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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Lorne Larson who wrote (1846)	11/9/2001 12:29:16 PM
From: russet	Respond to of 11633

PWI.un is my favorite trust :-)) We are a market,...two people can look at the same data on a field, talk to management and advisors and take back two different views of what Cypress' producing and "development properties" mean. From their last financial statements,..." PrimeWest is currently engaged in a program to dispose of certain non- core assets, the proceeds of which will be used to reduce debt. Proceeds at this program are targetted up to $80 million.",...one can assume they are spinning off a good chunk of the 564000 acres. Proven reserves is also an interesting term because these days they mysteriously double and triple when infill drilling, well stimulation, horizontal drilling and other interesting completion techniques are brought to bear. As you said,...when does one draw the line. I'm prepared to allow a royalty trust to work the odd development property with partners, particularly when the data on the property indicate the rewards could be worth the risk. Cypress still almost tripled PWI's gas production, and doubled gas proven reserves, and infill drilling etc., will considerably increase the reserves and possibly the production as well due to the high quality of the fields. Perhaps you could specify which properties (development or otherwise) PWI is retaining from Cypress, that you have heard have proved to be not the opportunity PWI expected. Then we could ask PWI ahead of the special meeting to comment on those properties. I find it difficult to summarize a large amount of information in a few paragraphs. It is easy to pick on little pieces of a company and say this was a lousy decision, and this stinks,...but one must look at the company as a whole. Because some people, particularly the big bank brokerages took a narrow view, and panicked as oil and gas prices dropped from their recent highs, we got to pick up some shares at much reduced prices from their longterm trends, and at a discount to what income and balance sheet financial ratios would suggest. That is the market,...a wildly swinging pendulum of emotion with few people looking at the long term trends or underlying fundamentals. The market is a minute by minute bet on what is going to happen in the future based usually on flawed and narrow assumptions, and what the person beside you is doing. If the market were perfect, Warren Buffet would be working for an insurance company, not owning them (gggggggggggggg).