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

To: Cogito Ergo Sum who wrote (89000)	3/21/2001 1:43:54 PM
From: tommycanuck	Read Replies (1) \| Respond to of 95453

The trusts in Canada are currently paying huge returns on a monthly basis. The big question is how long can they keep up the production basis to produce the returns. The price received for the commodity will obviously trend up and down but the part of the business that makes everything work is the ability of the trust to produce oil and gas. To that end I think that ARC, Enerplus, Enermark and Primewest are the best bets in the Canadian Royalty Trust sector. The reasons are the long reserve life reported, the areas that they operate in and the greater % assets in NG. TRUST RESERVE LIFE % NG CASH YIELD ARC AET.un 13.7yrs 31% 19% ENERMARK EIF.un 13.4yrs 41% 21% ENERPLUS ERFg 17.5yrs 41% 20% PRIMEWEST PWI.un 9.1yrs 50% 26% El Paso recently purchased (or the majority of) the manager of the Enerplus and Enermark family of trusts. I believe that will bring a certain amount of organization and operational expertise. Primewest is active in areas where there is significant further gas potential from redevelopment of existing assets.I believe that the reserves will increase significantly on the go forward. FWIW Regards, TC

To: Cogito Ergo Sum who wrote (89000)	3/21/2001 1:49:10 PM
From: Tommaso	Respond to of 95453

I own more NCN (AMEX symbol)than I ought to, probably. I think it is more leveraged (they do run a big credit line) and aggressive than most trusts. If energy prices stay firm or rise, it ought to do better than most, but is more vulnerable to downturns. This vulnerability may already be reflected in the price. I am going to keep on holding it, though I am disappointed with its price performance. It sounds as if they are continually buying up new properties and expanding the size of the trust, as as you know they do pass on income at a rate that makes it yield close to 30% now. The best buy in a gas royalty trust right now is HGT. It just announced a huge monthly distribution--about 46 cents (US), meaning about a 3% yield for one month.