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

To: Craig C who wrote (7894)	1/26/2001 12:29:09 AM
From: Richard Saunders	Read Replies (2) \| Respond to of 24910

THE CURRENT LIST - 13 Possible Takeover Situations. Here's an online link to a list I scratched out re: some of the current names that seem to be source of some takeover mumbles. blox.com The site is an online calculator where I've listed: Yahoo symbol - (that's what the calculator uses for delayed quotes). Company Name Posted - refers to date when this half-baked idea started & when noted here on Silicon Investor Cdn. Oil thread. Delay Quote - note that the quote for Compton (CMT-tse) looked goofy, make sure to verify. % Change - Price change from the Posted price. Misc. Comments - I've tried to reference the SI date & message number on the cdn. oil thread or other source who mentioned the possible takeover candidate name. There are also 3 links including one to an article that mentions Royal Energy Fund's Gordon Zive who tossed up 4 possible names. The article is pasted below. The other two links are to some general oil&gas references -- yahoo business full coverage for oil & gas and the other is a link to WTRG Economics which also provides some useful info. This is the first attempt at this list & unsure at the moment if/when I'll update it. If there are any other possible takeover candidates/rumours (Anadarko & CNQ?) I may also try and put them into the calculator. Hope the thing is "interesting" if not useful.......... **************** Pro Picks: Royal Energy's Gordon Zive Drills for Deals in Canada's Takeover-Rich Oil Patch** PRO PICKS Toronto, ONT, January 23 /SHfn/ -- Gordon Zive is watching a lot of money leave the oil sector right now, and he can't quite understand why. Zive, who managed the $280-million Royal Energy Fund to a 40% return in 2000, thinks there is still good money to be made in energy stocks. He offers StockHouse readers four names worth exploring. Zive says energy funds like his have seen money going out the door for several months. "There has been a lot of flow out of energy stocks into the high-tech sector, especially after those tech stocks were beaten down," he says. "I guess people have short memories, and they've been plowing back into that group. This past year, our fund generated a rate of return of 40%. I thought that was pretty good. But despite all that, my reward has been redemptions, and constant redemptions," Zive says. Nonetheless, Zive is optimistic about the oil and gas sector. He thinks OPEC, the oil cartel that to a large extent controls the price of crude, is determined to keep oil prices in at least the high US$20 range, and that's good news for producers. On the natural gas side, he expects high demand and constricted supply to keep prices high as well. "We believe there's a real opportunity to make some money right now. We believe now is a good entry point for people who don't have any exposure to energy stocks," Zive says. He picks four stocks for StockHouse he thinks are worth watching. "There has been a lot of flow out of energy stocks into the high-tech sector", Zive says. CANADIAN NATURAL RESOURCES LTD. [T.CNQ] Zive says the real surprise in the oil sector will be the continuing high price of crude. He doesn't agree with those investors who think it will take a tumble, and he thinks companies like Canadian Natural Resources will benefit. A wide differential between the prices of light and heavy crude has helped beat down the price of this stock, he says, and when that gap closes, the stock's price should rise. "I think the opportunities are in the more oily names, where really good valuations exist." "With differentials narrowing, there's a real opportunity for people to pick up some cheap stocks right now." BAYTEX ENERGY [T.BTE] This is another company with a stock that's suffered because of the difference between the price for light oil and the price for heavy crude. Zive says it's due to rebound if and when the gap narrows. NEXEN INC. [T.NXY] Nexen, formerly Canadian Occidental Petroleum, is one of the Royal Energy Fund`s top holdings. Like the other names, it has a lot of exposure to heavy crude and will reap rewards if the price differential closes. "This stock is trading at a huge discount to its net asset value," Zive says. GULF CANADA CANADA RESOURCES LTD. [T.GOU] This is another company with a lot of heavy oil. It's also been the subject of recent rumours that say Talisman Energy [T.TLM] is ready to take it over. Zive says the deal would make sense because the two both have exposure to North Sea oil and are involved in joint ventures in Indonesia. "There are a lot of synergies between the two companies," he says. He considers Gulf stock cheap, and he thinks the company has put itself in good financial shape. Now is a good entry point for people who don't have any exposure to energy stocks," Zive says. As he predicted in the fall, takeover fever continues in Canada's oil and gas sector, and Zive sees no reason to think it will end any time soon. He names Compton Petroleum [T.CMT], Cypress Energy [T.CYZ], Genesis Exploration [T.GEX] and Velvet Exploration [T.VLV] as four junior companies worth watching for takeover activity. "All of those juniors that have natural gas exposure are probably in the sights of any number of bigger companies out there, both larger domestic producers and a whole host of larger U.S. companies who are excited about the prospects for natural gas in Western Canada," he says. Zive also thinks the end of winter will do little to dampen the demand for energy, as it traditionally does, and he sees oil and gas prices staying high right through the winter of 2001 to 2002. He expects storage volumes to be 50% lower than usual come the spring, and suppliers will have to restore those volumes in preparation for the coming cold season. "It's going to be extremely difficult for that to happen," he says. "It's going to be another difficult heating season for 2001/2002 unless there's a supply response that comes out of left field that nobody's talking about."