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

To: Greg Spendjian who wrote (5220)	7/6/1998 1:13:00 PM
From: SofaSpud	Respond to of 24899

Greg / Energy Trusts FWIW, I have some AEC Pipeline LP units, and would be a buyer of more at slightly lower levels than present. I haven't looked very hard at the oil & gas production trusts; if I were to do so, however, I would focus on the oil sands trusts, where you have a well-defined, long-lived asset, and where technology seems to be delivering falling production costs. The trusts relying on conventional production would make me nervous as a long-term investor, as decline rates will become an issue at one point or another. The question of distributions is probably the key right now. Prices are well off precisely because the market questions how much there will be to distribute in the next few quarters. To buy these things you have to believe that oil & gas are cyclical, and that prices will go up again in the future. If you believe that, and have a time horizon of several years rather than months, it's worth looking into energy trusts.

To: Greg Spendjian who wrote (5220)	7/7/1998 12:19:00 AM
From: Scott Mc	Read Replies (1) \| Respond to of 24899

Greg, I also have some of the AEC Pipeline.. I also own the Enerplus ERF.G resource fund.. Both worth a look IMO, have them as long term holds..Scott

To: Greg Spendjian who wrote (5220)	7/7/1998 11:41:00 AM
From: TheMajor	Read Replies (1) \| Respond to of 24899

Greg/Energy Trusts In your examination of energy trusts, you may wish to look at Shiningbank Energy. (T-SHN.UN) I have a position because I liked the company's light oil and gas assets, weighted toward gas. Management is well-respected.( Chairman is Arne Nielsen.) Quarterly distributions have dropped somewhat since I bought in, but that's not surprising given current oil pricing. However, I think SHN.UN distribution has dropped to a lesser degree than some other trusts. Even so, yield is still excellent and provides a continuing, solid source of income for a long-term investor. Wood Gundy puts out an energy trust newsletter on a frequent basis. The analyst is Brian Ector and I think he is in their Calgary office, although, regrettably, I do not have his telephone number. Good luck in your search. I, and perhaps others, would be interested to hear where, if, you land on an energy trust. Kind regards TM