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Gold/Mining/Energy : CDN. Oil/Gas Cos. - Shareholder Maximization -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (16)	3/19/2001 5:10:18 AM
From: CIMA	Respond to of 56

INVESTOREXPO Editorial: Dan Deadlock (wwi) / Christopher Gulka, CA CFA Publisher: Webmasters Worldwide Inc. (wwi) - www.investorexpo.com www.stockcult.com TABLE OF CONTENTS 1. Oil & Gas Stocks - CBS Marketwatch features the Canadian sector for strong growth 2. Integrated Production - our oil/gas service stock attempts aggressive takeover 3. Canadian Corporate Review - updates now available throughout the day On Saturday OPEC agreed to cut almost 1 million barrels of production from the system, or 4% of targeted output. Bad news for consumers but good news for the industry. As the balance sheets of these companies continue to strengthen dramatically we are presented with some decent opportunities. Many stocks in this sector are trading at 52wk highs but the valuations are no where near what we saw in the mid 90's when stocks traded at 2 to 3 times these value. As technology continues the meltdown one has to wonder what (if any) may be the next hot sector. The oil & gas stocks definitely have strong fundamentals and room for growth but whether we'll see a speculative phase is anyone's guess. Cash is king in this market but any good junior oil & gas stocks you can find trading at reasonable cashflow multiples (approx. 2 times annualized cashflow) remain good bets. cbs.marketwatch.com (excerpt below) "As many investors grope for a lifeline amid a morass of gutted chipmakers, computer companies, software developers, networking behemoths and Icarus-like Internet shares, tech stock analysts offer little more than excuses and a shrug of the shoulders. Many U.S.-based investment advisers and commentators are also eschewing stock picks in favor of money market funds, government bonds and cash." "Yet just north of the world's largest economy, Canadian petroleum companies, many of which trade on U.S. markets, generate healthy stock gains, propelled by booming commodity prices, a torrent of mergers and acquisitions and insatiable U.S. energy demand." "Canada's oil and gas stocks have quietly outpaced the world's benchmark stock indexes this year and last, and have assumed - for some prescient investors - the comforting mantle of safe haven investments with punch. What's more, these stocks are likely to continue their advance in the quarters to come. 2. Integrated Production (IPL:TSE $2.80) ------------------------------------------- Coverage Initiated: Dec 20/00 $2.35 www.ipsl.ca Still only moderate gains here but I believe the real value for this oil & gas service stock lies somewhere in the $5 to $7 range. Integrated has made close to 10 friendly acquisitions within this industry over the past year but last week announced their first attempt at a hostile takeover. The target is a service company on the Cdnx called Delaney Energy Services (dly) at a price of $1.05 which appears very fair. IPL raised $30 million at $2.60 several months ago with a Texas fund and is generating strong cashflow as their equipment runs at capacity. This cash position and borrowing ability enables IPL to get a bit more aggressive and demonstrate to shareholders they are prepared to build value through internal growth and "aggressive" external growth if need be. Last year we had 2 of our other oil service stocks we followed bought out and over time I believe IPL will end up in the same situation. As we expect energy prices to remain strong, we believe the value behind IPL's stock is substantially higher than where it currently trades and represents strong value at these levels for anyone with a mid to long term investment horizon. 3. Canadian Corporate Review -------------------------------- stockcult.com Thursday I started updating this section of the stockcult website. I review all the news releases issued by Canadian companies during the day and post a brief summary (updated roughly every hour) of any that may lead to short term trade opportunities or point us in the direction of a fundamentally strong company that may present good value with further research. I'm sticking with small to mid caps though. Friday probably saw 75 releases issued and only 5 that I felt were worth following up on and were posted to the site. We started following Liberty Oil/Gas (lbr:cdnx) on Feb 4th at $0.95 and are currently up approx. 40% on it. We'll start to see more companies in this sector issuing news soon and I'll keep an eye out for any decent ones trading at good multiples. There were a couple on Friday that may be worth looking into so I'll leave them up until late Sunday night. ______________________________________________________________________________ TERMS & CONDITIONS OF USE "By accepting this email, I acknowledge that neither the Investor Expo Newsletter (a division of Webmasters Worldwide Inc.), nor the Editors (Dan Deadlock & Christopher Gulka) give me investment advice or recommendations and they do not accept any responsibility to advise me on the suitability of any of my investment decisions or transactions. I acknowledge that I am fully responsible for the financial impact of my investment decisions and that these email reports are provided for INFORMATIONAL PURPOSES ONLY. I am also aware that they may hold a position in mentioned securities and may be active buyers or sellers at any given time." The above fore mentioned do not accept compensation of any kind from companies mentioned in the newsletter or on the website. The above fore mentioned also do not accept responsibility of any kind for Investor Expo reports which show up on public Bulletin Boards. It is impossible to control the flow of electronic information beyond the original source and anything read on a public board may have been modified from it's original state. If you DO NOT agree with these terms & conditions, immediately email info@investorexpo.com with REMOVE in the subject line and we will permanently remove you from the database.

To: Richard Saunders who wrote (16)	3/21/2001 10:06:56 AM
From: Richard Saunders	Respond to of 56

PARTIAL SALE - PES-tse Peak TSE SYMBOL: PES MARCH 21, 2001 - 09:54 EST Peak Energy Services Ltd. Announces Sale of Chimo Equipment Ltd. to Tuboscope Vetco Canada Inc. CALGARY, ALBERTA--Peak Energy Services Ltd. ("Peak") announces that it has sold the shares of it's wholly owned subsidiary, Chimo Equipment Ltd. ("Chimo") to Tuboscope Vetco Canada Inc. ("Tuboscope"), a Canadian subsidiary of Varco International, Inc. of Houston, Texas for total cash proceeds of $27,500,000 Cdn. Chimo is a leading provider of drilling instrumentation to the Canadian oil and gas industry. Peak believed that the value of its investment in Chimo was not being accurately reflected in its share price. With management's focus on creating shareholder value, the sale to Tuboscope was a means to monetize what Peak believed to be the intrinsic value of Chimo. The sale of Chimo will result in a gain on sale net of tax of approximately $12,000,000 ($0.36 basic per share). A portion of the proceeds from the sale of Chimo will be used to repay Peak's long-term debt. Long-term debt net of cash will be reduced to approximately $12 million. With the gain on sale, Peak's shareholders' equity increases to approximately $100 million ($3.00 per share). Due to the reduction in long-term debt, Peak's 2001 earnings estimates are only marginally affected by this transaction due to significantly lower interest costs. As a result of this sale, Peak is better positioned to continue with its consolidation strategy with undrawn lines of credit of $40 million and a strong working capital position and equity base. Peak continues to review several alternatives to enhance shareholder value including, but not limited to, the continued repurchase of its shares under its normal course issuer bid and potential mergers with or acquisitions of complementary businesses in the oil and gas services sector. Peak management will be holding a conference call at 12:00 noon MST on Thursday, March 22, 2001. Those interested in participating can do so by calling 1-877-323-2011 in Canada and the United States or 1-416-695-7896 from outside North America. Peak is a diversified energy services company providing oilfield rental equipment and related services to the petroleum industry in Western Canada. Peak's shares are listed on The Toronto Stock Exchange under the symbol "PES".