Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RIK who wrote (7150)	2/25/2000 1:37:00 PM
From: Darwyn Petras	Respond to of 24921

NPP Earnings Out Company seem to be making progress, however improvements in production are required to generate better cashflow. Proved finding and development costs at + $11.00 are high as well as cashflow to debt.Lots of potential that needs to be realized. Would be interested to hear the F2000 cashflow based on US $24.00 oil and Cdn $3.00 gas. What is this worth to someone else, who knows as there are lots of companies trading at 3X. Darwyn

To: RIK who wrote (7150)	3/11/2000 11:01:00 PM
From: RIK	Respond to of 24921

Friday 10 March 2000 Oilpatch junior calls it quits Newport seeks buyer as investors ignore struggling energy shares Stephen Ewart, Calgary Herald Management at Newport Petroleum Corp. is throwing in the towel in a move analysts predict will become a trend across the oilpatch. Newport -- a mid-sized producer whose strength is high risk, high impact natural gas prospects -- put itself on the market Thursday when it opened a data room for potential buyers. The company said it is fed up with a stock market that won't give proper value to energy companies. "The industry is changing," said Newport president Sid Dykstra. "This is just part of the cycle in the oilpatch where there is a flight to larger companies." Most analysts predict a significant round of consolidation is brewing -- especially among intermediate and junior producers. "The equity market is quite impatient with the oil and gas sector . . . and investors are in favour of a consolidation," said Bruce Fiell, a managing partner at Peters & Co., which has been hired by Newport to "maximize shareholder value." These problems come at a time when oil prices are at a 10-year high -- despite a 24-cent drop Thursday to $31.45 US per barrel on the New York Mercantile Exchange -- but most energy companies are unable to raise new equity. Investors are flocking to high-growth, high-tech stocks. In addition to oil, natural gas prices are equally as buoyant with the Alberta spot price down five cents Thursday to $3.47 Cdn per gigajoule. Newport shares gained nine cents on the Toronto Stock Exchange closing at $3.95 Thursday but are still well off their 52-week high of $6.60 last April. The company has a market capitalization of $351 million. Newport produced more than 32,000 barrels of oil equivalent a day in the fourth quarter of 1999. "There is nothing fundamentally wrong with Newport; we have a great suite of assets, we have a good balance sheet, we have good prospects for growth," said Dykstra. "It (move to maximize value) is a recognition the market doesn't recognize the value and we're going to unlock that value." Analysts expect it will be big producers that prosper in the new environment. Alberta Energy Co. Ltd., Canadian Hunter Exploration Ltd., Anderson Exploration Ltd., and Renaissance Energy Ltd. are among the larger companies looking at acquiring assets. As commodity prices pump corporate coffers full of cash, the list of potential buyers will grow. So far, a handful of small- and mid-sized producers, such as Newport and Merit Energy Ltd., have put themselves up for sale. Some analysts said timing could work in Newport's favour. "There may be an advantage to Newport coming out of the gate early," said Steve Calderwood at Salman Partners in Calgary. "There is a sense there are going to be a lot more companies putting themselves on the block this spring, so it's going to mean more competition." Calderwood added that investors have grown impatient with management at Newport for continuing to chase costly deep gas projects even though the company does not generate the cash flow to develop them quickly. "Newport has a bunch of big prospects that take time to develop and those projects may be better suited to a larger company," Dykstra conceded.