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

To: AL Berta who wrote (5386)	9/15/1998 8:51:00 AM
From: Sylvia Dupuis	Read Replies (1) \| Respond to of 24921

Jusr curious, what are you implying by the C88 comment? Would it not be a good thing ? Oh yeah love the cheeky comment by the anal-ists. It's soo true. Like trying to find a good mechanic. TIA

To: AL Berta who wrote (5386)	9/15/1998 4:22:00 PM
From: Chi-Chi	Read Replies (2) \| Respond to of 24921

Al Berta, I'd like to make a couple of comments regarding your recent postings. First of all, neither myself nor anyone associated with The Energy Stock Page has ever received any payment in cash, shares or otherwise for profiling a company on our website. Your suggestion that we have has no truth to it. You also suggested that our site is full of companies with low producing wells/small reserves. If you take a look at our site you will see that we have profiled a number of companies with significant upside potential from large reserves. For example, Purcell Energy feels there is the potential for gas reserves of over 300 BCF in its Fort Liard acreage, based on seismic data and a discovery well in Fort Liard. Other companies, like Jet Energy and Courage Energy, boast extensive reserves. We like big discovery potential as much as anybody, but try to minimize risk from dependency on a single play by selecting companies that have other producing and revenue generating prospects. I do recognize that Bearcat has potential if the Turner Valley play comes to fruition as you hope, but what if Turner Valley does not come about as hoped. There are a lot of variables, particularly in a deep play, which can affect production and reserve recovery and until a period of stable production exists we still feel that Bearcat is a speculative investment. We have presented companies that we feel have good potential and have explained what we like about them. We generally look for a number of parameters in selecting our profiled companies: We favor companies trading at a low price to cash flow multiple, a discount to net asset value, a good management track record, a production history showing growth, solid reserve prospects and a relatively low number of shares (generally below 20 million). Of course there are other considerations as well. With second quarter negative cash flow of ($700,000) on revenues of $25,000 and over 50 million shares outstanding, Bearcat does not fit some of our more important criteria. We wish you all the best with Bearcat and all your other investments.

To: AL Berta who wrote (5386)	9/16/1998 1:21:00 AM
From: mike smith	Respond to of 24921

Al, a couple of points relating to your earlier response to Bearcat Bob. First of all, most junior oil and gas companies would be extremely excited over a gas well that did 1.5 mmcf/d. Nowadays you can lock up a one-year gas contract (beginning November 1) for just under $2.50 an mcf. Assuming Royalties (net of ARTC's) of 10% and conservative operating costs of 60 cents an mcf you would be cash flowing $2,475 per day or $903,000 annually for a well with this production rate. Of course you would have to factor in a reasonable production decline rate which I haven't done to keep the calculation simple. My point is that a well like this would lead to a very quick payout and, for most juniors have an impact on the cash flow per share numbers. Secondly, you downplayed "2.5 meters of pay". I can tell you from experience that a lot of fair sized reservoirs have pay intervals with as little as 2 meters of pay which yield good production rates. Other important factors besides the pay thickness that have a big impact on production and reserve recoverability are reservoir permeability, porousity and inherent pressure. Also, how far does your pay interval extend - a quarter section, half section, whole section or more ??? Lastly, I agree that analysts hype a lot of stock. But, quite frankly, a lot of people hype stock including a company's executive, brokers, your friend next door that has the stock, etc. The onus is on us as individuals to do our own due diligence before investing our hard-earned money. Instead of listening to hype we should be looking at non-promotable parameters such as a company's historical results, managements' track record and the prior experience of each "impact" player on the management team. These factors when looked at in conjunction with the promotable items (such as next year's cash flow or production rates from a new well) should give an individual a good idea as to the value of a company's stock. Personally, I occasionally glance at the stock's featured by Chi Chi to provide me with a list of juniors that look interesting. I then follow this up with my own due diligence to see if any of these stocks are worth investing in. I don't concern myself with any short-term statistics they post as to their performance of stocks written up because to me this is irrelevant. You should be adding to your portfolio in both good times and bad as, over time, the equity markets will outperform T-bills and other fixed income instruments. As this current "down" cycle recovers (as all cycles have done historically) your portfolio of junior companies will improve. I hope for every high-risk Bearcat Exploration stock you own that you are offsetting this with a couple of lower-risk stocks that are valued based on fundamentals (ie. cash flow, NAV,etc). Keep up your lively comments as they keep this thread entertaining !!! However, please avoid using heresay and making personal attacks. Continued Good Investing Mike