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

To: Kerm Yerman who wrote (5055)	5/6/1998 12:46:00 PM
From: Mike Smillie	Respond to of 24921

Canaccord recommendation this morning on Renata: Renata Resources (RTA : TSE : $1.04 : Issued 119.7M) Recommendation: SPECULATIVE BUY Target price: $1.50 Market Capitalization: $124M Long-term Debt: $31M LTD/CF: 1.3 Net Asset Value/Share: $0.59 P/NAVS: 1.8 Here is a stock we like which keeps getting cheaper by the day. Renata is out of favour these days because its assets consist mainly of crude oil in southeastern Alberta, which came with the acquisition of Intensity Resources just over a year ago. Renata was able to increase production by one third to 8,400 boed by the end of 1997, but low oil prices and wide heavy oil differentials have rendered some of that oil uneconomic to produce, and the Company has elected to shut in 900 bopd. Renata is looking for natural gas to balance its oil production, focussing on deep targets in the Beaverhill Lake, Leduc, Nisku and Wabamun formations of west-central Alberta: Last year Renata was rewarded with a prolific Leduc reef discovery at Lambert, Alberta which tested 53 mmcfd. The pool is believed to have 100 bcf of raw gas in place, although it is 35% sour. Renata has a 30% interest with Talisman Energy. The well is expected to be onstream by the end of May at 5-6 mmcfd net to RTA. Several shallower zones are also prospective for hydrocarbons, so this well may be twinned in the future. Renata has a 35% interest in another deep gas prospect at nearby Smoky, in which Alberta Energy is the operator. This well has been drilling for several months toward a target depth of 5,000 metres. It is now drilling in the Leduc formation and should be completed in a matter of days. The Leduc could contain as much as 200 bcf of gas reserves. Once again, the shallow zones have been logged and appear to be capable of producing oil or gas. A third deep gas prospect is scheduled to be drilled at Bergen, Alberta later this summer. This is another Leduc reef outlier, measuring about four sections in size, located between large producing fields at Strachan and Ricinus. The reservoir could contain 500 bcf of gas reserves, and nearby wells have produced 20-100 mmcfd. At the moment Renata has a 100% interest in the play, but it is in discussions with a major oil and gas producer about sharing the cost and the risk. Lambert and Smoky are not too far from Musreau where Chevron Canada, Newport Petroleum, Gulf Canada Resources and Berkley Petroleum have made a large Wabamun gas discovery. The discovery well is known to be capable of producing 40 mmcfd, and later wells are thought to have tested as much as 140 mmcfd. Renata is contemplating a Wabamun test of its own. In addition to the high impact projects described above, Renata has a suite of low and medium risk prospects, such as light oil at Ingoldsby, Saskatchewan and Knopcik, Alberta which will balance the heavy oil. Any combination of an oil price increase or a narrowing of the heavy oil differential totalling $2.00/bbl would allow the shut-in production at Alderson, Alberta to come back on stream. In the meantime we have reduced our estimates of 1998 production and cash flow. On a gross basis, cash flow will grow to $21M in 1998 from $17M in 1997 because the Company will have the benefit of a full year of Intensity production. On a 'per share' basis, however, cash flow could decline to as little as $0.15, and hence the stock price weakness. Any improvement in oil prices would clearly benefit Renata which remains levered to crude oil, but we like the potential for growing natural gas reserves and production arising from high impact exploration. R. G. G. (Gord) Currie (403) 508-3805 Just passing it on, Mike

To: Kerm Yerman who wrote (5055)	5/6/1998 4:39:00 PM
From: AL R	Respond to of 24921

Oil and Gas - recent insider trading Company Insider Date Bought Sold Price Held Alberta Energy P. Amirault 02/98 3500 33.00 500 Alberta Energy B.J. Bradley 03/98 5000 34.22 8810 Alberta Energy R.K. Eresman 03/98 9500 34.00 3700 Alberta Energy J. C Lamacraft 03/98 10000 33.25 15000 Alberta Energy R.W. Oliver 03/98 5000 33.95 6483 Alberta Energy J. A. Patterson 03/98 10000 34.00 586543 Alberta Energy D.S. Serink 03/98 300 34.25 415 Alberta Energy R.A. Towler 03/98 5000 33.20 5000 Amber Energy R. Lewanski 03/98 64000 16.00 118200 Amber Energy G. A. Robb 02/98 20000 15.38 20000 Anderson Exploration B.H. Dau 03/98 48000 16.50 82311 Aur Resource M. Drouin 03/98 2000 3.35 2000 Canadian 88 W. D Dyment 03/98 45000 5.88 144659 Can Conquest Robertson Steph 02/98 48500 1.04 6967400 Can Natural Res. K.A. MacPhail 03/98 37400 26.50 86574 Canrise Res. B.N. Crowe 01/98 27000 5.95 16400 Denbury Resources TPG Advisors 02/98 313400 22.48 7931048 Elk Point Res. B.J. Goodfellow 02/98 5000 6.00 18075 Elk Point Res. R. Chaney & Co. 03/98 79800 5.99 Elk Point Res. R. Chaney & Co. 03/98 300000 5.84 2878100 Enertec Res. N. Fraser 03/98 10000 8.10 15000 Gulfstream Res. J.H. Graig 02/98 5000 7.65 0 Hurricane Hydro. G.G. Van Doorne 02/98 2000 10.00 69900 Hurricane Hydro. F.A. Youck 02/98 20000 10.70 182220 Kelman Tech D. M. MacDonald 02/98 61100 1.75 1743048 Nevsun Res. D. Halliday 01/98 6500 3.50 Nevsun Res. D. Halliday 02/98 500 4.05 0 New Cache K. MacDonald 03/98 2000 7.00 19000 Newalta A.P. Cadotte 02/98 15300 8.25 194900 Newalta A.P. Swanson 02/98 3000 8.15 12200 Newport Energy U. Upitis 03/98 5000 5.75 815088 Numac Energy Numac En. 02/98 23400 5.65 0 Petroment Res S. A. Supple 03/98 77000 3.50 0 Pinnacle Res. J.F. Costello 02/98 4090 14.00 9090 Probe Exploration L. Nachshen 02/98 50000 4.80 120000 Prudential Steel R.J. Jaggard 03/98 600 14.30 0 Purcell Energy G. Coslin 03/98 8000 1.00 39750 Purcell Energy B.J. Murray 03/98 5000 1.00 140457 Redfern Res. G.F. Fink 02/98 5000 1.65 178880 Renaissance J.A. Curkan 03/98 2367 28.50 546 Renaissance W.L. Matthews 03/98 210072 28.00 800000 Renaissance J.A. Thomson 03/98 55000 28.47 36228 Renaissance C.H. Woitas 03/98 50000 28.25 476790 Rio Alto Exp. N.M. Edwards 03/98 100000 14.00 710040 Rio Alto Exp. R. Shaunessy 02/98 48000 12.75 211580 Suncor D.W. Byler 03/98 3248 54.00 884 Suncor G.E. Manwell 02/98 9901 50.00 29380 Suncor M.W. O'Brian 03/98 13500 52.75 1483 Suncor J.K. Russill 02/98 565 38.62 1881 Talisman M.K. Witle 02/98 700 40.58 1200 Vermilion J. Boyce 03/98 110000 7.90 535500 Vermilion L. Donadeo 03/98 300000 7.80 2512539 Vermilion C. Ghersinich 03/98 540148 7.02 3074352 Vermilion J. Ramescu 03/98 71000 8.00 0 Viking Energy L.W. King 02/98 3000 7.00 7000