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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (6779)	8/28/1999 10:21:00 PM
From: VisionsOfSugarplums	Respond to of 24921

Good point. Given the current pricing scenario, reserves previously assessed uneconomical which are now economical will be included in the reserve figures (volumes & dollars). Reserve estimates are only as good as the pricing estimates (although obviously have other flaws). Watching the reserve continuities provided by companies may help to assess their price sensitivity (if they don't group pricing "revisions" as "additions"). Companies which have previously written off assets (under the ceiling test requirements) can't re-book them in the current year financial statements. And they wouldn't want to, in most cases. I agree with the your comments with respect to the financing machines - a lot of stock prices are currently at all time highs and/or 52 week highs. Oil prices don't typically get a whole bunch higher than this (looking at charts)and who knows where gas will end up. It would make sense to raise capital now - not sure how much risk the houses are willing to take (re bought deals) since we've come so far so fast. Article on Bloomberg re pricing was interesting, IMO: quote.bloomberg.com "Enjoy it while it's here...", LOL, exactly. The next while will be very interesting. I'll be curious to see the various hedging strategies adopted - expanded exploration programs are being driven by current prices, will they last and what sort of risk are companies taking on in the current period of optimism (debt, etc.). There's still room for volatility in the upcoming months, re weather, OPEC and impact/status of Asian recovery, Russia, etc. so I don't think all is rosy (although you wouldn't know it from some of the multiples out there), however thanks be for the improvement! Regards, t.