Friend / International Operators
International focused majors have had their shares beaten back for the reason you mention, as well as the fact that most are involved with dominant oil production and you know these companies are getting beaten down. Pacalta, Gulfstream, Seven Seas are but a few.
I won't hesitate to say - stay away from the smaller companies whose operations are on paper only, meaning very little or no cash flow with little cash on hand. And if they have debt, they are in real trouble. There are numerous companies in this situation.
I don't really identify the following company I'm going to mention to you as international, because operations are basically in the Gulf Of Mexico. But you should probably perform due diligence on Chieftain International, a company spun off by Alberta Energy quite a few years ago and their headquarters is in Edmonton. They are primarily into natural gas, have a lot of money in the bank and a good track record in reserve and production growth. I have always liked the company, but thought shares were rather expensive. There shares haven't been severely beaten back - but to the point where shares are at a reasonable price to begin accumulation.
I think a reasonable approach at this time would be review of those companies who have international exposure - but not entirely focused in that area. As example, Talisman Energy, Gulf Canada and Canadian Occidental. Another company on the smaller side is one of my favorites (been very good to me), Vermilion Resources. Although they have reduced their 1998 production forecast to the 8,500 bbl's/d level, shares priced at current levels are very attractive to me. They are operating in a safe haven country -- France.
I don't know of any single source that provides full coverage of the companies with focus on international operations. It would probably have to be a single project you undertake to list, review and provide analysis. In regards to the very small juniors in this area, usually you will find reviews and comments from the institutions that took them public or provided secondary offerings. Then, of course, there are the companies themselves. The problem with both is that the views are always slanted to benefit their objectives. One thing I've really noticed over the past few years is that these international type companies (plus Canadian Companies with focused operations in the U.S.) are really promoted and hyped - much, much more than companies with domestic operations. I usually never get into these type situations for the promoting is a red flag to me.
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