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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (75439)	10/3/2000 2:06:19 PM
From: richard badauskas	Respond to of 95453

Does anyone know how to calculate pre-tax PV-10 value for U.S. listed oil companies. Am holding a position in GDP which has just increased reserves from 67.3 Bcfe to 90.7 Bcfe for $136.4M (using Dec 1999 values of $2.63 mcf and $25.16 bl). IF we use a very conservative value of $2.50 mcfe we get $226,750,000 and on 12.9M shares this is worth $17.57 per share!!! This might explain the sudden rush of financing into GDP. Hambrecht & Quist just pumped in $17M and Jefferies & Co. is selling 5M new shares. The new total number of shares will be 18.9M so each share has a gas/oil valuation of about $12.00 per share. The stock consistently has had no sellers so these buyers are surely looking for much higher values. My guess is that free cash flow will at least double over the next four quarters using an oil price of $30 bl and NG of $4.00 mcf. Anyone else following this puppy? The chart pattern looks like it wants to rip (even with the new share issues). My guess is that their Gulf Coast leases are coming up trumps. Last week added one new well at 2,300 mcf per day. Have about 35 holes planned over the next twelve months.