To: Rod Copeland who wrote (2275 ) 12/21/1997 6:00:00 PM From: Gabriela Neri Read Replies (1) | Respond to
Hey, I appreciate the response. I have been an investor with HEC for about 2 years, and I have a good feel for the stock, how it trades, and the whole situation in Columbia. This ggod feel has come at a price, as I have had a couple of bonehead ill-timed purchases lately with the stock. Overall, it has been a very profitable investment, and I am trying to keep a core position which stays long for all events to play out. Around this position I trade the stock, sometimes successfully and sometimes with a bone head. However, by now I know not to buy breakouts because even though they will work once in awhile with HEC, most times they wont-you have to buy dips. Your comment about the 7 and seven -eights drill bit is frighteningly accurate. Nonetheless, I am quite bullish on this stock at these prices because you are not paying that much for the exploration potential in Columbia, on which the full assault has really just begun. US proved reserves are worth more than 1.50 per share(I think) and cash is about 1.00 per share(maybe a tad less). Which infers that at a price of 5.00 you pay 2.50 for the Columbia exploration play. Doesn't seem like a bad bet, particularly considering that we have a very well respected management team and a handful of devoted institutional core players. I must admit that I was surprised to see how much that Houston based fund paid for their 5 percent interest in the Cambulos Field wells(I think that was the field which they purchased). It effectively capitalized the field at almost one half billiondollars-25MM for 5% equals 450MM for 100%. Do you have any comment on this transaction and what it may imply. I have heard that this energy fund is quite savy.
