Aspen Group Resources (ASRPF)

[Amaunet]

Aspen's focus is oil and natural gas properties in the Mid Continent Region in the US and Western Canada.

While Promax is focusing on natural gas in southeastern Alberta.

Approximately 70% of Aspen's and Endeavour's production is natural gas.

Jack said his goal is to have the company equally divided between oil and gas and between U.S. and Canadian production. I don't think that is Shell's goal and they have significant influence over Promax through their loan.

If we merge with Promax ninety percent of the new Company's initial production will be natural gas.

The natural gas storage surplus is a beast and OPEC under extremely difficult conditions has in my opinion been doing a commendable job of keeping oil prices as close to their desired band without hurting an economic recovery as possible.

Russia is the loose cannon in the oil picture.

Ninety percent natural gas production is not the direction in which JW was heading. After reading the following excerpt it is possible Shell will push for a company much more weighted toward natural gas than Jack would like and beyond the question of Promax's debt, this could have been a point of major contention in the negotiations.

I do not consider the "postponement" a bad idea at this point. IMO Am.

Drill Jack, can you dig it?

SHELL IS A PLAYER - Excerpt from: Merger Talk: Oil majors poised to bridge energy divide By Arindam Nag and Andrew Mitchell

Oil majors' power assets are still modest, but they are starting to flex their financial muscle in a bid to unite the oil, gas and power chain.

Royal Dutch/Shell has so far been the strongest player, through its 68 percent stake in Intergen, a global joint power generation venture with Bechtel.

Shell has been conspicuous recently in not concluding a major acquisition, but wants to boost its natural gas operations.

``We are very interested in strengthening our exploration and extraction activities, and especially our gas business. That can also include acquisitions,' Paul Skinner, chief executive of Shell's oil products business, said on Sunday.


Shell, in the last three years, has spent only $6 billion on acquisitions, much less than some rivals.

``Shell could look aggressively at increasing its U.S. natural gas presence. Shell's exposure to U.S. gas is the lowest among integrated (big oil companies),' Salomon Smith Barney said in a recent report.



References:

Fri Jun 29, 2001 Promax Closes $84 Million Dollar Credit Facility with Shell Capital Inc.

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