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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: Peter G. Troyan who wrote (975)	5/5/1999 6:37:00 PM
From: drrobinson	Read Replies (2) \| Respond to of 1261

Peter: As one of my "cronies" said: "The gloves are off!" In response to your latest drivel, you are correct in stating that the Iran deal will likely cost millions of dollars, but if we do this as planned, this money will not come from Tracer. Ideally, we will get 100% of a big project, and then bring in a major oil company to cover 100% of the development costs of the project in exchange for a majority interest. Take a look at Bow Valley Energy (BVX on the TSE) if you want to look at an example of how another company did this in Iran. Yes , Peter Holstein will potentially profit from the Iran deal, but only if the deal is successful. In the proxies that have just been mailed, the shareholders are asked to approve the terms of the deal with the Mullins Group. If you go through the numbers, Tracer ends using shares valued at $2 to pay about 15% of the discounted net present value of the project. In other words, Tracer is effectively having to pay only about 4.5% of the actual value of any project to get into Iran. And most of the shares that would be issued are subject to release from escrow only as cash flow is generated from the project. All in all, I think that these are very favourable terms for Tracer. As to building a company slowly with domestic production, this is very "doable", but would make Tracer just another little domestic oil company like all of the others. In my experience with Arakis, we generated a lot of attention, and added a lot of market cap, by going after a big project in a place that no one else wanted to be. As to the $5000 finders fee on the private placement, this was not for me but rather for a fellow that works for my private company, D.R.R. Capital, and who helped to put that financing together. As to me "calling shots" through Uncle Larry, if you will look at Larry's resume you will notice that he is a very successful, experienced businessman - believe me, Larry calls his own shots. Finally, as to my past record, if you did some proper checking you will see that I left Delgratia in February of 1996, so that I could concentrate on rebuilding Arakis. It was not until well into the next year before Delgratia fell apart - and I had nothing to do with it. And Arakis never fell apart; it was simply taken over by Talisman. The only company that I did not leave voluntarily - Odyssey Petroleum - ultimately fell apart as an investment, but continues on as an operating oil company, with cash flow from ethanol operations and exciting oil and gas concessions in Egypt. I wish that you would stop dealing in insinuations and innuendos (otherwise known as an "Italian suppository") - please stick to the facts. DRR