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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: Richard Saunders who wrote (6344)	4/29/1999 12:33:00 AM
From: mike smith	Read Replies (6) of 24892

Richard, in continuing our discussion of undervalued juniors which we got into on the "PEL" thread, I see that Crownjoule has run from $1.00 last Friday to $1.45 at day's end today. I still think there is upside to this stock as the Company is all gas and management has forecasted 1999 cash flow per share at $0.45 using a meager $2.20 per mcf gas price. That price appears extremely conservative when looking at current spot prices in the $2.65 per GJ ($2.80 per mcf) range and contract prices for winter 99 of >$3.00 per GJ and one-year contracts (commencing Nov 99) in the $2.80 per GJ range !!! The Company's debt is set to stay at 0.5 times cash flow which puts them in an excellent financial position. This stock has been undervalued for so long that it is nice to see it finally get noticed. Although Crownjoule has very little oil and NGL production it appears that people were unwilling to jump into it until oil prices rose and confidence in the junior sector was restored a bit. Its too bad when solid gas companies suffer when oil prices are down !! Have you got any gassy juniors you like that still appear to be undervalued ??? Mike

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