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

To: Doug who wrote (4475)	1/13/1998 4:13:00 PM
From: Kerm Yerman	Respond to of 24927

Doug / Talisman Energy International Turmoil. I don't think Talisman's area of operations are in jeporady. The North Sea is a good location and they are growing quite well there. Indonesia has been a hotbed of oil activity for decades without any serious problems. The Bre-X affair was a fiasco and I wouldn't relate that to oil & gas operations. Algeria is a problem area and I suspect their need for international companies will keep negative activity to a minimum. The one safehaven that Talisman is neglecting is the Gulf of Mexico. I would like to see them pull a coup off with a good acquisition in this area. As example, Chieftain International is an excellent candidate. I agree with the analyst you spoke to. Talisman still is my favorite Senior Oil and I would not hesitate to start accumilating shares in the company today. At last Friday's closing price of $36.00, Talisman shares were selling at 5.1X 1997, 4.4X 1998 and 3.5X 1999 cash flows. In my opinion, shares are very cheap at this time. The company has been firing on all cylinders and their operations should command a premium cash flow multiple. Another thing to really consider, they are not focused into any one region like most of the Canadian Internationals. Yup, I still favor TLM. I believe you would be buying into a proven winner with a good track record. The company will grow at a good annual rate for a few years to come. Without a doubt, TLM would be my number one target for continued accumilation of shares into my retirement fund. All the fundamentals are in place to take advantage of share value at this time. You can put shares under your pillow and sleep well at night with your investment at today's prices. I believe we are looking at a rare event and opportunity to buy into Talisman at this level.