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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: Kerm Yerman who wrote (5654)	12/3/1998 8:49:00 PM
From: Alastair McIntosh	Read Replies (2) of 24927

Kerm, you posted: I don't know what to think of the price drop. It was just two weeks ago when they released their 3rd quarter report. The report was a downer for they were having production problems at West Stoddart and they were shut-in for 1/2 the 3rd quarter time period. Perhaps the problem has resurfaced and they face a very serious problem getting their capability in gas production back on stream. Your post implies that there the West Stoddard shut-in was due to technical problems. It is my understanding that REL had been discussing blending their operations with CNQ's operations at West Stoddard and had shut-in production until the issue was resolved. The purchase of certain assets from CNQ resolved the issue. I don't think that they currently have major production problems in West Stoddard. Nothing has surfaced yet as to account for the drop in Remington's share price. I agree that their debt/cash flow is much too high. However, the $20MM private placement and the $60MM debenture issue should reduce debt to something they can handle. At the end of September REL's net book value/share was $9.45. Seems to me a great buy at $4.50. Al (waiting for the long, cold winter!)

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