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

To: Friend who wrote (5299)	8/7/1998 8:23:00 AM
From: Kerm Yerman	Respond to of 24922

Friend / Portfolio Choices I added Crestar Energy to my portfolio for I view them as a strong takeover candidate. Shares are incredibly cheap given reserves and land holdings. Any company with cash and financing capability should be chopping at the bit to buy them out. Granted they have a high debt level, but such a debt to cash flow multiple would be significantly reduced in a better oil pricing scenario. This is a value play. Bought Genesis Exploration and Vermilion Resources based upon planned activity of both companies over the next 6 to 12 months. They will be adding substantially to production and reserves. On a cash flow basis, these shares would appear to be at a premium - but they are at a good discount from historical multiples. Based upon future and past growth rates, these shares should regain high cash flow multiples once the oil and gas environment strengthens. These purchases can be described as agressive in nature. Based upon depressed share prices, other companies that interest me include Amber Energy, Berkley Petroleum, Canadian Occidental Petroleum, Chieftain International, Paramount Resources, Petro-Canada, Poco Petroleums, Probe Exploration, Remington Energy, Rio Alto Exploration, Talisman Energy and Ulster Petroleums. There are smaller companies that also interest me, but I believe one should focus attention on larger companies at this point in time.