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Gold/Mining/Energy : Strictly: Oil and Gas Exploration Companies -- Ignore unavailable to you. Want to Upgrade?

To: Robert T. Quasius who wrote (175)	4/24/1999 4:43:00 PM
From: Ronald J. Clark	Read Replies (1) \| Respond to of 318

Take a look at TMR (Meridian Resouces). This company has plenty of debt, however, two recent discoveries in Louisiana look to have doubled their reserves and vastly increased their cash flow for 1999. Take a look at Bear Stearns recent research paper (raised to buy from accumulate last Friday 4/23/99). This company has great potential having acquired last year all of Shell Oil's onshore Lousiana oil and gas properties and entered into a joint venture with Louisiana Land & Exploration to develope their vast acreage. Ron Clark

To: Robert T. Quasius who wrote (175)	4/24/1999 4:47:00 PM
From: PuddleGlum	Read Replies (1) \| Respond to of 318

Robert- The most heavily leveraged companies MUST offer the best payback in return for the risk. APA just issued their annual report, and their management began preparing for a downturn in mid- or late-1997. Consequently, they have plenty of resources available for drilling or acquisitions. Where was SFY sitting the last time we had $17-18 oil? Maybe $17-20 per share? APA could pick up many undercapitalized damaged companies at this point and still not be overpaying. I agree with Mark on his concept of "flowers dying in the Spring", and am inclined to put my $$$ into very solid companies like APA and APC. APC has a tremendous amount of production coming on line just from recent discoveries that are being developed. These companies are more expensive, but I think that you're paying for good management that will reward you over time. Highly leveraged companies may give you a lead out of the gate, but the others will give you the best returns over time. pg

To: Robert T. Quasius who wrote (175)	4/25/1999 8:42:00 AM
From: Mark	Read Replies (1) \| Respond to of 318

I think most of the E&P companies have basically minimized drilling activities, not just the small or micro players suffering from the low prices. I'm not sure I know what you mean by "damaged". These companies continue to produce as usual, only now with much better cash flow and earnings. OK, so let me get this straight. You seem to be arguing that the down-turn has actually improved profitability for these companies ? :) Actually, I'm just teasing, and I do know what you mean. However I also think it's taking a very short term view. You must surely agree that the cut-backs in drilling must mean that many of these companies have damaged their future ability to produce (or at least to maintain their growth trends in the mid-term future). Or was there so much excess drilling activity over the last few years that even the worst placed company just has to uncork a few spare wells that they've stockpiled for a rainy day? :) I think what this basically reveals is that we are using two different ways to play this down-turn. i.e. Either treat it as a recovery play, and buy those stocks that folks have worried will fail, OR, use this as a value play to buy the better growth companies at discount prices. I think I'm with PG on this one! (I just wish I'd bought PTEN a few weeks ago, which seems to have afforded a great combination of both strategies). Mark