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: Bearcatbob who wrote (2472)	5/14/1999 8:10:00 AM
From: Check	Respond to of 15703

<<Just makes me wonder if I missed something with my DD.>> Perhaps the fact that when oil was tanking, there was a huge premium put on pure gas plays? Without ELH, WML is anything but cheap, but I don't want to harp on it here because some fans get upset. But do check their debt to cashflow and you'll understand why they are selling some of their gas producing properties in order to stay in the Kern County play.

To: Bearcatbob who wrote (2472)	5/15/1999 9:20:00 PM
From: Kerm Yerman	Respond to of 15703

Bob / Westminster Resources I don't see anything wrong with your due diligence. I think WMl is highly leveraged to the ELH play, and I'm not referring to just the current activity. I don't visit this thread much often, or any thread for that matter, so I'm not up to snuff on stuff. I saw the chart you mentioned and I did find it interesting - but that's about it. Time to re-focus? I think one has to go back to what they were doing early on at this thread. That was forecasting net asset values based upon current and upcoming events built around pricing assumptions. Someone provided this early on and did a fairly good job at it. Back in February, forecasting net asset values was fairly easy back of the envelope calculating for the players were all on the same playing field. That's not the case anymore is it? I don't know myself - perhaps somebody can bring me up to date. It would appear to me that this type task is a little bit more complex now. Based upon the news releases I've seen, planned activities over the balance of the year are different for some of the companies. And, aren't there more companies planning activity in deep plays there now. Obviously, I got lost in the shuffle. Bottom line is, each company has to be evaluated based upon their individual plans of activity and then relate that to a projected net asset value per share for 12 and 24 months out in time. That will be the big factor in driving shares of these companies. After that task is performed, go back and see if these companies need added equity over cash flow to support drilling plans. You will have to make an assumption for share dilution and re-adjust your net asset value per share numbers. As for the dull share performance of some of these companies since February, it is my belief it's due to the lull of the period which has taken investors interests elsewhere. Investors, as a group, are fickle. They expect action on a daily basis. The relief well (Bellevue #1R) is being cased for final kill operations to take place shortly on the Bellevue #1 well, which blew out and caught fire in November 1998. There will probably be more trading action as this event unfurls - but I will view it as only a progress report. The real action will commence when they begin drilling to test the Temblor sands. Just one person's opinion, this time it was mine.