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

To: Kerm Yerman who wrote (4355)	12/30/1997 6:07:00 PM
From: david james	Respond to of 24918

Kerm, Thanks, I assume you are referring to the selection of the stock in the Financial Post? David

To: Kerm Yerman who wrote (4355)	12/31/1997 9:09:00 AM
From: HAZ	Read Replies (1) \| Respond to of 24918

Kerm / All / Flow-Through Shares We are witnessing a recent rush to issue flow-through shares at quite decent prices relative to current trading prices. SEY 1.5 million shares @ $ 1.90 27% premium over 1.50 trading price COU 1,070,000 shares @ $ 2.10 20% premium over 1.75 trading price RLP.A 695,000 shares @ $ 4.95 21% premium over 4.10 trading price I suspect that the companies want to secure just enough financing with as little dilution as possible in order to guarantee their 1998 drilling programs. Maybe they are little afraid that the capital markets will not be as eager to buy shares in 1998 so crab what you can now. Most of these flow-through shares go to institutions or directors and management in need a tax write offs so the common Joe is excluded from these shares issues. What is the implication for cashflow and earnings of Flow-through versus common shares. Are there any tax experts present that can explain how these flow-through shares work both for the buyer and the issuer. My own personal take is that this is very positive for companies concerned, they are securing the capital today and reducing any risk of no capital in the future which would impact their future drilling plans. Happy New Year and a Prosperous 1998

To: Kerm Yerman who wrote (4355)	12/31/1997 10:35:00 AM
From: HAZ	Read Replies (2) \| Respond to of 24918

Kerm / Wolverine Energy I looked at this company a while ago and forgot all about it. I researched it again once I saw it on your spec 12 list and it looks very promising. Lots of development potential, good success with the drill bit and good operating numbers, low cost production increases. **************** Draig Energy I noticed that you added Draig to your list. I have owned this one for over 1 year now and it has performed really nicely. I did post messages on it a few times during the year but no takers. I think now that you have added to your spec list we will get more interest and discussion. It's ironic I think I sold you some shares at 1.45, I wanted to raise cash levels a bit and it was one of the few stocks that was still up. I still own considerable shares in Draig and I believe 1998 will be a good year for them. *********** Canadian Conquest I'm still holding this onto this one, I should have averaged down when it hit 0.85 but I chickened out. It's funny how psychology works, the time that you should be buying you are unsure and scared to add any more shares. The stock has since firmed up to 1.10 and I think it will move up some more once the fall drilling results and reserved additions are announced sometime in January I hope. ************* Spire Energy I really like this one as well, I talked with the President a while ago and he was very helpful. Important Notes Spire has hedged 40% of 1998 gas production at 1.90 CND which is a very good price and 15 % is sold to long term US contracts at good prices. The other production will be sold at spot prices which are low right now but should move up with an decrease in temp's. 1996 average prices were 1.41 1997 average prices are 1.69 Conservative projected 98 cashflow is 6 million or 0.30 /share 20 wells planned for 1998 and 10 of them are exploratory. 16/19 success rate in 1996. These guys are a very lean gas finding machine. They own 3 gas processing plants 100%, with a staff of 9. They are also very cost effective with operating costs of 0.33 Mcf or 3.30 BOE. F&D costs are 0.40 Mcf on Jan 1, 1997 or 4.60 BOE. They were part of a survey and they came in 2nd place with the lowest finding cost. Although they are primarily involved with shallow gas (average well 900 meters) they have tremendous potential to add low cost reserves. 40 BCF pool 7 BCF already produced ---- 33 BCF remaining of which 24 BCF is net to Spire and only 10 BCF has been recorded on their books. Do the math. Once again thanks for all your help, advise and information and I hope I have added my share during the year. My new Years resolution will be to add more information during the year and help out whenever possible. Cheers and Happy New year