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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: excardog who wrote (15696)	12/12/2002 12:21:54 AM
From: Ed Ajootian	Respond to of 206419

excardog, ATPG -- Just keeping '03 US production flat to '02, with $4 gas in the US and $3.20 gas in the UK, this company generates $80 M in cash flow for '03 (i.e., $4/share). The $3.20 UK figure comes from the CIBC report, which I believe is a tad high, but since I couldn't find anything to refute it I'm relying on that figure. One thing I do know is that in the ATPG 10K for '01, the price they used for their SEC PV10 calc. for their UK reserves was $3.88. So they have $80 M to play with. Figure $25 - 30 M for US development costs, and $15 - 20 M for UK dev. costs. That leaves $20 - 30 M for acquisitions, which should be plenty to reload the pipeline. Remember, they don't _find reserves, they buy them. ATP is almost more like a manufacturer than a typical E&P company. Their raw material is other companies' PUD and PDNP reserves. They add materials and labor and produce oil & gas as a result.