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

To: Scott Mc who wrote (5273)	7/28/1998 6:23:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 24905

Scott / Search Energy Pretro-Canada has indicated they will be holding shares as a long term investment which indicates much more of a holding term than the 12 month holding requirement. This is a good deal for both companies. It gave Search a much needed base of reserves, production and undeveloped land. Petro-Canada probably got a lttle less than desired for the property - but it was non-core and still will hold an indirect interest in properties via an estimate interest of 30% holdings in Search Energy. I'm sure there is a working agreement in place to develope and explore the properties resulting in potential increased value to Petro-Canada without any further cost to Petro-Canada. A jump of more than 20% in share price yesterday is a beginning to increased market capitalization for Search and already a return on Petro-Canada's investment. I wouldn't worry about shares being dumped on the market. But, also keep in mind that a holding company is also a major shareholder and will own about 10.8 million shares of Search by the end of November. Almost half of all issued and outstanding shares will be in the hands of Petro-Canada and the holding company by the end of November. I don't know the numbers on a fully diluted basis, but we're looking at a minimum of 58 Million shares.