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: Richard Saunders who wrote (5109)	5/28/1998 10:53:00 AM
From: Scott Mc	Respond to of 24921

Richard, Good Post!.........TN News release.. TN mentioned here a few times recently..Scott Tarragon Oil and Gas Ltd - Post says stock trades at big discount to NAV Tarragon Oil and Gas Ltd TNShares issued 697300371998-05-27 close $9.75Thursday May 28 1998Buy & Sell columnist Sonita Horvitch says in the Thursday edition of the Financial Post that Tarragon Oil and Gas is a top stock pick of Toronto-based Nisker Associates' chairman Neil Nisker and managing partner Bruce Campbell. Ms Horvitch notes the stock, currently $9.80, has a 52-week range of $17.65 to $8.60. Mr Campbell says that Tarragon's stock was down significantly. He says that Tarragon's stock trades at the largest discount to net asset value of any senior Canadian energy producer. He says the market did not fully understand Tarragon's purchase of most of Unocal Canada's oil and natural gas properties in Alberta and B.C. Overall, Mr Nisker and Mr Campbell are choosing stocks that should do well, even if the general market corrects. Mr Nisker says the pair are not market timers. The money management firm's strategy is to buy businesses at a good price for the long-term. That, in turn, requires a careful assessment of management.

To: Richard Saunders who wrote (5109)	6/1/1998 12:02:00 AM
From: mike smith	Read Replies (2) \| Respond to of 24921

Richard - To take the Net Asset Value discussion a little further it would be nice if we could see a standardized approach to NAV calculations presented by companies in the oil patch to make comparisons between companies a lot easier. Some of the problems I see when reviewing NAV calculations provided in a company's investor information materials (ie. annual reports, corporate brochures, etc.) are as follows: - Some companies like to throw in values of assets that may not have been appraised independently such as undeveloped acreage, tax pools, seismic data acquired, etc. - Various discount rates are used. It would be nice if company's could always provide the same discount rates when referring to the Net Present Value of their oil and gas reserves (ie. 10% or 15%preferrably) - When discussing the types of reserves included in valuations provided it would be nice if Company's used the same definition of proven plus "probables". The general practice is to risk the probable reserves by 50%. This yields what is widely known as "risked probable reserves". For enhanced comparability each company should provide reserve quantities and reserve values for proved reserves only and then for proved plus risked probable reserves. At the end of the day, Companies will try and put forward the most favourable NAV calculation possible. It is up to you and I (the investor) to do the proper due diligence and crunch out our own NAV. Since a Company's NAV is such a key parameter in valuing its stock price I think it is imperative for all of us to understand the areas in which company's can try and "inflate" this figure. Lastly, make sure when looking at NAV 's that you evaluate it on a Fully Diluted per share basis as well as a Basic per share Basis Mike