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

To: mark calgary who wrote (5461)	10/6/1998 3:04:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 24905

Mark / Compton Petroleum I like Compton for the following reasons; Sale of Mazeppa and Gladys gas plants and resulting agreement with Dynegy. Joint venture agreements with Mobil & PanCanadian & resulting large acreage exposure. Production is 95% Natural Gas & Gas Liquids. Company is debt free. 13 year reserve life. ---------------------------------------------------------------------- I don't know about them being a takeover candidate. I imagine a small intermediate or larger junior oil could be interested, primarily for exposure to a large quality acreage position. The company has been able to reflect sound reserve and production increases over the past few years and such growth is expected to continued over the next 12 to 18 months. Projected cash flow for 1999 will be in the neighborhood of $0.30. If shares drop to the $1.20 level again, you would only be paying 4X estimate 1999 cash flow. With the activity that lies ahead of the company, 4X 1999 CF is attractive. When the oil and gas outlook turns positive, the CF multiple should increase to 6X. If the company was to forecast year 2000 CF at $0.40, shares could double in value by the end of next year. Although the investment could be considered speculative in nature, I believe there is a strong operational and financial base beneath the company to ease one's mind about the future direction of the markets and how individual stocks will behave. I would not hesitate to pick up shares if price weakens to recent lows.