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

To: samson who wrote (4639)	2/9/1998 9:00:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24920

Samson / Penny Oil's Hang on to those PCA shares. We all love a good penny stock, don't we. However, let me mention that a company that has 50 million shares outstanding with shares valued at $0.50 is more expensive than the company that has 10 million shares outstanding and sells for $1.50/share. In other words, focus on total market cap. over that of price. With that said, yes - I like some small cap. oil and gas producers. However, you used the word exploration. That's another specification that makes the review process a little more difficult. Not to many real small companies are into exploration in their early stage of development. Rather, they are into exploitation and development. This means they will attempt to grow the company with low risk drilling and at a expenditure rate they can handle. Usually, a company works production to a certain level before they step up into exploration. Quite a few companies feel 1,000 bbl's/d production is the time to change corporate objectives. Okay, here's a few names. Check out my Speculative 15 listing for openers. Nine of the companies have shares selling for less than $1.60. For reference, go to techstocks.com There are companies I like for various reasons in the penny category. You might want to check out Belair Energy, Lexxor Energy and Harbor Petroleum. If you like international companies, CanBaikal Resources and Black Sea Energy are two interesting prospects. Stepping up a little bit in share value, Tethys Energy, Thunder Energy and Spire Energy are interesting operators. There are other larger companies whose shares have been battered in the recent market sell-off which might attract your attention. Maxx Petroleum, Beau Canada Exploration and Pan East Petroleum are a few that come immediately to my mind. I really like Upton Resources and Richland Petroleum, both in the $3.75/share range. There are numerous companies other people like that probably fall within your area of interest. Perhaps they can respond with their favorites also. Watch the Alberta Most Active list I publish in my column every morning at Kerm's Korner. A company that has increased their share value in leaps and bounds over the past 1-2 weeks is HEGCO Canada. They are a good penny stock story. Esker Resources is one company I know nothing about and plan to look into as a result of trading patterns. There are others. Permit me to offer one additional piece of Kerm's wisdom. Do not get caught up in the hype many small companies practice to enhance share value. The company that offers greatest return on investment is the low profile situation that can be found with consistent due diligence. In most cases, not 100%, I won't review a company with daily production less than 1,000 bbl's/d -- that have personnel on board serving in an investor relations role. That's a bad sign to me. The same applies to marketing firms promoting a company's stock. These companies should be investing into a shirt/sleeve CEO and personnel/services of geologists, engineers and land people. That's what I want to see when I ask about a company's payroll. That tells me that primary goals are to get the black stuff out of the earth, rather than filling their pockets via share value. Drilling success will result in increased share value. I love the company that is growing and whose shares lag in the marketplace. In time, the investment community will recognize the company's progress and reward the patient shareholder handsomely.