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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (7812)	10/6/2004 12:00:29 AM
From: Taikun	Respond to of 11633

<I haven't seen anywhere a study which even appeared to prove that getting the deeper tar sands out of there won't be prohibitively expensive.> I think this is the reason why you see the resource numbers vary so much. I've seen numbers with variance of over 1 trillion barrels. (ie if my mind serves me, one estimate is about 1.5 trillion barrels, another is about 2.8-I could find them if I looked)

To: Seeker of Truth who wrote (7812)	10/6/2004 12:29:33 AM
From: Taikun	Read Replies (1) \| Respond to of 11633

Malcolm, I hold some COS but have always been concerned about cost overruns and other production issues with the oil sands. In a sense, I think they got lucky with the oil price. In a regular trust, the higher oil price should mean higher distributions and it likely will mean the same for OST and COS eventually, but first the issue of debt and also paying cost overruns from cashflow must be dealt with. I still have to check if OST is DTC eligible (ie distributions not taxed in an IRA) and today I read the Sedar filing but was a bit unsure what the unitholder gets upon redemption, currently scheduled to be 2010. I also note that distributions seem to be at management's discretion. I am still not sure how much to allocate to this. Right now it is 1/5 of my COS position. What do you think about these issues (redemption, distributions, allocation vs COS units in ones portfolio)? Thanks, David