MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, FEBRUARY 16,1998 (3)
INDEXES
The Toronto Stock Exchange 300 Composite Index gained 0.2% or 13.15 to 6985.16.
In comparison, the Oil & Gas Index Composite Index gained 0.5% or 34.09 to 6373.38. Among the sub-components, the Integrated Oils gained 0.1% or 7.06 to 8913.17. The Oil & Gas Producers gained 0.5% or 27.72 to 5558.78. The Oil & Gas Services group climbed 2.6% or 2816.28.
INDEX CHARTS
TSE 300.......... canoe.quote.com
O&G Composite. chart.canada-stockwatch.com
Integrated Oil's.... chart.canada-stockwatch.com
O&G Producers.. chart.canada-stockwatch.com
O&G Services..... chart.canada-stockwatch.com
NEW PHLX OIL SERVICE SECTOR
bigcharts.com.
lonestar.texas.net
HOT STOCKS
The Oil & Gas drilling related companies were in the forefront yesterday. Ensign Resource Services (ESI) gained $1.80 to $31.05 and Precision Drilling (PD) $0.95 to $26.30. Dreco Energy Services (DEY/TSE) fell $1.60 to 42.00 and Akita Drilling (AKT.A/TSE) $0.30 to $10.40.
Shares in Seven Seas Petroleum (SVS.U/TSE) continued to climb rapidly, gaining $3.00 to $28.00. As reported throughout last week, the company successfully completed drilling operations on the Tres Pasos No. 2-E well, the seventh well drilled on the Emerald Mountain project in Colombia, South America. Shares gained $8.00 lat week on the news.
Renata Resources (RTA/TSE) was the most active traded issue on the TSE. Shares gained $0.01 to $1.35 on volume of 1.5 million shares. There was no news.
Pinnacle Resources (PNN/TSE) consecutive million share trading days came to a halt on a lackluster trading day. The company still made the most active list, trading 577,000 shares. Shares fell $0.20 to $13.65.
MOST ACTIVES
Kerm's Top 21 - Spec 15 - Serv 9 Companies are in bold print.
Renata Resources, Amber Energy, Pinnacle Resources, Westfort Energy, Gulf Canada Resources, Alberta Energy, Ranger Oil, Petro-Canada, Northstar Energy, Berkley Petroleum, United Tri Star, Startech Energy, Rio Alto Exploration and and Seven Seas Petroleum were among the 50 most active traded issues on the TSE.
Seven Seas Petroleum gained $3.00 to $28.00, Renaissance Energy $0.60 to $28.45, Shell Canada A $0.60 to $23.40 and Talisman Energy $0.60 to $41.95.
Percentage gainers included Seven Seas Petroleum 12.0% to $28.00, Purcell Energy $10.0% to $1.10, Ram Petroleum 8.8% to $1.73, Startech Energy 4.9% to $7.50 and Place Resources 4.8% to $2.20.
On the downside, Pendaires Petroleum fell $0.40 to $8.60, Imperial Oil $0.35 to $83.70, Chieftain International $0.30 to $32.25 and Tarragon Oil & Gas $0.30 to $9.50.
Percentage losers included International Rochester, down 8.6%to $1.60, Bow Valley Energy 6.9% to $1.35, Black Sea Energy 5.8% to $1.45, Richland Petroleum 5.0% to $3.80, Zargon Oil & Gas 4.8% to $2.95, Barrington Petroleum 4.5% to $4.06, Pendaires Petroleum 4.4% to $8.60, Pan East Petroleum 4.2% to $1.58, Beau Canada Resources 3.9% to $2.45, TransGlobe Energy 3.8% to $1.75 and Oiltec Resources 3.7% to $2.60.
Ram Petroleum, Seven Seas Petroleum and Westfort Energy reached new 52-week highs.
There were no new 52-week lows.
Peak Energy was the only service sector issue listed among the 50 most active traded issues on the TSE.
Ensign Resource Services gained $1.80 to $31.05, Enerflex Systems $1.50 to $38.00, IPSCO $1.00 to $63.50, Precision Drilling $0.95 to $26.30, Canadian Fracmaster $0.90 to $20.00 and Shaw Industries B $0.75 to $44.75.
Percentage gainers ncluded Ensign Resource Services 6.2% to $31.05 and Canadian Fracmaster 4.7% to $20.00.
On the downside, Dreco Energy Services fell $1.60 to $42.00, Enertec Resource Services $0.75 to $8.00 and Akita Drilling $0.30 to $10.40.
Percentage losers included Enertec Resource Services 8.6% to $8.00 and Dreco Energy Services 3.7% to $42.00.
No new 52-week highs.
Anadime Corp. and Enertec Resource Services reached new 52-week lows.
Over on the Alberta Stock Exchange, HEGCO Canada, Scimitar Hydrocarbons, Bearcat Exploration, Red Sea Oil, Hampton Court, ICE Drilling, DeTECH, Stampede Oils, Green River Petroleum and Colt Energy were among the top 30 most active traded issues.
Hampton Court gained $0.20 to $2.40, HEGCO Canada $0.20 to $3.25, Doreal Energy $0.15 to $1.75, Belair Energy $0.11 to $0.50, Jett Investment $0.10 to $1.00 and BXL Energy $0.08 to $0.55.
Percentage gainers included Belair Energy 26.9% to $0.50, BXL Energy 17.0% to $0.55, Tessex Energy 15.0% to $0.46, Jett Investment 11.1% to $1.00, Doreal Energy 9.4% to $1.75 and Del Mar Energy 9.1% to $0.60.
On the downside, Solid Resources fell $0.45 to $6.55, Parkcrest Exploration $0.24 to $1.11, Grantham Resources $0.17 to $0.19, Golden Trend Petroleum $0.10 to $0.75, Meota Resources $0.10 to $1.15, Scarlet Exploration $0.10 to $1.15, Canop Worldwide $0.09 to $0.75, Sator Capital $0.09 to $0.60 and Scimitar Hydrocarbons $0.08 to $0.42.
Percentage losers included Grantham Resources 36.7% to $0.19, Monterey Energy 19.2% to $0.21, Parkcrest Exploration 17.8% to $1.11, Scimitar Hydrocarbons 16.0% to $0.42, Sator Corp. 13.0% to $0.60, Golden Trend Exploration 11.8% to $0.75, Canop Worldwide 10.7% to $0.75 and Fox Energy 10.0% to $0.45.
Hampton Court reached a new 52-week high. AC Energy, Enterprise Development and Scimitar Hydrocarbons reached a new 52-week low.
An excellent summary of most actives covering all four of the Canadian Stock Exchanges can be found at quote.yahoo.com
ANALYSTS - FUND MGR'S - BUY - HOLD SELL - MISC.
February 15,1998
Gordan Capital
Tarragon Oil and Gas Limited
(TN-T:$9.80) HOLD
Acquiring Unocal's Alberta and B.C. Assets for $308 Million
Tarragon will issue 21 million shares and $100 million of 3 year debentures to Unocal in return for virtually all of its Alberta and British Colombia assets. The transaction seems to exclude Unocal's assets in Saskatchewan.
As a result of the transaction, Unocal will hold 27% of Tarragon's stock on a fully diluted basis. Management expects to receive shareholder endorsement and close this transaction by April 15, 1998.
On a proven plus half probable basis, Tarragon is paying $6.09/boe for the 43.7 million boes being acquired -this is net of $42 million attributed to 365,000 net acres of undeveloped lands, seismic data and tax pools. The properties being acquired are principally located in west central Alberta (Kakwa, Kaybob, Sturgeon Lake and Virginia Hills) and the Peace River Arch (Red Earth and Slave). They exclude southwest Saskatchewan, where Unocal is a 50% partner with Pinnacle Resources on several properties.
In 1997, production from the acquired properties was 10,400 bbls/d of liquids (primarily light sweet crude) and 38 mmcf/d of gas. If calculated on a full year basis, this acquisition would reduce Tarragon heavy oil exposure to 15% of production, down from almost a third. On a pro forma basis, we are forecasting Tarragon's 1998 oil and liquids production to be 24,500 bbls/d (includes 8,000 bbls/d of heavy) and gas production of 215 mmcf/d.
The impact of this transaction on fully diluted CFPS is virtually flat. We are forecasting fully diluted CFPS of $2.60 in 1997, $2.3 in 1998 and $2.55 in 1999. We estimate 1998 year-end debt to forecast 1998 cash flow at 3.2X (includes the $100 million debenture as debt). We are maintaining our HOLD recommendation on Tarragon and our 12 month stock price target remains $10.50.
|
