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

To: Goldberry who wrote (5553)	11/6/1998 7:42:00 PM
From: Kerm Yerman	Read Replies (2) \| Respond to of 24925

Graham / Crestar Energy I also like Crestar, along with Ulster Petroleums, Paramount Resources, Rio Alto Exploration, Northrock Resources, Chieftain International and Bonavista Petroleum . Another company I like, which is not on my listing, is Alberta Energy. It's amazing how strong the shares have been in this bad period for producers. I've been watching the company's shares to buy into the company, but right now it appears to be too high to provide a good profit over the intermediate term. Long term, it's a great holding. I also like Canadian Occidental Petroleum, but they are oil price prone, thus the intermediate period is not all that great. In regards to Vermilion Resources, their purchase of the private Canadian company, whose principal asset is a crude oil property, doesn't appear negative to me at all. This is their second major acquisition and their first (French Properties) is what I defined before as one of the wisest acquisitions in the near past. This current acquisition involves operated property located in northern Alberta produces light crude oil, has an average working interest of 55% in over 52,000 gross acres of land, includes an operated battery capable of processing 13,000 barrels of crude oil per day, an associated gas facility, and an extensive infrastructure of roads and pipelines. This property represents a new core area for the Company, and Vermilion views it as having significant exploration, development and exploitation potential for both crude oil and natural gas. This is my view at the present. We are in a time where companies, with the cash flow or lines of credit, should be building their acreage position in light crude properties. While the price of oil remains under $16.00, they can work the land (seismic, etc) and perform a high level of exploitation on it. When oil prices improve, they will be in position to immediately explore and develope the acreage. I like this type situation. One last point. I noticed that the company mentioned potential on this acreage for natural gas. I don't know if this is window dressing for the times or if it is really meaningful. In any event, I'm sure they intend to exploit the acreage very near term to increase existing production there. This oil price prone company have seen their shares drop dramatically due to this oil pricing scenario and as a result, shares offer great upside potential over the intermediate to longer term - for they are on firm footing. One last point worth mentioning. If I was to single out one company for one's due diligence, I would select Genesis Exploration. It fits my personal investment objectives well. I give them top marks for property, management and progress. Watch for their report in about two weeks.