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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (7371)	11/22/1997 4:30:00 AM
From: Kerm Yerman	Respond to of 15196

REPORT / Anderson Exploration Gordon Market Opening Notes November 20, 1997 Anderson Exploration Ltd. (AXL-T:$13.90) BUY Reports Excellent Year-End Results CFPS for the year ended September 30 was $3.14 vs. $2.54 -- well ahead of our forecast of $2.90 basic ($2.85 fd). Q4 CFPS was $0.69 vs. $0.65 in 1996. Gas production was up 9% year-over-year and liquids volumes were up 12%. Proven reserve additions replaced 159% of production at a cost of $7.75/boe proven ($6.71 proven +1/2 probable). We believe these to be competitive particularly in light of the inflationary drilling and service environments. Also, facilities represented over 25% of the capital spending in 1997. Over 90% of the reserve additions were added through the drill bit, not acquisitions. An 80% drilling success rate was achieved on 669 (426 net) wells drilled. Undeveloped land at year-end exceeded 1.3 million acres. Our 1998 fd CFPS forecast is $3.45 ($3.50 basic). Currently trading at 4x our 1998 fd CFPS, Anderson trades at a full multiple point below its peers. We reiterate our BUY recommendation and our 12 month stock price target of $23.00.