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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (9816)	1/31/2000 3:59:00 PM
From: Archie Meeties	Respond to of 79163

Could you suggest any gas plays that are not large integrated companies? Another way to play the ng story is through a ng trust. Some boast 10-12% yields currently and are somewhat mitigated from down turns in ng prices through the use of long term contracts and extensive hedges. Their exploration is limited to very low risk, generally long lived reserves. I have no investment interest or experience with them. I'm not a buyer in the oil services. I'm waiting for a correction in oil, and I think there is still some expectation built into the current valuations that will not be realized for at least 2 quarters. I mentioned SEI a while back. It's since moved away from where I thought it was undervalued. I'm also following PKD.

To: jeffbas who wrote (9816)	2/25/2000 12:31:00 AM
From: Archie Meeties	Read Replies (1) \| Respond to of 79163

Berkley Petroleum. T.BKP Canadian explorer founded by ex-Shell management in 1993. CEO is a geologist. Since inception has maintained profitability despite weak gas markets and depression level oil prices. Production breakdown. appx 60% gas, 40% liquids. Production growth currently focused on gas. Growth: Production growth/share in excess of 80% over past 5 years. Reserve growth appx 25%, with simultaneous growth in both proven and probable reserves. Reserves: 1.2 TCF proven + probable. Share price reflects uncertainty of California exploration, but discounts any possible success there. It also discounts recent success in the NWT with Chevron. By most estimates of 99 reserve additions, a share price of 9 Canadian is a discount to asset value. When year end reserves are published we'll know for certain. Today it closed at 8.85 cd. Regardless if the current share price discounts Ca, if California is dry the share price will suffer. A reasonable strategy would be to accumulate under 9, with plans to avg in over the next 3-4 months as the results from Ca. become clear. This will also mitigate any weakness from OPEC March production increases (if any).