Value Microcaps Motherboard

[Bobwins]

Marvelmeister2002 re TGA

Hi Marvel I haven't run any projections for 2005 or 6. I am not expecting much fireworks until they get the pipeline done in mid 2005 because any new wells won't add to the P&L until the pipeline is open.

I do expect some important things to happen in the next 6 months besides the pipeline construction. I expect they will make a decision on Harmel. That could be a very big decision for TGA. 90 wells at 500bpd each could change the outlook for this company in the short/medium term. It would require another pipeline project from An Naeem to Harmel to An Nagyah and would likely not be flowing until 2006 but would make use of the big ngas find at An Naeem by using the ngas to pressurize Harmel AND produce the ngas liquid distillate to upgrade the 22degree Harmel oil to 30 degree+ light sweet. They won't get top dollar for the blend but the production will be significant at 40-45K bpd total.

I expect they will hit something else in S-1. AN-14 and Malaki are two exploratory wells that are due to report soon. Both would represent new opportunities for TGA in S-1. An-14 would extend the AN field south and Malaki would be a new field of unknown size.

I am not going to even guess at exit production. If they fill up the pipeline to capacity of 80K bpd, that would be 20Kbpd for TGA just from S-1. I think that's very possible by 12/06 if Harmel is commercial. 12/05 is less likely to hit 10K because they would only have 6 months after the pipeline is done to hit 20K bpd X their 25% share.

TGA is all about long term positive results. I am content to wait for them to deliver because I trust the mgmt to make the right long term decisions. I think the energy situation will remain positive for exploration and production and TGA will deliver solid results, while maintaining fiscal balance.

Biggest problem I see ahead is how they develop S-1 full blast while exploring section 72, while getting ready for a Huge Egypt project. What if they hit a couple of An Nagyah sized fields in 72 plus S-1 extras plus Harmel? They will have to grow significantly to handle the three concurrently.

Can you tell I love this company and am bullish for the long run??? Bobwins