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Gold/Mining/Energy : PEL - Purcell Energy -- Ignore unavailable to you. Want to Upgrade?

To: johnlag who wrote (80)	4/28/1999 5:02:00 PM
From: VisionsOfSugarplums	Read Replies (1) \| Respond to of 165

From Purcell's website: <<Seismic data and the wells drilled to date suggest the property has the potential to contain world class gas reserves in the 300 to 700 bcf range (or more - we don't know at this stage). Based on these possible reserves we estimate the potential economic impact on Purcell to be $2.15 to $4.80 per fully-diluted share (using current longterm gas prices, a pooled working interest for Purcell of 25% and a 10% discount factor) in addition to the per share value of Purcell's other oil and gas assets. Purcell, its partners and other operators in the Fort Liard area have formed a producers group for the purpose of designing and building a jointly owned pipeline and gathering system. A number of transportation options are under consideration. Engineering and environmental work is being completed to facilitate the early submission of a pipeline application for regulatory approval. It is the objective of the producers group to obtain construction permits by August, 1999. Production from the Fort Liard project is targeted to commence in April, 2000.>> EDIT: also from the website:<<The Fort Liard gas pool was discovered by Purcell in 1987 and is contained in Significant Discovery License ("SDL") 99 in the southwestern Northwest Territories. This 60% working interest, 11,000 acre property is operated by the Corporation. The property is located 10 miles east of Amoco's Pointed Mountain gas field. A pipeline owned and operated by Westcoast Energy Inc.terminates at the Pointed Mountain field and has capacity of over 150 mmcf/d, which is potentially available to the Corporation.>> Purcell's estimate of net value should contain the cost of a pipeline, FWIW. Trading seems very contained to me, especially given the range of potential values for the property should it prove up. Regards, t.