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Re: iblong2 post# 721

Friday, 10/06/2006 3:01:16 AM

Friday, October 06, 2006 3:01:16 AM

Post# of 6708
iblong2/longs, interesting and probable thoughts. In a simple way that's good and not-as-good-news for we longs holding TRSI. My cost of driving may be going to go back up very soon BUT our little company is one of many O&Gasers who is NOT just buying leases, creating plans to drill, projecting the what-ifs of oil futures, etc. - its is producing oil NOW and that output is going to increase significantly even this month/quarter, not to mention continuing the increased production over the next 18+months. So as my gas cost goes up, the company's sells bbls for more $$ and we, hopefully get some return in an increasing pps!! I'm betting it will be worth more than the increase pump $$ I have to pay. Come-on - its the capitalistic way, right? I'm encouraged.

More seriously, now if and when others can only learn about us I'm sure my plan will prove out! I predict that by Christmas we will be doing over 150+, maybe as much as 200 bbls/day based on the projections/tests/history todate - do the math - that could be over $2M annual gross income for TRSI's share for just the four wells in Phase 1. I used conservative numbers IMO. This overall contract is roughly worth 6+X that number in types of activity (total of approx 25 wells) and expectations IMO and therefore we could now be talking $12M annual gross income.

Anybody think TRSI might be worth more than a $1.7M cap rate with this contract in place, being executed agressively, and $12M revenue potential? And anybody think there are not other irons in the fire that would add even more value?

At some point the fundamentals alone will be a driving force - low risk and near guaranteed results in a hot market - I'm glad I'm in early. Glad to see that others also see the possibilities. Thanks lowman for the excellent site to share on.

zagdad