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

To: RIK who wrote (6459)	5/27/1999 9:28:00 AM
From: VisionsOfSugarplums	Respond to of 24899

RAX: Rio Alto Announces $105 Million Equity Financing fin-info.com RIO ALTO EXPLORATION LTD. (TSE - RAX) announced today that it has entered into an agreement with a group of Canadian underwriters led by FirstEnergy Capital Corp. to issue by way of a short form prospectus 5,000,000 common shares at a price of $21.00 per share on a "bought deal" basis. The proceeds from the issue will be used by Rio Alto to fund its ongoing exploration, development and acquisition efforts. The offering is expected to close on or about June 16, 1999. This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Rio Alto Exploration Ltd. R. T. (Rick) Cones President & C.F.O. (403)716-6227 (403)264-7820 (FAX)

To: RIK who wrote (6459)	5/27/1999 11:30:00 AM
From: Dilution	Read Replies (2) \| Respond to of 24899

Don't be intellectually lazy concerning the SFD. You all miss an important point on the SFD. It does not matter if the partners drill 100 dry holes, the SFD still replaces seismic as a structure finding tool. The SFD surveys 150 miles an HOUR. Seismic surveys 5-25 miles a WEEK. The SFD costs $5-$12 a mile. Seismic costs on average $5,000-$15,000 a mile. The SFD has no boundary limitations. Seismic is limited to the ground, access, etc. The SFD interprets in near real time. Seismic takes weeks to months to interpret. Seismic is $3-4 BILLION industry a year. The SFD has a $220 MILLION market cap. If I told you there was a company that with 4 planes, flying 150 miles and hour, 4 hours a day, 5 days a week, 50 weeks a year. This company would survey 600,000 miles a year. That is the EQUIVILENT of $6 BILLION worth of seismic (600,000 miles X $10,000 a mile average cost of seismic). That is 1.5 times the TOTAL WORLDWIDE SPENDING ON SEISMIC IN 1997. All in one company. And the company's cost to do this... NEAR ZERO. The partners pay for most of the cost. The company gets 8% gross override on all structures found and drilled. That is what you are looking at in Pinnacle over the next year or two. Get it? That is why I can laugh will all of you saying a black box bites the dust. It is a zero, etc., etc. You have not thought this out at all. They can drill the next 100 prospects and all come up dry and this stock will be huge. You will not find anyone who will say this does not find structure as good as seismic. There were 2 possibilities I always looked for: 1) This finds structure only and therefore obsoletes seismic. Worth a lot. 2) Finds structure and hydrocarbons. Worth a lot more! So... I don't care if it is possibility one or two. The stock is huge from here. Anyone read the Calgary Herald on Tuesday??? Here is Peter Cawardine, formerly VP Land, #2 guy at Encal. He said, "It's a technology that has merit for potential applications as a wide-area reconnaissance tool. We're still working with them after two years, if I can leave it at that." Hmmmmm..... Here is the manager of geophysicist at Renaissance, Garry Bilous in the same article: "It seems to show something, but exactly what it is, we're not sure yet... Our results are interesting... we've found some structures, so we'll keep working with it." Finally, Dan Topolinsky, formerly #3 guy at Renaissance, now president of Pinnacle, said on Tuesday in the article, "It is too easy to be skeptical." I repeat, I would have said "intellectually lazy." -Dilution

To: RIK who wrote (6459)	5/27/1999 11:43:00 AM
From: Dilution	Read Replies (2) \| Respond to of 24899

RIK, here is the scoop on Shoal Point. Call Pan Canadian and prove me wrong. I get this from Pan Canadian itself. Shoal Point had a fault running west to east. There were two zones of interest to the north of the fault. The upper zone was the primary zone and the one targeted by the SFD. Pan Canadian drilled to the south of the fault straight down. They encountered structure to the south of the fault that was unanticipated and they got lost. (This structure was the part tested in the press release.) When they got their bearings, they punched through the fault into the north. However, the thrust of the fault was not as steep as they anticipated and they ended up inbetween the upper and lower zones. They headed down from there and hit the secondary zone of interest, the lower zone. The SFD predicted the lower zone was dry. It has not been tested but it appears to be dry. (This in the press release is the testing to be done further.) The upper zone, the primary zone of interest as indicated by both seismic and the SFD, was never reached. The bore hole is too twisted to be used again to reach the upper zone. So they lick their wounds, never having reached the primary zone of interest. The question is, will they drill again? Don't know. -Dilution Disclaimer: For RIK, this is for educational purposes only. For everyone else, for entertainment purposes only.