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

To: Kerm Yerman who wrote (10142)	2/6/2004 8:30:47 PM
From: Richard Saunders	Respond to of 24921

DDV duvernay & the amazing start. True, growth has been scorching from the standing start in 2001. A quick skim through the ipo prospectus does show the production and reserves growth. What it also shows is that there was some fairly major spending to put things in motion. Just under $19mil. in 2001, just over $49mil. in 2002 and not sure what exactly in the last calendar. Prospectus does show 9 month spending to Sept.30, 2003 tallied at just over $129mil. Altogether that's close to $200mil if my calculations are correct. It doesn't take into account dispositions -- there were some -- and I'm not sure if it includes the close to 10 million shares issued to acquire a couple of private operations. Point I think that I'm trying to make is that I do agree the situation has the pedal to the metal and this years capex is also shown to be in the $80 million range. As long as assets are being discovered and translated into increasing cashflows and profits that will be a good thing. Cynic in me says that more detail would be good to see, especially the production and reserves growth being added per share. Furious spending sometimes can lead to interesting times down the road. Haven't made the time yet to look closer at the numbers. Would be interested to hear what someone who may have done that exercise already may be seeing....... There's also upwards of $155,000 per month being expensed in g&a. Haven't looked closely there either. Still, can't take away the growth numbers that the company has tossed up to date. It has been impressive. I suspect many of the early "sophisticated" and accredited investors and institutional fund types will have been very happy with this past week's trading.