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

To: kollmhn who wrote (15733)	12/12/2002 11:30:32 PM
From: Ed Ajootian	Respond to of 206425

Koll, ATPG -- Good point, let's talk asset value. Their presentation slides show that they are estimating that they will have 261 BCFE of proven reserves at year-end. They had 235 BCFE last year and produced 26.5 BCFE this year. Considering they didn't pay a dime for any acquisitions this year, its pretty cool that they still increased their reserves by 52 BCFE. I guess these came from the lease awards they got, one from the MMS in the Gulf, and the other from the DTI in the North Sea. Grossing up the $80 M market cap by the $100 M of debt, you get a value being placed on the reserves of only about $.70/mcfe. This is absurdly low, considering that many companies are getting valuations of $2/mcfe these days. Granted, ATPG's value would never get that high since their UK reserves are not worth as much as US reserves, and they have more PUDs than a normal company has. Still, the $.70 figure seems like an excessive discount. One last thing on that Helvellyn well. I know Al Reese said in the latest hype show to expect news "early next year" or something to that effect, but it is not out of the realm of possibility that they could complete and test the well in the next week or so, and they decide to just put out the news now rather than wait. The well was spudded on 9/8 and the last 2,000 ft. (out of total measured depth of 14,000 ft.) were horizontal, through the pay zones, so it could easily be done by next week.