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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: grayhairs who wrote (13062)	12/5/2000 4:57:17 PM
From: MIRU	Read Replies (1) \| Respond to of 15703

Hello grayhairs - Yes I am talking magic and not pricing change. (Though the higher the better) But at any price where 5 mcf equals 1 bbl in value, like $6.00/mcf and $30/bbl, if you are converting mcfs into bbl at 5 to one you will get twice as many bbl as you will if you use the heretofore standard convention of 10 to one. Sorry, but I can't change the convention, or accounting guidelines, but merely point out that the real world ratio has shifted in favor of gas, and for all I know will stabilize where we are now. If so, several Canadian companies that convert gas into oil at 10 to 1 are undervalued based on last years numbers. I have no way of telling when or if accounting conventions will change, but it seems that oil/gas companies hung up on reporting production or reserves on a boe basis either ought to quit doing it or adjust the ratio to market reality.