UPCOMING SILENT AUCTION OPPORTUNITIES
Trade Days - Every Tuesday in Houston, Texas

PABCO ENERGY, INC.
The Official Auctioning Company Of
Trade Day International Inc.

Trade Days is featuring the following: one $10,000,000 Mid-Continent Divestiture and one $125,000,000 offshore property.
All of the above divestments have minimum bids that are subject to seller accepting option bid.

Sellers! It's not too late. You still have time to include your prospects, large acreage blocks and producing leases in these upcoming forums. Listings can be entered by mail or fax. Don't delay. Sign up now for good placement.

Buyers! Don't miss out on these opportunities to meet with your peers in the industry and take advantage of these buying opportunities.

Weekly Luncheon Forums

Luncheons for AAA sponsors and potential sponsors occur every Tuesday in Houston at the Downtown Doubletree Hotel, Allen Center, In The Dover, and every Thursday in London at The Ritz Hotel, 150 Piccadilly. The luncheons begin at 11:00 a.m. local time in each location.

The luncheons provide the opportunity to meet with your peers and to bid on properties that were auctioned at Trade Days whose options were not exercised. The cost is $50 per person for no sponsors. There is no cost for sponsors. Reservations are required.
 

The Option

These silent auctions are an opportunity to buy, sell or trade the option to evaluate and research the property for up to six days. During those six days, the winning bidder has the exclusive right to buy the lease at a full price or a negotiated price with the seller.

In the six-day option period, the property can be examined by a geologist, a title search can be performed, a pumper can be contacted, and an on-site inspection can be performed. The option period can be extended by doubling the option price.

The seller has placed a minimum price on the property, but the buyer has the choice to negotiate with the seller on the purchase price, as part of a purchase an sale agreement executed by the Buyer and the Seller, with Trade Days International, Inc., as the agent.

If the option bidding exceeds 20% of the minimum price for the property, the auction converts to bidding on the property itself, and the property is sold at final auction. For example, if the bid option for a one-million dollar piece of property exceeds the 20% value of the property--$200,000--the property would be immediately re-auctioned for a final sale price.

Benefits for the Buyer

The option makes the evaluation process more cost-effective and timely for the buyer. This process eliminates the expensive advance due diligence that is wasted when a buyer is outbid on a chosen parcel. For example, the buyer may need to purchase expensive equipment, such as 3D seismic, to assess the property. The option will make this purchase decision more comfortable.

The concept of putting down a small amount of cash in order to optimize the opportunity to evaluate and make the purchase decision on the oil and gas property provides a new level of excellence in auction effectiveness, insuring minimal risk for the buyer. The option money goes toward the purchase price if the sale is made.

Benefits for the Seller

The seller also enjoys benefits of the option process. It is a great opportunity to get the property in front of more potential buyers. The seller has the option to set the minimum bid price. The tie-up period for the property is shortened. The seller must deal with fewer people before the sale, and with only one winning party. This will help reduce the risk of upsetting existing staff. Another advantage is that the seller can walk in the day of the sale and list the property, thus minimizing the cost of advertising fees and related expenses.
 

Every Tuesday in Houston, TX

Email: 103636.2203@compuserve.com