============================: THU.FEB,000217 :============================
|10:18| Harken : Forward stmnt disclamer : Why O&G idustries | Exploration
 low . Non Opec reserves in down turns .  Opec production down . End of Era .
 Demand & Supply estimate have both been off .  Going to  JIT inventory
  price .
 Acq old fields &  exploration w Columbia , CostaRica .
 Acqd 2 US properties .  | Reduced gas reserves in Columbia .
 Resverve flat , NetPV $ up .
 30.4M$ working cap  . Low finding costs . | Revs  $20-25M |
  Price : right now |  $1
  Mkt cap 150M$ -  | Dry hole Cambuios |
 WTI small cap oil index back to $12 oil price .
 Columbia terrorism small risk .
 Operations : US : Four Corners - LA . |  3-D seismic old shelf
 Monitizing old 3-D explored sites w no additional potential .
Central America - source rock exploration . Quantity & character of organic
 matter & thermal matureity . 2nd largest basin after Persian Gulf .
 Low Development costs because large finds .
 exploration costs  $2 % brl .  Biggest in Americas since Prudhoe Bay .
 Royalties scaled to production . with no new discoveries , Columbia would
 become importer in 2005 .  Loss to terrorism .0006 .
 .25$ % brl security costs | looking at 6000 b % d vs 2800 in `98 .
 Alcaravan $0.5 % Boe .
 Costa Rica : Stable Gov . Harken first private exploration since ~ `75 .
|12:4| crash on bat change |  $2.65 net asset val % share . price $1 .
|13:2| John : Ambasitor not yet here . WBN CEO : TomWijahowski .
 504 2.5 yrs ago . 20 analysts by eoy . down to .35 now $1 .
 10SB this week . LP.org . |13:8| John Anounced me .
 Chuck Strain : CGX energy . Ambasidor here :
 Chuck & Mike : Columbia same potential as Venesuala . recently improve
  royalty structure . | Run into wall against  Former USSR & Columbia .
 Chuck : Westergaard not get into Inferential Analysis
|13:16| Ambassador from Columbia : Luis Alberto Moreno |13:19| Tek going .
 Reality v Perception . WDC everything moves about perception .
 Look @ Sectors :
  Electric Power : 43GW in `98 | Capacity 12GW .
  .15 mkt share Co up for privatization .
  Transmission grid .82 stake for sale .
  14 distribution cos tending to merge .
  7 player hav  .91 of mkt .
 PROPOFTOT  21 17 15 15 9 7 7  |>| 0.23 0.19 0.16 0.16 0.1 0.08 0.08
  r x .91 |>| 0.21 0.17 0.15 0.15 0.09 0.07 0.07
  Weather been real bad .
 ISA .75 of grid for sale .  $B to invest this decade .
 14 gov owned dist cos have  .4 of mkt .
Oil : | 37B bbls total potential .   .9 of co still unexplored .
 2  BBL discoveries in 15 yrs .  most  ~ 50MBl .
 Royalties  & taxes  & streait  | impact on NPV of investors .
 5 y depreciation .
 Royalties | .05 - .25 | <5KBPD - >600KBPD
   R factor |  changing  Ecpoeptrols Share :  .3 - .7  as 1 < R < 3
NaturalGas : 2 fields | well head prices still low . pipelines inefficient .
 privatize .
 .62 gas owned by State EcoGas .
Other Materials :  Steam Coal 2%3 all mineral export  .08 tot exports ,
 4th lagest international player .  Gold , Emeralds , Nickle only little
 explored .
 Need new mining code :  single etity for exploration & exploitation .
 Copy Chili & Argentina .  need congressional approval .
 Carbocol w Exxon : 3B Tons to 300 meters depth open pit coal .
  $18 % ton  cost .
|13:46| Chuck : Rebel problem : Insergency 40 yrs - dates to east west
 conflict . Map : size TX & CA together .  Insergents in frontier South .
 Cocaine not indiginous ( much ) - Peru & Bolivia .
 110 hectare in Peru moved to Columbia .
 Largest grp  15K men , total 25-30K vs Police  220k people .
 Money derived from protecting  .
 Offered peace to FARQ .
 " Investement "  ,  7.5 B $ gov relocation program .  1.5B$ from US .
|13:53| ? renegotiate older contracts ? no . add ons can be new contracts .
 | Cede center of country to FARQ(?) - truce ? .003 of land area - 100k people
 peace seems to be working .
|13:56| John Wrapping up .  Scakan award .

|14:16| Exploration Co . TBITDAX records in `98 `99 . Acq Large acrage 115k
 acers TX , 340K acres else where . Applying new tek .
 3D seizmic - 0 Bank debt . paying off 4.4M$ Jul `98 non-recourse mez in few
 mo . .18 interest .  Growing while others trying to survive .
 South West Tx Mavrick , Wilison basin .
 Strain & Paulson came in |
Homerun play : Glen Rose Reef play :  10 for 10 . | limit to 2M % day to
 keep from injury .
 40 ready to drill . no ProvedUnDeveloped on books .
 3M Private swiss equity last wk .
 400K$ developemt , 4M$ return
 Greorgetown -  3x return   |  2 wells not stable -
 Pearsall fractures HP gas .
 Interior Deep Jurassic basins .   120 sq mi 3D seizmic .
 Jerry Jones of Cowboys going to drill on TXCO - for .25 on 5M$ deep well .
 Jones BlueStar grp spending 18M on drilling , tot  105M$ this yr drilling .
 Bituminous Coal lies 100-1500 feet under TXCO . 3 core tests in `99 for $50k
 Now can be economic ? 5 tests in 2000 .
 Got out of Oil into gas because price cratered , but own Oil in N.Dakota .
 Expect Oil stabilize in mid 20$s .
 3D tells you where you should drill horizontally .  At point in Oil side
 as was 2 yrs ago .  Plan 20 wells in 2000 ,  10 last yr .
 Finding & Dev down to ~ .8$ %MBl .  Total assets  18.6M$
 Stock  ~ $2.5 - $ |  3  x 17.2 20 |>| 51.6 60   | M$ mkt cap | out , diluted
 Proved developed producing reserves .   500BCFE unrisked reserve potential .
 Keep company out of high risk . Partner |14:47| just canged fi
 now 10 of 10 hitting reefs , 30 - 40 more similar , some bigger .
|14:51| DenisClement & KerrySully Pres CGXX.U : Guyana Consession since Jun
 98 . 34M shares traded in 99 . Fresh Mike Strain report . 3.2M$ US in bank .
 Raised 5.4M$ private last yr , got mkt cap to  $40M .
 1.2BBl expected .   Guyana based on English Common Law .
 Fiscal return 2nd only to UK , ~ .6 |
 Maxus-Repsol has adject territory .
 Consortium shot 4000 km seixmic , then another 17k km  off Suriname .
 New Tek :  Source Kitchen (?) - migration - plumbing system .
 expect  .2 sucess rate in raw exploration .
 Solid Sentry Cable 20k foot cable off back of boat . mike every 25M . ,
  transducer every 6 mikes .
 Risk - is it oil  or gas .
 20ft sand - 600ft thick resevoir .   850MBl .
 produce  10K B%D + .
 AmplitudeVsOffset  Seismic amplitude increases off normal reflection .
 Direct indication of hydrocarbons . | Plan drill  July 1 w partner ?
 $7.8M to drill Eagle .   4 drillable targets .
  www.cgxenergy.com 
|15:38|  Rig rates still attractive .
 Off shore Angola , Nigeria  Terbidites . 1BBl finds .
 Equitorial Guinni  basin . |15:44|
|16:8| EdwardGoodLife :Mark Tyler 1752 : no democracy can exist > 200 yrs .
 bondage .  Harold Wilson drove | Western Separatist .
 Cargill 55B Revenues - 80K people . Private .
|16:15| raising Komono to ankle maybe knee . Westfort
 1 1.05  x 40  |>| 40 42 |  on board fo Genisis grp - 3 yrs .
 was indanger of loosing Pelahatchie MS field . 17100 ft - 2500 b%D . 14.8
 deg oil ran for 200 days . 15k l% sq inch . pulled up water hot salt water
 precipitated over few days .  gettin 800 b % day .
 Now that problem is to inject accompaning fresh water to dilute .
 100MBl rights to | Raised  3M$ before Xmas . drilled on day rate .
 25 oil zones , 14 potential .  Drill stem stuck at total depth .
 Got hi presure @ 100 ft earlier than Shell .
 Proved   6.5MBl on 1 pipe .
 Stock went thundering down .  Got small amnt of production going .
 Clois Talbot Drilling replacing Neighbos . Paterson drilling partially
 for royalties .   3 late autum .  120 200 B%D production .
 No debt execept Office building .  No $$ of any significance .
 Can drill 14 - 19 wells on property .
 Cost for drilling shallow  $750k .
 Need 4M$ to drill 17000ft . huge  pressure differentials .
 Gas & Sulfer , CO2 .
 Also 2 smaller fields .
 On Toronto . now logical to come back to US . had to update auditing .
 Have sponsor for AMEX - 1 yr exemption - reqire 1.5$ | now US .75
 %3 owned by involved people . %3 Large private overseas investors .
 rest widely spread . Trade ~  150k shares % day .
 Nick : | .05  on 1$ of reserves .     1000 BpD worth  .25 $ cash flow .
?s : How get up to 1.5$ ? Buy .5M shares .  got up to  $3.6 .
 Done damnedest to not get into debt .
? hedge current production ? no  .  $10 was aberation last yr .
 3rd World overstating reserves for IMF money .
 Use going up exponentially .
 Cost of Oil out of ground :  $3 % b . production .
 Finacial Risk minimal -  Oil is there .   Paterson clearly believes can
 be paid out of production .
 H2S sour gas in some zones .
 Shell did have oil - still there |16:46|

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