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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (9603)	2/22/2003 11:49:57 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24921

Kingfisher / Baytex Energy This is a company I haven't reviewed in a couple of years. I did have it in my Portfolio 2-3 years back in time and sold the entire position for what I will categorize as a small profit - shares were quite higher compared to today's share price. The reason I sold were rumors on Bay Street that questioned their reserve valuation. I need to evaluate their reserve numbers over the past of couple of years to see the numbers and to check if they had any ceiling write downs. If that did occur, I would feel more comfortable with current stat's related to reserves. I have automatically passed on the company because they are into heavy oil in a big way and I am not fond of any company in this area. My first impulse says I would have to determine why share price is so low in comparison to cash flow and NAV. Usually, there is a strong underlying reason. Part of the reason could be related to heavy oil which is a very large portion of their total production. I would also want to get deeper into their debt situation. Has there been any word that they are on the auction block. If they want to be taken over - now is the time. You specifically mentioned Husky as a potential bidder for the company. Is the reason that Husky is a large player in heavy oil production and, their key core areas offset Baytex's properties. If the answer is yes, I would think there is the possibility of a buyout.