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

To: BigBull who wrote (44394)	5/10/1999 9:24:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

The last time I will pound the table on MEXP - here's why; We have seen a trend of late; that being the positive enviroment for financial restructuring by debt laden companies, or those impaired by non - cash asset impairment writedowns that have triggered ''technical'' bank covenant violations. MEXP has 5 year 60% production & cash flow appreciation potential. They sit on an excellent and balanced portfolio of low risk Nat Gas plays. They are extrememly leveraged to this run in Gas prices. This is still -- ''The Play'' in the E&P Universe. It is very quickly, no longer remaining a secret - just as the niche play in ''beating the crowd to the Party'' on these companies before they announce their new financing, is no longer remaining a secret.... still time to beat the crowd on this one,- but the clock is ticking... We saw Ron Insana of CNBC asking his guest Friday about the micro cap E&P's, the article in Market Watch where one analyst called this niche the best play in the oilpatch; and now today; the "Street.Com'' has discovered the single highest return potential - ''niche play'' of late. Article below; by Herb Greenberg. I am not exaggerating the upside that is still left here for MEXP. This is still in the first/second inning of this play. MEXP will blow to $4 and $6 will be seen, sooner than anyone may believe. This one has the properties, the past valuation support and the nearterm expectations from new financing to support these levels virtually overnight.... gee, ''overnight'' ? - CNBC news friday, TheStreet.Com today.... get the message ? ...yet another reason to subscribe to TSC: thestreet.com ******************************************************************************* Herb Greenberg; Taken a look at the number of restructuring deals in the oil patch lately? In recent months a number of companies, including KCS Energy (KCS:NYSE), Trico Marine Services (TMAR:Nasdaq) and Key Energy (KEG:NYSE), have announced deals geared toward paring down their debt. In each case, slumping oil prices had hurt the company's business, but the problems were magnified by the addition of too much debt right as prices started to fall. With oil and gas prices on the rise, deal makers are starting to get involved. "Natural gas is natural gas," explains one veteran oil industry investor. "It's a fungible commodity. Just because a company has lots of debt is why it's valued lower than a company with less debt. But if you can take that debt away, you have no balance sheet risk. Then all you have is the value of the reserves, and the intrinsic value of the company will be valued in the stock market." A growing number of companies are getting their balance sheets cleaned up by financiers. "The whole damn industry has been restructured in six months," says this veteran investor, who cites other deals involving such companies as Nuevo Energy (NEV:NYSE) and Pioneer Natural Resources (PDX:NYSE). He adds, "If all of these companies get restructured and have liquidity, then what will they do with their liquidity? They'll drill!" Which brings us to Colorado billionaire Philip Anschutz, another longtime oil industry investor who is known for his good timing, shrewd judgment and a record for doing things right. It's no secret among oil industry insiders that he intends to buy up distressed oil and gas properties. He has already become one of the largest bondholders in Forcenergy ( FENYQ:OTC BB), which has filed for Chapter 11 reorganization. And he holds a controlling stake in Forest Oil (FST:NYSE). In recent weeks there has been growing chatter than Anschutz has told Forest that he could be willing to make available to Forest as much as $500 million for oil patch investments. In essence, that would make Forest his public oil industry vehicle. A Forest spokesman, not confirming any dollar figure, says Anschutz has only said that he may invest with Forest. "He has no pre-arranged deal with us," he says. He adds that Anschutz may invest through his private oil and gas partnerships or by giving the money directly to Forest and allowing Forest to make oil patch investments, or some combination thereof. Considering Anschutz's role with Forcenergy, there is some speculation that he is negotiating to buy Forcenergy. However, one source close to Forcenergy's bondholder committee warns about jumping to that conclusion. Apparently, there are a number of bidders. And this tip to potential investors, who think a deal for Forcenergy makes its stock a no-brainer: Remember, bondholders get first dibs on the money; shareholders in bankruptcy reorganizations usually get zip, or close to it. Forcenergy did not return a call. ***************************************************************************** MEXP - get it done and get it done now - period. A buy through $4 and even at $6 is still grossly undervalued. This had a 12 month price target of $15 mere months ago. Buy this accounting anomaly and do not delay.... this ''niche'' is getting the spotlight here... Do the ''DD" here's MEXP's WWW link: mexp.com Trade if you desire - the volume has allready given any sellers an easy out of late; daytraders may add volatility here - just ignore it. This company is a ''Buy & Hold'' play - the company has been in business for 70 years and will NOT disappoint. Huge insider holdings and there is no reasonable scenario for failure here.