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

To: Stocker who wrote (4162)	11/18/1997 2:04:00 AM
From: Kerm Yerman	Respond to of 24916

Bird / Upton Resources You said, "Just when I thought I had it figured out, a new twist." I couldn't have said it better. I can't tie in the production numbers from their October news release and yesterday's news release. I was attempting to compare apples to apples when comparing the two reports and came up with oranges. Net effect is less 1,000+ bbl's of exit oil production for 1997. I would like to know what production they gave up and what production they gained. Their cost for total package of lands and rights was $38.5 million. I would like to know, of the original amount - what value they have retained. They were previously ballparking cash flow of $2.00 for 1998. I need to learn what both 97 and 98 looks like now. Since transaction date is October 1st, it should be easy to determine where they are by looking at the 4th quarter only - concentrating on cash flow and production. Last, I wuld like to get an estimate of current NAV which they should be able to ballpart at this point in time. These would be my questions. If anyone is to beat me to the phone, they might want to touch upon these questions and summarize conversation and findings here. The first the public learned of talks regarding purchase of lands from Shell was January of 1997. Backing up one month to December 14th, shares of Upton were valued at $6.90. The market capitalization of the company then must be pretty close to what it is today. Their average 4th quarter production last year was 4,000 bbl's. I don't have the exit production handy. Their reduction in cash flow estimate for 1998 would have to be cut in half to justify current share price. I don't see that happening. I will say this, their 4th quarter will be important and will effect share price.