Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Check who wrote (1087)	12/16/1998 9:18:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15703

Check / Due Diligence If one is determining how to play this venture, it narrows down to what your investment objectives are. How much risk does one want to inherit with their investment. The way I see it, there are three levels of investment risk that are available to us. The principle factor is overview of individual operations of the companies involved. This is how I grouped the companies. Group 1 .... Berkley Petroleum-Paramount Resources Group 2 .... Elk Point Reosurces-Richland Petroleum-Westminster Resources Group 3 .... Hilton Petroleum-Kookaburra Resources-Stanford Oil & Gas Group 1 .... consists of companies whose market capitalization reflects on-going proven expertise in other areas of operations. Both are considered very good operators and the growth of the companies over the past few years can be considered excellent. Success at Lost Hills would enhance their asset base and the downside risk regarding failure at Lost Hills is minimum. Group 2 .... consists of what are known as Canadian Junior Oils. They also have proven operational experience in other focused core areas. Failure at Lost Hills would impact shares of these companies to a much greater degree than Group 1. However, if shares of these companies drift downward with the overall industry group, they will become very attractive candidates for investment based upon value of their total assets and thus, risk is greatly reduced regarding failure at Lost Hills. Add this situation to potential upside due to Lost Hills will leave one with a pretty darn good leveraged investment. Group 3 .... consists of what I will classify as the mini oil's. The future of their operations are dependent upon the success or failure at Lost Hills. Thus, one inherits a very high degree of downside risk when investing into these shares. At the same time, the upside potential of share value is greater than the other two groups. So, bottom line is one's consideration of their own risk/tolerence levels and their short to long term investing objectives. One should not throw caution to the wind for there is always a potential downside lurking any investment. The Lost Hills play is an exciting, unfurling event and one to watch with keen interest. The only real caution that I'm safeguarding, is not to allow myself to get caught up into the frenzy of the excitement itself. Lost Hills is not a short story. It will be an on-going saga for some time. Some investors who follow the trading in their invested companies on a daily basis are in for a roller coaster ride. There is not a story behind every days trading pattern. But, there is a story behind the "significant" developements of the play as they occur in time.