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  • TELOZ's Yield, Valuation Make It Worth a Good, Hard Look [View article]
    See my notes on 6/23, 6/27, and 7/3.

    TELOZ is the one that is bringing the auditors in, to verify numbers from the working partners (Chevron...).

    Eugene Island 339 is a key point of interest. It is a major oil & gas platform, that is key to earnings & revenue. Our 1/2 priced dividend is mainly due to Eugene. Keep focused on what is happening at Eugene ( a key major factor ) in order to guess the future of TELOZ.

    From the 10-Q for quarter ending in March 2008 (see www.sec.gov/Archives/e... ) ... It says...

    Liquidity and Capital Resources - 10-Q Qtr Ending March 2008

    Chevron has informed the Trustee that Chevron had budgeted approximately $14.7 million, net to the Trust's interest, in capital expenditures during 2008 associated with Eugene Island 339 relating to side track drilling resulting from existing casing damage and a related delineation drilling project. Chevron has recently informed the Trustee that the start date for the side track drilling project is now in September 2008, with completion thereof expected in October 2008. The start date for the delineation project is now November 2008, with completion thereof expected in December 2008.

    Have not heard of new dates for this delineation project.

    STRATEGY

    IMHO, let the dust settle, now have 2.5 months before the next quarterly dividend. I plan on sitting on the sideline, waiting for TELOZ to bottom out. If it hits $15 per share, I will start buying at it. which is a 14.66% dividend at the current 55 cents per quarter. If it goes lower than 15, I will be buying more.

    It "possibly" could be end of 2008 or early 2009 before we see the dividend increase close to $1.00, if there is much work done on Eugene Island. This is the item to research and analyze.

    I suspect that we will continue to see the high fluctation in the stock price, near each quarterly dividend, to continue that pattern, but adjusted to the new dividend and respective percentages.

    Hope this helps!! If you have insights on Eugene Island or other TELOZ issues - feel free to share them.
    Jul 05 10:30 am |Rating: 0 0
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