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Gold/Mining/Energy : HRP.T Harbour Petro -- Ignore unavailable to you. Want to Upgrade?

To: terry astle who wrote (28)	5/12/1998 8:08:00 PM
From: Brian Diggle	Read Replies (1) \| Respond to of 62

The last time the company sold off assets there was a spike in the stock price. If we get a spike again it might be a good time to dump these shares. If you're looking for another Oil/Gas play consider Ultra Petroleum or the other companies working the Green River Basin in Wyoming. There is an active SI thread for Ultra (some of the others have SI threads, as well) Good Luck

To: terry astle who wrote (28)	5/13/1998 12:02:00 AM
From: Richard Saunders	Read Replies (1) \| Respond to of 62

terry/ no expert here but it would seem the co. has got to do what it's got to do. A quick skim thru the recent annual release indicated something had to be done with the financials to make the bankers happy before June 14. The property being sold (Wayne-Rosedale oilfield approx. 60 miles east of calgary) was discovered more than 40 years ago and has it's ups and downs with production. Harbour announced their initial agreement to purchase their working interest in the Wayne oilfield just as prices seemed to be peaking last fall (Oct. 9 news release). You know what has happened to oil pricing since........ As of the beginning of this year operating costs in Wayne-Rosedale were relatively high, somewhere in the neighbourhood of $10 - $11 per barrel of oil equivalent. As well royalties were slamming the economics, reportedly just over 22% on all oil & gas production (12.4% freehold royalties and 9.7% overriding royalties). When Harbour purchased the property wellhead prices were approx. $24cdn. You can do the math...... back then operating netbacks before overhead and interest were less than $8. The erosion of oil pricing has obviously changed the economics of the original plan so what to do?............ bankers nipping at your tail, future oil pricing not looking too bullish, mgmt. shuffling............ Personally I think the co. did what it had to do even though it seems to be stepping backwards. I don't have a position although have held in the past.