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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (30431)	4/21/2003 5:55:24 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 36161

ISO, I would suggest that you take a look at Paramount Energy (PMT.UN). IMO, better than PVX. 100% natural gas. Low debt to cash flow ratio below 0.7:1 Unhedged except for April where they have 40% hedged at more than $C10 per gigagoule that is approx US$7/mcf. They probably entered additional hedges in recent week(s). Currently at $C12.90. Expect a monthly distribution of 24% plus. There is only one negative, reserves of 6.5 years. But they have the balance sheet for acquisitions and have very good exploration successes.

To: isopatch who wrote (30431)	4/21/2003 7:32:52 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 36161

PMT.UN announced distributions of $0.277 per unit for an annual rate of 25.7%. Based on current forward prices and hedges in place they think the dividend will hold for the remaining of the quarter at least. I can see them paying a lot more next winter if the NG shortage materializes.

To: isopatch who wrote (30431)	4/21/2003 9:51:41 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 36161

Iso, Thanks, I've tried some of the royalty trusts and it was bit too much like watching paint dry for my taste. Looks like there's been some more excitement recently with PVX. The only way I've been playing the CanRoys is by buying some small Canadian E&P companies whose management is in the selling mood, and that look like good candidates for purchase by these trusts. If they wanna buy you they usually don't quibble about price it seems. I believe Enterra (EENC), one of your (past?) favorites, is a prime candidate for selling out to a CanRoy now that they are almost finished drilling out that great play of theirs. Had sold it on disappointing reserve adds for '02 but looking to buy back in if it ever dips to the low 8's again.