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To: Ed Ajootian who wrote (75)7/8/2003 11:12:06 PM
From: Ed Ajootian
   of 112
 
HORIZON: Early Leaders Emerge In Race To Build New US LNG Ports
(Copyright © 2003 Energy Intelligence Group, Inc.)
World Gas Intelligence Wednesday, July 2, 2003

The question these days seems to be not whether the US is a viable market for LNG but rather when, how, and from where more LNG can be delivered. Currently, around 20 proposals to enhance LNG receiving capacity through onshore, offshore, or Mexico-based terminals are in one stage or another of commercial or regulatory approval.

The US currently has about 1.8 billion cubic feet per day of receiving capacity, including a recent expansion of the Everett, Massachusetts, terminal. Upon the slated reopening of the Cove Point, Maryland, facility later this month, that should leap to 2.8 Bcf/d (WGI Jun.18,p1). Approved expansions of Lake Charles and Elba Island should bring the total for existing terminals up to a combined 4 Bcf/d. Since forecasts suggest that the US could be using 9 Bcf/d -- or nearly 70 million tons per year of LNG -- by 2010, a number of new facilities will likely be needed (WGI Oct.23,p5). But that number isn't as large as 20. Those that look to be good contenders to make the cut are mainly clustered along the Gulf Coast.

ChevronTexaco's Port Pelican application has been making its way through the US Coast Guard permitting process since late last year, with a decision expected by end-2003. Located offshore Louisiana about 50 miles south of Lake Charles, Port Pelican could start up as early as 2006, a point when new Atlantic Basin liquefaction facilities should be completed (WGI Apr.9,p4).

The Freeport LNG project on Quintana Island, southwest of Freeport, Texas, also looks promising for several reasons, starting with a blue-chip customer and a location in a heavily industrial and economically depressed area where any job-creating venture is likely to get solid local backing. Freeport shouldn't face regulatory impediments at the state level, and Federal Energy Regulatory Commission (FERC) approval is pending. Completion is set for 2007. Dow Chemical has provisionally agreed to bring 3.6 million tons/yr of LNG, or 500 million cubic feet per day of gas, into the facility from an unspecified source. Cheniere Energy came up with the Freeport project but has since sold a majority to small, privately held investment groups.

Cheniere has targeted two other sites: Sabine Pass, Louisiana, and Corpus Christi, Texas, each projected to have 2 Bcf/d of capacity, with completion targeted for 2007-08. At both sites, Cheniere has awarded a front-end engineering and design contract to Black and Veatch in anticipation of filing an application with the FERC in early 2004.

Exxon Mobil is looking at Sabine Pass, too, but on the Texas side of the border, about 80 miles east of Houston, for a possible 1 Bcf/d (7.7 million ton/yr) terminal (WGI Jun.25,p1). Exxon, which currently has no firm US import capacity, is evaluating other Gulf Coast locations, as well, including one in Louisiana. One reason for Exxon's relatively late indication of interest in US LNG was the regulatory environment. FERC's Hackberry decision changed that (WGI Jan.22,p1). Now Exxon can build its own terminal and not have to share it or worry about regulated tariffs if it does sell access to others.

Sempra's Cameron LNG project -- initiated by Dynegy -- to convert an unused LPG terminal at Hackberry, Louisiana, has preliminary FERC approval, and an environmental impact study is underway. A 2007 completion date is targeted. The company hasn't said whether the facility will be open-access. The location on Calcasieu Lake has a major drawback: potential shipping bottlenecks in the Lake Charles Channel. The existing Lake Charles terminal is further upstream.

Of three proposed LNG receiving terminals in the Bahamas, only two are active. The largest and apparently most promising is Tractebel's Calypso venture near Freeport, acquired from Enron last year. Output from the 830 MMcf/d complex would be shipped through a 96 mile pipeline to Florida. The other is AES' scheme to build a 550 MMcf/d facility on Ocean Cay that would be connected by a 65 mile pipeline to Florida. AES also would build a power plant in the Bahamas. Both have applications into the Bahamian government and into FERC for the pipeline access, and both are scheduling a 2006-07 startup (WGI Jun.4,p3). Given that a supply contract with end-user Florida Power & Light is a near necessity, both are unlikely to go through.

El Paso's Energy Bridge project may be up for sale, but its application is still wending its way through the US Coast Guard permitting process, giving it potential value to another company. Special tankers would have regasification equipment on board, eliminating the need for a conventional receiving terminal. Regasified LNG would be unloaded directly into a pipeline through a submerged docking buoy.

Another technological innovation would be use of salt caverns for storage. The US Energy Department recently endorsed a process developed by Houston-based Conversion Gas Imports that involves an innovative heat exchanger to allow direct injection of pressurized LNG or dense-phase vapor into salt caverns or pipelines. At a fraction of the cost, that would eliminate the need for both storage tanks and conventional regasification facilities (WGI May7,p8). Conversion Gas itself is participating in two projects, and its technology could be used in a third sponsored by Freeport McMoRan (Natural Gas Week Jun.23,p6).

Also enticing is Canadian refiner Irving Oil's recently resurrected plan for an LNG regasification in New Brunswick, Canada, to target New England through an expansion of the existing Maritimes and Northeast Pipeline.

By Barbara Shook in Houston and Madeline Jowdy in New York

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To: Ed Ajootian who wrote (78)8/8/2003 11:35:58 AM
From: Ed Ajootian
   of 112
 
Cheniere Energy Makes Progress on Gulf Coast LNG Projects

HOUSTON--August 8, 2003--Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Cheniere Energy Incorporated (AMEX:LNG) (Houston Texas) recently awarded the Front End Engineering and Design (FEED) contracts for two of its four planned LNG receiving and regasification terminals planned for the Gulf Coast.

Cheniere awarded Black & Veatch Pritchard Incorporated (Overland Park, Kansas) the FEED contracts for its Sabine Pass, Louisiana (PEC 020051337) and Corpus Christi, Texas (PEC 01008551) LNG terminal sites. The FEED for both sites will be completed by September of 2003 and Cheniere Energy plans to file permits with the FERC in January 2004 for these two facilities.

The other members of the of the project team assembled by Cheniere are Project Technical Liaison Associates Incorporated (Spring, Texas) for the safety & permitting issues, Ecology and Environment Incorporated (AMEX:EEI) (Lancaster, New York) for environmental assessment and Shiner Moseley and Associates Incorporated (Corpus Christi, Texas) for marine engineering.

These two sites, combined with Cheniere Energy's partnership investment in Freeport LNG Development LP for their planned Freeport LNG terminal (PEC 01008554), will give the company a very strong presence in the Gulf Coast U.S. region. Deepwater access, available pipeline capacity and local demand for natural gas make these locations very appealing. Cheniere Energy hopes to be importing 5-6 Bcf/d of natural gas through its planned LNG receiving terminals by 2007.

North American is witnessing an increase in LNG project development as energy developers seek solutions to our growing energy needs. See related archived news article*: North American LNG Project Planning Exceeds $11 Billion as ExxonMobil Gas & Power Joins the Foray for additional information on the growing LNG industry.

*Access to Industrialinfo.com's archive of over 2,100 news articles is available to Premium News Subscribers. Click Premium News for more details.

Industrialinfo.com (IIR) is the leading provider of global industrial market research. We specialize in helping companies develop information solutions to maximize their sales and marketing efforts. For more information on trends and upcoming construction activities in the terminals industry as well as other industrial sectors send inquiries to petroleumterminalsgroup@industrialinfo.com or visit us at www.industrialinfo.com.

********************************************************

Too bad this thread died, I'll just use it to store articles I guess.

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To: Ed Ajootian who wrote (79)8/8/2003 1:49:47 PM
From: DELT1970
   of 112
 
I'm still here, Ed, and looking for plays every day. I'm currently holding UNT, XEC, MHR, EP, WMB, USEG, IFNY and TKE and OLY in Canada. I like the FTO/HOC merger, also.

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To: DELT1970 who wrote (80)8/11/2003 6:33:07 AM
From: Ed Ajootian
   of 112
 
Delt, Great to see you're still hangin'.

Infinity brings back memories, I had bought them several times previously, the last time with good results. Haven't kept them on the radar screen for some reason. Do you still like them?

UNT seems intriguing, being one of the few that is trying to combine both drilling and E&P in one company. It makes a lotta sense tax-wise.

I own a small amount of XEC, it has been an enigma. Hopefully this stepped up drilling pace will get folks more excited about the stock.

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To: Ed Ajootian who wrote (79)8/11/2003 10:43:35 AM
From: Eva
   of 112
 
Hi Ed

I am a Lurker, your articles are not in vain

Thanks
Eva

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To: Ed Ajootian who wrote (79)8/11/2003 1:44:29 PM
From: David Weis
   of 112
 
Hi Ed.

I'm new to this thread.......and I appreciate your article on LNG. The reason why I'm here is several months ago I learned of a possible Natural Gas shortage this winter.

For disclosure purposes, I own PVX

Thanks,

David

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To: Ed Ajootian who wrote (79)8/12/2003 9:07:38 AM
From: John Carragher
   of 112
 
hey, I come back here for every post... holding upl xto, mhr crk.... why> there were on raymond james list of several.. and seemed at the time the best for my money.. I also wanted to buy a mix of stocks. now to wait until late oct to see if they move... thanks for the posts. John

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To: Ed Ajootian who started this subject8/12/2003 7:54:40 PM
From: David Michaud
   of 112
 
Powermax Energy Inc. (PWR:TSX-V)

QUICK FACTS SHEET

HIGHLIGHTS:

* recent drilling success has led to a 40% increase in production to 350 boepd
* 2003 first quarter cash flow of $632,556 or $0.075 per share ($0.30 annualized)
* expected 2003 cash flow of $2.0 to $2.5 million or $0.25 to $0.30 per share (trading at only 2.0 to 2.5 times)
* estimated net asset value of $1.10 to $1.30 per share (trading at 0.48 to 0.68 times)
* debt free (debt net of working capital position as at March 31, 2003)

Powermax is an emerging company engaged in the exploration, development, and production of petroleum and natural gas in western Canada. The Company has demonstrated tremendous growth in the past 6 months, going from a corporation burdened with debt and generating negative cash flow and earnings, to a company with no debt, significant financial growth, and numerous projects.

Powermax has recently tied-in a number of new wells raising net production to about 350 barrels of oil equivalent per day. Approximately 70% of current production is comprised of natural gas. The Company plans to drill up to 6 wells over the balance of 2003, and to exit this year with production of over 500 boepd.

At its core area of Galahad, Powermax has identified 3 to 6 multi-zone development drilling locations. Another 3 wells in the area are categorized as ideal recompletion candidates, which provide the potential for incremental production.

The Company’s newly acquired Peace River Arch property has the potential for significant oil and natural gas additions and has the added benefit of accessibility to infrastructure. The area offers numerous shallow drilling opportunities. In particular, a 50% interest well is expected to be drilled in 2003, targeting a zone that blew out in the early 1900’s at rates approaching 10 mmcf/d of natural gas.

Powermax has entered into an agreement with Western Petrochemicals Corp. to explore and develop a shale bed methane gas play in the Pasquia Hills region of eastern Saskatchewan. Powermax can earn a 100% working interest in 188,000 acres in exchange for completing a $625,000 work program over a period of 30 months. In addition to completing the work obligations, the corporation made an initial payment of $50,000, and will issue 50,000 common shares. Powermax also recently acquired exploration permits covering a contiguous 106,000 acre parcel of land in the Moose Jaw region of Saskatchewan which is prospective for natural gas.

Production and Projects…

Galahad, Alberta
# multiple drilling locations
# 3 wells planned for 2003
# 93% average working interest
# gas targets in the Ellerslie and Glauconite zones
# immediate potential for production through the Powermax operated pipeline system

Eagle Butte, Alberta
# exploration project surrounded by production
# seismic and geological work to delineate property underway
# 2004 project development proposed
# 100% interest for oil targets in Sawtooth, Mannville, gas targets in Bow Island and 2nd White Secs zones
# potential for phased development in 2004-2005

Exploration Projects…

Peace River/Cadotte, Alberta
# exploration project backed by seismic and geology
# one well planned for 2003
# 50% working interest
# shallow gas prospects
# nearby infrastructure including services, roads, and pipelines
# potential for commercial development in 2004

Saskatchewan
# 188,000 acres prospective for shale gas
# 106,000 acres of historical gas
# preliminary geological and seismic work for 2003-2004
# historical gas shows to be delineated
# 50% working interest
# future development potential

FINANCIAL AND OPERATIONAL SUMMARY

BALANCE SHEET
(As at March 31, 2003)
Current Assets $ 1,352,662
Total Assets 4,240,789
Current Liabilities 1,349,881
Long-Term Debt nil
Shareholders' Equity 2,775,914

FINANCIAL & PRODUCTION
3 months ended March 31 Year ended December 31
2003 2002 2002 2001
FINANCIAL
Revenues $ 1,000,794 $ 408,632 $ 2,279,978 $ 2,033,193
Cash Flow 632,556 (13,742) 924,907 693,625
per share 0.075 (0.002) 0.143 0.114
Net Income 430,403 (177,742) 64,675 146,103
per share 0.051 (0.028) 0.010 0.024
PRODUCTION
Natural Gas (mcf/d) 1,600 636 998 719
Oil & NGLs (bpd) 73 124 103 81
Boepd (6:1) 334 229 270 201

SHARES OUTSTANDING (As at March 31, 2003)
Basic: 8,405,100 *
Fully-diluted: 11,402,900 *

* Investors should take note that the official number of common shares (9,722,300) is presently subject to revision. This total includes 1,047,200 shares which are subject to performance escrow. The position of Powermax is that the conditions for release of these shares were not satisfied and that the share certificate evidencing their issue should be cancelled. The Company is currently taking steps to effect this cancellation. In addition, 270,000 common shares purchased pursuant to an issuer bid are also subject to cancellation at this time.* management and insiders own approximately 38% of the total shares issued and outstanding

CONTACT INFORMATION:
Suite 1000, 330 - 5th Ave. SW, Calgary, AB, T2P 0L4
Phone: (403) 237-5535
Fax: (403) 264-3734
Email: kingma@powermaxenergy.net
Website: www.powermaxenergy.net
Contact: Johannes (Jo) Kingma

QIS CAPITAL COMMENTS:
Powermax Energy has come a long way in the past 12 months and now appears poised to show considerable growth and gain increased attention from the investment community. While the Company underwent some restructuring to reduce debt and streamline costs during the first half of 2002, new banking arrangements and the appointment of a professional staff have now positioned Powermax to exploit its vast potential. It should also be noted that the Company has an untapped $2.1 million line of credit as well as a $1 million acquisition line of credit.

The first quarter of 2003 is the first real indication of the positive financial outlook for Powermax. Annualized first quarter cash flow is approximately $0.30 per share based on a production base of about 330 boepd. The Company anticipates this production to continue to increase with a year-end target rate of 500 boepd. Ignoring this potential production increase, Powermax’s shares are trading at just over 2 times annualized cash flow, at a significant discount to net asset value, and the Company is debt free. This enviable financial position should enable Powermax to capitalize on its aggressive growth plans.

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To: Ed Ajootian who started this subject9/26/2003 8:01:35 PM
From: tom pope
   of 112
 
Ed, is there an index, other than yours, for E&P companies that are not of the behemoth rank? I'm looking for a proxy for a company like APC.
Thanks

Tom

EDIT. I guess that was a pretty dumb question. If there was such an index, you wouldn't have started this thread!

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To: tom pope who wrote (86)9/28/2003 1:14:39 PM
From: Ed Ajootian
   of 112
 
Tom, Actually there is an S&P index that appears to be what you're looking for, see its components listed at finance.yahoo.com^GSPOILP

As you can see it includes APC.

My portfolio on this thread needs to be adjusted for some stock splits, etc., but I have not had the time or inclination to deal with it. I oughtta try to do this by year-end just to see how the year really went.

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