Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerm Yerman who wrote (4912)	4/8/1998 12:40:00 AM
From: mike smith	Read Replies (3) \| Respond to of 24921

Oil and Gas Reserve Evaluations Kerm, You bring up an excellent point about independent engineers used by a company to value its reserves. Of the "big three" engineering firms, Sproule has the reputation of being the most aggressive or optimistic when doing valuation work, McDaniel's has the reputation of being extremely conservative and Coles Gilbert is somewhere in the middle. This is why you often here the addage when buying oil and gas properties to "buy on McDaniels and sell on Sproule." Since the majority of an oil and gas producer's net asset value is derived from its reserve valuations, the independent engineer employed by the company to do the valuation becomes a very important parameter when placing credibility on reserve values calculated. As an investor I always feel more comfortable when, for example, a conservative firm like McDaniel's is supplying the reserve information. Mike

To: Kerm Yerman who wrote (4912)	4/8/1998 10:15:00 PM
From: Syncrude	Respond to of 24921

Kerm, the valuation parameters that I posted were taken from a L‚vesque, Beaubien research report on a company in April 1997. Reserve life was not discussed. I appreciate that net asset values must be used in conjunction with other valuation parameters, and am trying to use balance sheet valuation in this context. Thank you for contribution to this and your other thread. ANY OTHER VALUATION FREAKS OUT THERE ? An oil and gas financial analyst or two perhaps. Don't be shy, we won't tell.