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Gold/Mining/Energy : Fox Energy Corp. - FEC on ASE -- Ignore unavailable to you. Want to Upgrade?

To: CIMA who wrote (16)	12/3/1999 10:25:00 PM
From: john	Read Replies (1) \| Respond to of 54

CONCLUSION The recent merger with Petrohawk has positioned Fox for substantial improvement in financial and operating performance. Based on commodity prices of US$18 per barrel of oil and $3.08 per mcf of natural gas, management conservatively forecasts that the company will achieve cash flow of $3.3 million or $0.12 per share for 2000. Using a typical price to cash flow multiple of 4, Fox's shares should appreciate to the $0.48 level over the next 12 months. Management is actively evaluating a number of potential acquisitions and/or mergers which would offer share-holders additional upside if successfully completed. Proceeds from the recent sale and lease-back of a gas plant interest and the sale of a minor property enabled Fox to reduce its bank debt to $1,990,000 giving the company substantial debt capacity to finance further acquisitions, exploration, and development. I've been told that in real good economic times for the oil industry 8x is attainable at the high end which would mean a share price in the 90 cent range. Let the good times roll, maybe its oils turn After filling my car up today I'm beginning to think so.