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

To: Think4Yourself who wrote (82849)	12/27/2000 1:51:35 PM
From: que seria	Read Replies (1) \| Respond to of 95453

Don’t think that $10 is going to do it for BKP. Nice try though, to take advantage of Berkley's below-promised execution in 2000, coupled with numbers due to turn around beginning with 4Q00: From the 3Q00 report: Marketing hedging losses for the third quarter were $18.1 million, and $35.8 million for the nine-month period. The company’s hedging plan, put in place in 1999 to support heavy capital spending through the winter drilling season, has delayed Berkley’s participation in the commodity price rally. The lower priced gas hedge (89.5 mmcf/d @ $3.16/mcf AECO) expired on October 31, 2000. Commencing November 1, 2000, Berkley will realize a significantly improved corporate gas price. Oil prices will increase commencing January 1, 2001. Operating costs for the nine months ended September 30, 2000 were $4.63/boe compared to $4.78 boe in 1999. Operating costs per boe were $5.34 in the third quarter of 2000, compared to $4.90 per boe in the third quarter of 1999 mainly due to continuing fixed operating costs during periods of reduced production which resulted from a turnaround at the Fort Nelson gas plant. The company also experienced various 13th month adjustments on several non-operated properties during the period. Cash flow from operations was $122.3 million ($1.21 per share) compared to $66.0 million ($0.78 per share) in the first nine months of 1999, an 85 percent increase. Third quarter cash flow was $32.6 million, compared to $24.8 million in 1999. Third quarter cash flow in 2000 was affected by reduced production volumes and lower netbacks due to increased royalties and higher operating costs. Fourth quarter cash flow is expected to increase 40 to 50 percent from third quarter as a result of increased production volumes and improved operating netbacks. Net earnings of $25.2 million in the first nine months of 2000 were 124 percent higher than earnings of $11.2 million in the corresponding 1999 period. sedar.com and go to 11/17 press release: I'm in large on BKP, so take this FWIW, but even without a bid or further help from ELH (the California play tapping into what seems to be a very large reservoir of deep gas), the market would likely be pricing BKP at or above $10 next month in anticipation of the 4Q00 report and a return to short term numbers better reflecting the quality of long term execution.