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

To: RIK who wrote (89907)	4/11/2001 12:08:00 PM
From: tommycanuck	Read Replies (2) \| Respond to of 95453

Do yourself a favor and check out the historical numbers presented by Petromet rather than the wide sweeping numbers thrown out in a conference call. In a Feb 8 filing (yearend reporting the company estimated full year average production for 2001 of 87mmcf/day. They also indicated that if the forward contract pricing for NG is achieved then the cash flow for 2001 will be $170.6 million CDN or 3.28 per share. Granted that TLM is going to execute that hedge but I still am not able to compute a two year payout. They also made the comment that they exceeded their capital budget by 75% during 2000 which would indicate to me that there is a significant amount of new production coming on line which when combined with the 2001 company estimated average production would make one think that they are expecting fairly rapid declines. It is easy to claim the deal is accretive but not when TLM trades between 2 and 3 times cashflow. Simply put TLM needs to gain significant efficiencies to make this the gem that they are portraying. Still doesn't change the fact that TLM is a great buy. Regards TC