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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: JungleInvestor who wrote (43200)	4/27/1999 12:49:00 PM
From: Area51	Respond to of 95453

I wanted to keep your question regarding HEC active as I am also interested in this. I took a small position last week. I remember watching it run up to $7 last year on prospects for Columbian properties. The recent news seems promising;(1) first production from Palo Blanco pipeline started 4/15/99 and will apparently significantly increase revenues; (2)Apparently working on World bank approval to do more drilling in Columbia; (3) One post on yahoo indicated that the government was allowing external drilling firms to share more in the revenues to spur more drilling; (4) Positive cash flow for 12/99 qtr and year. I remember Slider liked this late last year at about this same price. Since oil has run up I would think he likes it more now. Maybe he'll take off his black hat and share some knowledge here <g>. On the negative side it has only a small about of revenues; Price to sales ratio is about 25 but probably they are just starting (for comparison PZE has a price/sales of about 1). Also Columbian political risk is a negative. I get confused reading the balance sheets of oil exploration and production companies, as I don't understand how they value there reserves. As a result I am underweight these companies relative to drillers. Anyone know some exploration firms that have used low oil prices in valuing there reserves that would make them way undervalued? Good luck to all, Garry