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To: chowder who wrote (85445)	1/26/2001 3:34:17 PM
From: stevedhu	Respond to of 95453

PQUE moving up a little on 4 X Avg. Vol. and TMR has a lot of buyers. Steve

To: chowder who wrote (85445)	1/26/2001 6:15:02 PM
From: Big Dog	Respond to of 95453

From John S. Herold, Inc. DON’T BELIEVE THE SEC VALUES Reserve valuation standards mandated by the SEC will result in absurd present worth calculations this year. The Henry Hub spot price was an unparalleled $10.50/MMBtu on 12/31. Not only must the high year-end quote be used as a fixed standard for future revenue but undeveloped reserves could be booked that are only commercial at anomalously high price levels. We expect that most seasoned CEOs will avoid the temptation to recognize reserves this year that may need to be reversed out in twelve months if spot prices slump. Barrett Resources (BRR-$47.44) chose to show a supplemental calculation in its reserve report that points out their price sensitivity. Using its SEC-mandated price leads to a PV10 calculation of $5.25 billion in reserve value, or more than $3.80/Mcfe. That’s a whopping five times what the same type of reserves were worth a year ago, which of course makes no sense. But it is the law. In an attempt to be realistic, BRR gave an alternate PV10 figure based on $3.90/Mcf gas, coming up with a value of $2.2 billion. What a range – the $3 billion dollar discrepancy amounts to $93 per Barrett share.