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

To: MIRU who wrote (13067)	12/5/2000 6:15:46 PM
From: grayhairs	Read Replies (1) \| Respond to of 15703

Hi again. <<If so, several Canadian companies that convert gas into oil at 10 to 1 are undervalued based on last years numbers.>> Well nostarch, what I fail to understand is how the conversion results in an "undervaluation". For example, how does the conversion impact "NAV" ?? How does it affect "Cash Flow" ?? How does it impact "Earnings" ?? The conversion factor impacts the computation of "boepd", a measure of production\throughput NOT a measure of "value". (Of course, it also affects those comparative yardsticks expressed as units per boepd, like operating costs). <<I have no way of telling when or if accounting conventions will change,....>> Oh, but there's the rub, isn't it ?? UNTIL the accounting conventions actually change the industry must follow them when reporting, n'est ce pas ?? But, that shouldn't matter to you and I. We can easily recalculate and fine tune the boepds using our own choice of conversion factor. We can even get more sophisticated and use appropriate conversions for Heavy Oil bbls, Synthetic Oil bbls, and NGL bbls. After all not all bbls were created equal !! <gg> Later, grayhairs