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

To: Claude Cormier who wrote (7633)	9/28/2000 11:54:55 AM
From: SofaSpud	Read Replies (1) \| Respond to of 24899

Claude / POU Debt is 1.8x cash flow. Stock was probably hurt by the AEUB decision to shut in gas production at Surmount (sp?), which was about 10% of POU's production. The regulator decided that heavy oil production there was more important, and that producing the gas cap would reduce heavy extraction. Compensation has yet to be decided on that one, but I think it is a safe bet that POU will indeed get reasonable compensation. Also, production growth has not been what was expected. Part of that is the above, part was wet weather preventing tie ins. But this issue should be a focus for your DD - I can't tell you that I know for sure how much was exogenous factors that merely affect timing, and how much was genuine exploration disappointments. I established the position to get a bit of upside from California, with the downside protection offered by an experienced management team and a well-established production base. Obviously it hasn't worked out exactly as I wanted, but then what ever does? IMO, at these levels POU is worth spending the research time on. I don't know of a solid junior that meets your 65% gas criterion. In the under 5,000 boe/d club, the gassiest are SRT, IOI, and SGY, but I've never done any work an any of them. One that I have followed (and presently own) is PSN, which is about 50% gas. There is talk about them being taken out; might be worth a look. Good luck.

To: Claude Cormier who wrote (7633)	9/28/2000 12:04:50 PM
From: stan_hughes	Read Replies (2) \| Respond to of 24899

Claude - Both Belair Energy (BEC-TSE) and Chain Energy (CSH-TSE) meet your criteria. I have owned both since the spring (I got into CSH Chain via the former AltaQuest and Arrival Energy) and view them as multi-year holds that will also present trading opportunities. BEC is probably the better company of the two and has a better-liked management team on the street, but CSH is relatively undiscovered and the price has yet to reflect the numbers they will put up in the next few quarters. Peters acquired quite a bit up to the 65 cent level a while back and then went into hibernation. CIBC has been a major buyer of BEC both before and after BEC's acquisition of the former Crown Joule (CJE-TSE), but the buying interest has started to spread around in the last six-eight weeks. Goepel makes the market FWIW. BTW I like the POU too but think it is suffering from BKP disease because of the unknowns concerning the capex levels required to successfully bring ELH on stream. Potential bottomless pits for cash make people nervous, even fund managers. IMO we will see some improvement when investors can see where, and when, that play is really going.