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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (3830)	8/2/1999 8:49:00 AM
From: STLMD	Read Replies (2) \| Respond to of 15703

Bob... I'm uncertain as to what your investment goal is here with this question. If it is to buy a long term hold leveraged in the oil and gas exploration of ELH and GSJVB and with other value added assets I would buy BKP. I believe it would be similar to buying an early Mobil or Shell Oil. Any drop to the 14.60 range prior to TD and I would play BKP. BKP most likely will be buying up the interests of the other juniors as this plays out and thus their percentage of these plays will grow as their share price grows. Will WML be a long term buy similar to BKP. I doubt it even with Slave Point when you consider the % interest that BKP has in California and the NW Territory as well as there already producing areas. So if your question is long term and safety.. my reply is BKP. If it is short term price escalation then I would pour more into PYR and KOB. JMHO... Stephen

To: Bearcatbob who wrote (3830)	8/2/1999 10:04:00 AM
From: Check	Read Replies (3) \| Respond to of 15703

Hi Bob, <<From what I can see the debt in relation to production numbers are similar to ELK and the current production is almost all gas and associated liquids.>> 1st Q (ended March '99)in CDN $ millions Cashflow Working capital + total debt WML 1.425 66.6 ELK 3.323 71.1 Hardly "similar". Since then, WML increased it's production to 3.2 MBOE by the end of April, but then they sold $13.7 MM of producing assets. The sale and the recent equity issue would have reduced their WC deficit and net debt to about $42.6, still much higher in relation to 1st Q CF than ELK. I expect to see much better CF numbers from ELK for the second Q as some 40 % of their production is oil. Their balance sheet should also improve with some minor dispositions and the recent issue of flow -throughs. They also have much greater reserves in place and some 2.2 MM fewer shares out on f/d basis. Given that the two companies have almost identical upside leverage at ELH, on the basis of that alone, there's no doubt in my mind as to which is the better pick. Have a good day.