "Also, keep in mind that the state of Florida is to receive $13 billion in the tobacco settlement and Florida's lawyers in that case will get $3.4 billion. There is no connection between the tobacco case and Coastal, but I am merely pointing out that the deal I suggest is very modest in comparison." It's an interesting plan, Edwin, but whether it takes root or not is up in the air, or bubbling below the surface. The writer can be reached via e-mail at matt . moore reporters. Net. -------------------------------------------------------------------------------- © The News Herald Copyright Notice