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Gold/Mining/Energy : Sodra Petroleum

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To: Greywolf who wrote (33)	8/3/1998 7:01:00 PM
From: Greywolf	of 133

STEADY AS SHE GOES BEST ADVICE FOR INVESTORS By J. Brock (FINN) With the new information in the U.K. press about the falling price of crude and the resulting effect on oil company investment dollars, there is some balance in what is being reported. Recently there had been hype about œ7.5 million for each Falkland Islander and oil bonanza's etc. Indications were that the hype was only generated to increase the price of stocks in companies exploring for hydrocarbons in the North Falklands Basin. Those who knew what minor hydrocarbon indications were did not invest unwisely and refused to put all of their eggs in the Falklands basket. For the small time investor who wanted a brief flutter, the message was less than optimistic when they committed the classic sin of investing and bought the stock shares when the price was high, only to be tempted to sell them at a lower price. At the moment it seems as if investors are affected by the roller coaster movements of oil industry stocks. Nervous stomach attacks when new media stories talk about the falling price of oil per barrel. For approximately a year the price has been fluctuating downward. Attempts to raise the per barrel price earlier this year had an immediate effect, raising the price from approximately $10.00 to approximately $14.00. However, the price gradually fluctuated downwards again to around $12.00 plus or minus. The scenario makes it more difficult to justify exploring for oil in frontier areas like the Falklands. Psychologically I think it was unwise to have a surge in stock share prices so early in the exploration period as the resulting downward trends in the them only tended to disappoint investors, especially those first time ones who involved a lot of capital in the project. The majority of them invested their savings instead of taking advice from seasoned investors who know that frontier projects are very risky indeed. Naturally these investors have more to lose and their nervousness can send ripples through the whole market. Steady as she goes is the best advice if you don't want to leave your lunch on the ceiling when prices fall. The oil companies involved in exploring in the North Falklands Basin simply want to get on with their work and they feel that speculative hype either way is unnecessary excess baggage that they can do without. The investors need information that they can use in making wise decisions about their portfolios. Juanita Brock, the author of this piece is right in saying that speculation at an early juncture is stock negative. As far as the price of oil well who know's what will happen to that.

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