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

To: Richard Saunders who wrote (5503)	10/20/1998 8:46:00 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 24892

Richard, BZG, even after the pop, is selling for < one-third of break-up value and less than 2 x '99 cash flow. Even with _conservative assumptions regarding exploration success, this stock has the kind of prospects currently in hand that could take it to US$7 a share.This is by far the most undervalued O&G company I have ever seen in my 5 yrs. of investing in this area (not including political risk situations or companies on the verge of bankruptcy). For anyone interested in this company, I would strongly recommend getting a copy of a report prepared by Chuck Strain, noted US O&G analyst, dated 9/28/98, which is an excellent discussion of the fundamentals of this company. Call my buddy Mark Kahil, BZG IR guy, at 713-739-0351 and he can mail or fax you a copy. The reason the stock is so undervalued is that is an "orphan" of both countries. The US investors don't want to have anything to do with a VSE stock. The CAN investors are not interested in a stock that does not do any drilling either in Canada or some exotic foreign locale. This problem is about to be addressed. The company has registered its stock to trade in the US. That prospectus is expected to become effective within the next month. Sometime in the next week or so the company will announce a reverse split of its shares, to allow it to meet the minimum stock price requirements to get on the Amex. I own a ton of this stock, most of which has been bought over the last few days. I know Mark from his last job, IR guy for a US microcap called Midland Resources. If you are interested in this company you oughtta do you homework in the next week or so. I believe they will be announcing the reverse some time next week. Normally there is a knee-jerk reaction on such an announcement, where the stock trades sharply lower. This is the time to be ready to pull the trigger. The reason is that in two weeks they should be at total depth in an offset well to their biggest well to date in their Oakvale Dome field, which is a deep salt dome play. The first well is cranking out 10 mmcf a day of gas and this well they're drilling now is 1200 feet closer to the salt! And then a couple of weeks after that we hear how another development well did in this field --- this one will go a long way toward proving up a field that Strain estimates could have up to 195 BCF of gas gross! BZG has an average working interest of 64% of this field. I could talk about this forever but this is enough for now. For further questions I'd suggest moving over to the Benz thread so as not to flood up this one.