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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: Syncrude who wrote (6083)	2/24/1999 11:43:00 AM
From: VisionsOfSugarplums	Read Replies (1) of 24921

REL - agree that the break fee is hefty. I think that concern over reserve reports will be reinforced - apparently has been driving some drops in oil and gas stock prices lately. Does the REL price per boe establish some sort of valuation ratio to be used looking at other companies with debt? (Obviously, more factors involved in valuation). Makes you wonder. REL had a reserve report from Sproule dated October/98 that showed reserves (proven & 1/2 prob) at a 15% discount equal to approx. $6/share after $330 million debt. Four months later the value is $1.90 a share, 67% less? This came from their prospectus for the convertible debenture issue, which would have been signed off on by Sproule. I would expect some sort of fallout from this. Regards, t.

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