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

To: Kerm Yerman who wrote (7480)	11/27/1997 10:49:00 AM
From: Kerm Yerman	Read Replies (25) \| Respond to of 15196

MEDIA / Orbit Oil & Gas Warns Potential Predator Thursday, November 27, 1997 Orbit not an easy takeover: chairman The Financial Post Orbit Oil & Gas Ltd. chairman Bob Lamond warned yesterday that whoever is behind a possible hostile bid for his company should be prepared to pay well. Lamond said a purchase this week of 2.6 million Orbit shares appears to confirm recent rumors the junior company is a takeover target. Lamond, who owns 20% of Orbit's shares, warned the company will use whatever strategy necessary, including its shareholders' rights plan, to shoo away a hostile bidder. "We have been through the mill before," Lamond said. "We are not exactly babes in the woods on this. If anyone tries to buy Orbit, they'll have to pay top dollar." Shareholders selling prematurely are not realizing the shares' full value, particularly because of the oil and gas sector's steep share price decline in recent days, Lamond said. Orbit shares are worth at least $2, based on independent evaluations, he said. But the company has been trading around $1.20 recently, at a cash flow multiple substantially lower than its peer group. The stock (ORB/TSE) closed yesterday at $1.29, up 9›. "At this point, the stock is trading substantially under its value," Lamond said. "We thoroughly reorganized the company in the past two years and, at present, we simply intend to grow the business." Analysts say lower-priced oil and gas companies are more vulnerable to being taken over as the general market, and the oil and gas sector in particular, continue to decline. The company recently posted a profit of $1.8 million for the third quarter, on revenue of $18.1 million and cash flow of $10.2 million. Average daily production during the quarter was 811 barrels of crude oil and natural gas liquids, and 33 million cubic feet of natural gas.