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

To: SofaSpud who wrote (7813)	11/25/2000 2:30:21 PM
From: VisionsOfSugarplums	Read Replies (1) \| Respond to of 24905

PSN: I thought their press release was laughable. "Post is an exploration company that creates value for its shareholders by finding new reserves. During the first 18 months of its deep drilling program, aimed to look for larger accumulations of oil and gas, Post was successful in finding "bread and butter" type reserves." IE/ they replaced declines by drilling in the Edmonton area, a development play. Minimal production additions came from other areas. Then again, there weren't really any production additions. 1st quarter production averaged 4,706 BOE/d and 3rd Qtr production averaged 4,795 BOE/d, an increase of 89 BOE/d (after spending $35 MM, I might add). The "icing on the cake prospect" statement makes it sound like this is a bonus to shareholders over and above all the other value that has been added during the year - yet where is this value? Production has been flat, plays have proved unsuccessful. PSN needs the Nisku play - it's what they've been trying, unsuccessfully so far, all year to accomplish with their deep program. Granted, deep programs are tough and take long to develop, but there still has to be some success. The re-entry hasn't been tested yet. The stock is so illiquid, they need a decent discovery (that actually shows up in the production numbers) and a new core area (76% of their production comes from Edmonton). Edmonton is only going to support their deep program for so long before shareholders are going to want to see some actual growth. There's next to nothing on the bid, so if a shareholder wants out, good luck. Richard - BTW, did you notice that PSN has 15,000 GJ/d hedged until Oct/2001 at $2.74/GJ? This represents roughly 60% of their natural gas production. I think there's better value out there, with better volume and more support on the stock. However, if a person likes to gamble on single plays (like some of the ELH stocks), then maybe the Brazeau well will do it for them. JMO. Regards, t.

To: SofaSpud who wrote (7813)	1/22/2001 9:51:54 PM
From: VisionsOfSugarplums	Read Replies (2) \| Respond to of 24905

PSN press release on Brazeau test: fin-info.com Post Energy Updates Brazeau Activity Calgary, Alberta -- Post Energy Corporation is pleased to announce that an independent evaluation of its Brazeau discovery has been completed. The 7-29-47-11W5M well is in the Brazeau River Nisku "T" pool. The well was flow tested at a stabilized rate of 3.9 mmcf/d of raw gas and 637 bbls/d of natural gas liquids over a five-day period to a nearby plant. This production rate was obtained with very little drawdown. The sandface AOF is calculated to be 33.6 mmcf/d of raw gas and 5,488 bbls/d of natural gas liquids. Approximately 870 mmcf of natural gas has been produced from the pool to date. This production allows for accurate estimating of pool reserves. Gilbert Laustsen and Jung Associates Ltd., an independent engineering firm, has estimated proved non producing reserves of 30 bcf of wet gas in place. The value of these reserves at a before tax net present value discounted at 10% is $38.8 million dollars. The 7-29 well is predicted to recover these reserves, with no further wells required in the pool. Post is currently investigating processing alternatives for the gas. Post has three additional Nisku prospects in the Brazeau area. The next location is planned to be spud in February 2001. This location is targeting a pool similar to the Brazeau River Nisku "T" pool. Drilling time is 6-8 weeks from spud to rig release. Further drilling will follow depending on surface access due to spring break-up. For further information contact, Timothy T. Hunt, President and CEO Post Energy Corporation Telephone: (403) 262-1295 Fax: (403) 262-1995 Regards, t.