Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: wildandwonderful who wrote (23152)	6/1/2003 1:14:42 PM
From: Ed Ajootian	Respond to of 206209

ljmj, MEXP & CRZO -- To your earlier point about companies getting value for their prospects, it looks like that may be starting to happen already, based on the pricing of the EPEX - MEXP deal. EPEX paid about $2/mcfe for the proven reserves which is above market as far as I know, so it will be interesting to see how much EPEX allocates to "unproven oil & gas properties" when they do the purchase price allocation on their books. Maybe companies are starting to become willing to pay for prospects after all. The fact that the market for EPEX stock (after a 1-day knee jerk reaction) has looked approvingly on the transaction will not go unnoticed by other potential buyers and sellers out there, and I would expect to see a flurry of deals over the next few months where the larger companies start making offers to their junior counterparts that they can't refuse. The larger companies now see that even if they overpay for the proven reserves being acquired, this bull market will very likely "excuse" them for such a transgression and continue to run up their stock price. Regarding Carrizo, they have more rigs going now (8) than at any other time in their history, and one of them is one a them long shot elephant-hunters, so that is why the stock is powering up IMO. Not sure how much more it will move given that there is about $6 M of convertible stock out there that is now in the money (convertible at $5.70). I sold a little bit of my position on Friday since I believe there is a good chance we will see some insider selling pop up at current prices, given that it has occurred at similar prices in the past.