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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: David Culver who wrote (377)	6/13/2000 4:50:00 PM
From: Scott Mc	Respond to of 11633

The only thing I wonder re MXT, is whether or not to add to my position, I bought with the intention to hold for 16 months, when I think it will trade at $9+, Scott

To: David Culver who wrote (377)	6/13/2000 7:54:00 PM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

MXT has about 75% of its production hedged at a maximum price of around $26.00 until the middle of 2001; they're also hedged the other way at a minimum of around $20.00. Therefore the recent increases in oil prices won't dramatically affect their bottom line. What the hedging does mean is that their present performance level is pretty well guaranteed for another year. I wouldn't be surprised to see them hedge the other 25% and also go out for another 6 months to the end of 2001. That's why I think their close to a sure thing. The only possible concern would be if their production fell off dramatically for some reason. Production has been slipping marginally for the last year, but this is mainly due to the fact (as I understand it) that they're a "stripper" type producer. They need therefore to be constantly working over their wells, and because of their dire financial situation they weren't able to do this. Shouldn't be a problem anymore. I'm also trying to determine how large a position to take here. Certainly won't be selling for the next 6-9 months. Regards