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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (6436)	5/20/1999 9:29:00 AM
From: loanshark99	Read Replies (2) \| Respond to of 24892

This technology smells of a stock I have had halted for over 4 years now called GDM Grand Development. The claimed to have a vehicle that could do the same thing. The stock ran to 2.50 from pennies and was halted at .70 by VSE. I have thousands of worthless shares. By the way, seen TGL recently? Real light volume but appears as though the Yemen project is ready to bare fruit. The stock may run for a while if so because it is so underfollowed.

To: Kerm Yerman who wrote (6436)	5/20/1999 2:59:00 PM
From: Dilution	Read Replies (1) \| Respond to of 24892

To Kerm: Business model for the Grey Box -- Pinnacle Oil Kerm, I like your reference to this as a grey box and not a black box. I think that with the addition of Dan Topolinski, formerly senior VP Exploration at Renaissance, and Jim Ehrets, formerly senior VP Exploration at CamWest, as well as the Stephens and CamWest people purchasing more stock in Pinnacle's private placement, that at least to the people most intimate with the SFD, they no longer fear the black box label and the fraud that it infers. I just read CIMA's post and see that Dan Topolinski as much as says this himself. This is now truly a Grey Box in that the SFD is being kept a secret as to its inner workings. To get the exact business model you should call Dan Topolinski, President, but let me throw my 2 cents in. To simplify what is in the public documents, Pinnacle surveys tracts of land and tenders prospects to the partners. The partners pay 50% (in the case of one partner) and 100% (in the case of the other two partners) of the survey costs. Essentially Pinnacle has no exploration costs due to this miniscule amount being picked up by the partners anyway. Then Pinnacle gets to chose an 8% gross override in any SFD prospect drilled or a 45% working interest. Pretty simple and obviously quite lucrative. The business model from this side of the business will consist of a huge royalty or revenue stream from all SFD prospects drilled by current and future partners. Expenses will be basically corporate overhead which according to the last quarter was running $120K a month. I would think with Dan Topolinski and Jim Ehrets joing the company, as well as new hires, the expenses are going to be up in the $250K a month range soon. Who knows what they are going to find, what is going to be drilled, but all I know is that with this business model the margins and return on equity are going to be unlike anything ever seen in the oil industry. I don't think there will be many partners over time. Canada, for example, is limited to 3 partners under the existing contracts, I believe. If that is typical then I would guess the company could only have 10-20 partners worldwide over time. How many of those will be majors? I think the more majors, the less partners needed. Part 2 of the business plan is when the company starts accumulating properties for itself and the fun really begins. Once again, I would expect little in the way of traditional E&P infrastructure. Survey teams, land men, and corporate is my guess. No drilling or anything like that. Pinnacle acquires properties and farms out the drilling to someone else paying Pinnacle say 20% to drill and keeping 80% for Pinnacle. What company would not jump at the chance to drill a Pinnacle SFD qualified prospect under those conditions? So it once again comes down to a business model with eye boggling margins and returns. The only question left is how much oil and gas can they find over time? Everyone can have their own fantasy. Like my wife, mine is fat. LMAO -Dilution