Sector Plays (SECTOR)

[the big guy]

hi. New to the board. Interests are Canadian high-tech stocks...

[no3putts1]

Dot-coms to test IPO market

If Google goes public, analysts say floodgates could open once again


By Jennifer Davies
STAFF WRITER

September 28, 2003



Dot-coms are going public again.

No, that's not an April Fools' Day joke.

Internet companies really are looking to conduct initial public offerings and raise millions of dollars from investors.

While it is just a smattering of dot-coms that have filed for IPOs, the market has thawed to the point where the much-maligned Internet companies can talk about the idea without it seeming like a punch line.

"There is a new wave of dot-coms," said Jeffrey R. Hirschkorn, senior analyst at the IPO Monitor, a national newsletter tracking the IPO market. "These are companies that can make money."

Just last week, Red Envelope, a specialty online retailer, went public, raising some $75 million. While Red Envelope's stock failed to skyrocket like the Internet IPOs of a few years ago, the shares, which went out at $14, hovered in that range in its first week of trading.

And there are other companies waiting in the wings. Orbitz, the travel site, recently filed for an IPO, as did San Diego company Provide Commerce, formerly known as Proflowers.com, an online flower delivery business.

Provide Commerce filed last week, hoping to raise $75 million to expand its business into other areas. Provide Commerce plans to launch two businesses that rely on the timely delivery of perishable items. The company's Uptown Prime will offer premium meats and compete against such companies as Omaha Steaks, and its Cherry Moon Farms brand will offer fresh fruits and compete against such companies as Harry and David.

Chris Woolley, managing director of Comerica Bank's technology and life sciences business, said the return of the Internet IPO is not so surprising.

"The public market for all types of companies but particularly for Internet and high-tech companies have been closed for years, so there is this whole backlog of quality companies waiting for the chance to do an IPO," he said.

Scott Kessler, an Internet and software analyst for Standard & Poor's, who recently wrote a report on the Internet's rebound, agreed that the dot-com bust is now helping the companies that remained in business.

"The Internet sector shakeout of the past several years has left surviving dot-coms with less competition and greater pricing power," Kessler said.

The performance of established Internet companies and their increasing stock price has also helped boost the industry's overall image, Hirschkorn said.

Yahoo!, one of the pioneers of the Internet, has seen its share price jump in the last year from less than $9 to about $35. Amazon.com, the well-known online bookseller, has also seen its share price perform well, with its stock rising from $15 last fall to close last week above $48.

"That is very key because people look at them as a barometer," Hirschkorn said.

But the real sign that the dot-com comeback is official will be when mammoth but private Internet companies, such as Google, decide to access the public markets. The wildly successful search engine company, which many estimate has annual revenue of nearly $1 billion, has denied any interest in going public. That hasn't stopped analysts from speculating about the possibility, predicting Google will conduct an IPO in the early part of 2004.

"Google is really the next big thing," Hirschkorn said.

Woolley agreed that an IPO by Google could really open the floodgates for other Internet and high-tech companies.

The potential danger of that success is that it could breed copycat companies of lesser quality. If the IPO market is once again awash in iffy dot-coms that don't have strong profits and an equally strong and sustainable business model, it could stop the fledgling signs of recovery.

"The risk is going to be all the me-too guys that come along," said Woolley.

The key to a sustained recovery of the Internet IPO market will have a lot to do with the stocks' performances over time.

"If some of these are unsuccessful in the after-market when they go out at $10 and then drop to $8 to $6 to $4 to $2, that would have a real damper," Woolley said. "If there are good performances, that go out at $10 and then goes up to $12, $14 in a matter of weeks or months, there are companies that are going to dip their toes in the water."

Red Envelope's flat performance makes it unclear how receptive investors will be to Internet companies. While Hirschkorn said its stable performance is a strong sign, other analysts raised concerns about the company because it has not yet made money. For the fiscal quarter ended June 30, Red Envelope reported a loss of $1.2 million on revenue of $17.7 million. For the same quarter last year, the company had losses of $2.3 million on revenue of $15.3 million.

Red Envelope is hardly the only money-losing dot-com looking to raise money through the public markets. Orbitz, the Internet travel site founded by five of the major airlines, has yet to turn a profit but is looking to raise $125 million from a public offering. In its IPO filing, the company said it had revenue of $175.5 million in 2002, with a net loss to $17.9 million, an improvement over the previous year when it had revenue of $43.4 million and a net loss of $103.2 million.

That kind of financial performance may dissuade average investors from taking another chance on a dot-com.

"The history is what it is. There is a bad taste left in a lot of investors' mouths," Woolley said. "It's really more about getting the professional investors who are a little less tied up in the 'Gosh, I was burned once. I'm never going to try that again.' "

http://www.signonsandiego.com/news/uniontrib/sun/business/news_1b28ipo.html

[no3putts1]

Fool's gold?

Stocks and mutual funds featuring the precious metal are up sharply since 2001, but the investment is not without risk


By Rachel Beck
ASSOCIATED PRESS

September 28, 2003


Gold investors think they've found a fail-safe bet. No matter what happens to the economy, stock market or anything else – good or bad – they count on seeing positive returns.

That's why investors have been pouring big money into gold and gold stocks, a big switch from the not-so-distant past when they shunned gold in favor of higher-flying investments.

It's still unclear, though, if gold is really so safe.

Gold began its climb in 2001, just as the global economy and stock market began to slump. Its strength intensified in the months before the war in Iraq, surpassing $380 an ounce – its highest level in seven years. And after an initial post-war retreat, gold bounced back.

Now, as some analysts forecast a climb above $400, market-watchers acknowledge that they've been surprised by its current strength.

For one thing, gold has largely been following the path of the euro, the currency representing 12 European nations that has been gaining against the U.S. dollar over the last year. But the euro weakened this summer, while the dollar strengthened, and gold prices surged higher.

And then, just this past week, the dollar tumbled, but gold continued to climb.

There has also been a positive turn in both the U.S. stock market and economy. Since gold is considered a safe-haven asset, investors historically have pulled out when those areas improve.

But so far this year, gold stocks are up sharply, and precious metals mutual funds, which include gold, have soared 25 percent, solidly outperforming the 17 percent gain in the Standard & Poor's 500 stock index.

And those gains add on to last year's 63 percent rise in precious metals funds, the best performing fund category in the market and a sharp contrast to the 23 percent decline in the S&P 500, according to fund-tracker Morningstar.

"Gold prices should be down, and gold stocks should be down, but they keep going up," said John H. Hill, a former geologist turned vice president of equity research at Citigroup's Smith Barney investment division.

Still, gold isn't without risks.

Future gains might be limited because there already has been such a big run-up in price – it has climbed from $260 an ounce since early 2001.

And price gains have largely been fueled by speculation, not because of any significant shift in physical demand.

Gold stocks also can be very volatile. While they can benefit greatly should the price of gold continue to rise, they can tumble if there is any turmoil in areas of the world where gold companies mine.

A final reminder to gold investors: Two decades ago, gold was trading at more than $800, and it was supposed to keep rising. Today, it's less than half of that.

http://www.signonsandiego.com/news/uniontrib/sun/business/news_mz1b28gold.html

[excel]

Lack of gas sets back $1.6 bln Canada-U.S. pipeline
Thursday August 21, 3:53 pm ET


SAN FRANCISCO, Aug 21 (Reuters) - Disappointing results in the search for natural gas off Nova Scotia is holding back El Paso Corp. (NYSE:EP - News) plans to build a giant $1.6 billion pipeline stretching into the U.S. Northeast, El Paso said on Thursday.
"We have completed most of our environmental studies and engineering plans for the pipeline, but continuing the process will require the discovery of natural gas," said Aaron Woods, an El Paso spokesman.

"We were optimistic that gas producers would discover gas last summer and that has not happened," he added.

Woods said El Paso was still working with environmental groups and fishing community for the roughly 1,000-mile (1,600-km) pipeline aimed at delivering about 1 billion cubic feet of gas a day from Nova Scotia to power plants and industrial gas users in the New York region.

Houston-based El Paso announced plans for the 36-inch to 42-inch diameter pipeline in October 2001, at which time the company said it hoped to have the project in commercial service around 2005-2006.

But that timeline is unlikely to be met as El Paso said it expects the project will require a total of four years to receive all regulatory permits and to build the pipeline.

Development of Nova Scotia's offshore gas fields has been hit with a string of setbacks, including several expensive dry holes and EnCana Corp.'s (Toronto:ECA.TO - News) decision earlier this year to put the brakes on its C$1.1 billion Deep Panuke project.

Nova Scotia authorities estimate the deep water region off the coast could contain 15 trillion to 40 trillion cubic feet of gas, but finding those reserves has been elusive.

El Paso is working with several gas producers with drilling experience in the Nova Scotia region, but has not signed contracts with any of them, Woods said. ($1=$1.40 Canadian) (with additional reporting by Jeffrey Jones,[phone])

[excel]

Reliance on natural gas sets off series of problems
09:03 AM CDT on Tuesday, August 19, 2003

By SUDEEP REDDY / The Dallas Morning News

It seemed like the perfect fuel for electricity generation. Natural gas was domestic, environmentally friendly and cheap.

But the nation's rapid shift toward natural gas in the last decade is coming back to haunt consumers and the economy.

The latest blow is expected this week as TXU Corp., the state's largest electric company, is set to receive a rate increase because of higher natural gas prices, which would send electric bills to record levels.

The problem's roots have been visible for years. Natural gas demand is rising quickly, due largely to a wave of new gas-fired power plants, and the commodity's supply has failed to keep up.

To make matters worse, an even deeper natural gas crisis looms on the horizon. Though last week's massive blackout drew widespread attention to transmission grids, fears about gas shortages have been at the top of the industry's list of worries for this winter – and years ahead.

To some experts, natural gas simply became too popular, not just for power plants, but also for factories, vehicles and a slew of other everyday uses.

"In one way, we have a disconnect," said Mark Baxter, director of Southern Methodist University's Maguire Energy Institute. "We're telling you it's efficient and clean. But we're telling people they can't drill for it" in many parts of the country.

Throughout most of the 1990s, natural gas prices hovered near $2 per million British thermal units. After spiking to $10 twice in three years, natural gas sells for about $5 per million BTUs today – double what it was a year ago.

This isn't the first time that consumers and policy-makers have struggled with a natural gas crisis. Before the 1970s, most Texas utilities generated all of their power from natural gas.

When commodity prices skyrocketed with the energy crisis of 1973, "we learned the folly of that situation," said Erle Nye, chairman and chief executive of Dallas-based TXU. "This state went from complete reliance on natural gas to a much more balanced portfolio."

Waves of coal and nuclear plants came online in Texas and across the country, bringing natural gas' share far lower than before.
But amid environmental concerns in the 1990s, gas-fired plants were the only new generation facilities receiving widespread support for permitting and financing.

Developers built power plants producing about 200,000 megawatts in the United States and Canada in the last five years, the equivalent of some 400 power plants, according to Cambridge Energy Research Associates. Ninety-five percent of those were fired by natural gas.

More than half of Texas' electricity came from natural gas in 2000, according to federal data. Nationally, natural gas fueled about a sixth of all power in the same year, with coal taking the biggest share followed by nuclear plants.

Though residential and business electric bills are generally higher in Texas due to greater consumption, in the 1990s the per-kilowatt-hour rates had been slightly below the national average.

The TXU rate increase, set to go before the Texas Public Utility Commission for approval Thursday, would send electric bills for about 2 million residential customers in North Texas to their highest points ever.

An average residential TXU customer who uses 1,000 kilowatt-hours of electricity each month would pay almost $101 a month. A year ago – before natural gas prices led to the first of three rate increases – that bill would have been about $83 a month, more than 20 percent lower.

Under deregulation, consumers can pay less by switching to competing providers. Critics of deregulation charge that the rates of incumbent utilities are higher than they would have been under regulation, but nobody denies that higher natural gas prices are pushing electric rates up for everyone.

Just about every state will feel the impact of higher electricity rates due to natural gas. A handful – Alaska, California, Maine and Rhode Island – also generate more than half of their power from gas, according to the U.S. Energy Information Administration.

Some Texas firms, such as those in the petrochemical or fertilizer industries that use natural gas as a feedstock, have been suffering for months. That sector of the economy is expected to face the greatest permanent damage from high natural gas prices, as factories move overseas to cut costs.

Other types of businesses consider electricity rates when building plants or relocating employees, and the effects of those concerns have yet to surface.

"It may be the case that our advantages in electricity may not be quite as strong as they were a few years ago, because we're competing against states for some of our growth that don't use as much natural gas," said Stephen Brown, director of energy economics at the Federal Reserve Bank of Dallas.

Perks from drilling


Texas' overall economy may not take as much of a hit as other states. As the nation's top producer of natural gas, the higher commodity prices can help Texas companies that drill and produce gas.
"Rising natural gas prices mean higher income for existing gas production in Texas," Mr. Brown said.

Most state officials haven't spent much time talking about higher electricity rates yet, said PUC Chairman Rebecca Klein.

"I think we're just learning the risk that gas dependency causes," she said. "I do hope that over the course of time that policy-makers take a look at the merits and demerits of Texas' being so dependent on gas."

Both the PUC and Texas Railroad Commission, which oversees the state's natural gas industry, plan to study the interactions between the gas and power sectors, in reaction to the February winter storm that depleted natural gas supplies and sent wholesale power prices soaring.
For a commodity so dependent on the weather, the storm exposed the difficult balancing act that the oil and gas markets face as they try to match supply with demand.

"A hundred thousand barrels over, and you've got a surplus. A hundred thousand under, and you've got a panic," said Boone Pickens, the longtime oil and gas producer who now runs Dallas-based BP Capital, an investment firm.

With so many new power plants trying to secure gas supplies to operate, shortages seem almost inevitable now. "Where's the gas going to come from?" Mr. Pickens asked. "They act like it's automatic that the gas is going to show up."

Today's impending natural gas crisis shouldn't be a total surprise. Prices spiked sharply in the winter of 2000, exposing for the first time in decades the nation's reliance on gas.

"The spikes that we had two years ago were a watershed event in that it showed how tightly balanced this market was," said Michael Zenker, a senior director at Cambridge Energy Research Associates.

Higher prices led to increased drilling by producers, and prices fell largely due to milder weather. But those lower prices led to another drop in drilling – and then a price spike earlier this year amid tight supplies.

After draining the nation's natural gas supplies, producers and utilities have been in a summer rush to store enough gas to meet the heavy winter heating demand. Supplies have increased, but the amount of natural gas in storage facilities is still 16 percent lower than it was a year ago.

Lasting effects


Most analysts expect high prices to remain for at least two to four years, as the effects of increased drilling hit the market and imports of liquefied natural gas, or LNG, start transforming what has been a largely domestic market. That means little can be done to prevent a fresh spike in prices this winter that would send electricity and heating bills soaring even more.
Lawmakers have expressed growing concern about the natural gas situation, calling on Alan Greenspan, the ever-influential Federal Reserve chairman, several times this year to highlight the issue and the impact on the economy.

And as Congress debates an energy bill to open up federal lands for drilling or encourage new energy sources, comparisons to the 1970s crises ravaging the nation's economy are not entirely forgotten.

"Every major energy policy in this country has followed an energy crisis of some form or another," Mr. Zenker said.

Some energy plans have already started changing due, in part, to higher natural gas prices. Three U.S. utilities are preparing applications to build the nation's first new nuclear reactors since the 1970s. Dozens of new coal plants have been proposed, including one by San Antonio's municipal utility. And wind power is becoming more competitive than ever.

"Diversity of fuel sources is absolutely key," said Mr. Nye of TXU. "You need to play all of the levers. ... Gas is a premium fuel, and you shouldn't put all your eggs in that basket."

But even with all of natural gas' faults today, experts say, there's little that will reverse the nation's growing dependence on the energy source.

"We're here to live with natural gas for a while," said Mr. Baxter of SMU. "I don't see it as a bad thing, but it's a short-term heartache for consumers."

[dilt1]

intersting site for LNG gas....
http://www.lnghub.com/pages/1/index.htm

[excel]

Gas has gone up around .20 around my area in very short time.

Saboteurs Hit Iraqi Oil, Water Supply
25 minutes ago

By D'ARCY DORAN, Associated Press Writer



BAGHDAD, Iraq - Saboteurs blew up a water main in northern Baghdad on Sunday, forcing engineers to cut off water to the entire capital and raising new concerns that insurgents are hitting Iraq (news - web sites)'s infrastructure to slow its recovery.

The water main bombing came as two oil fires raged out of control along an oil pipeline to Turkey, halting exports just days after they started. The first blaze appeared to be sabotage, a coalition spokesman said.


In new violence, a mortar attack on a Baghdad prison being used by the United States killed six Iraqis. Hours later, a cameraman for the Reuters news agency was mistakenly shot and killed by U.S. soldiers while filming outside the prison.


A new group of resistance fighters has said they would battle the U.S.-led occupation whether or not it helps rebuild the country.


Sunday's explosion in northern Baghdad blew a hole in a 5-foot-diameter water main, flooding streets. People waded through chest-high water in some areas. Witnesses said two men on a motorbike left a bag of explosives and detonated it minutes later.


"It was an act of sabotage," said Majid Noufel, a Baghdad water company engineer. "We've had to stop pumping water to the whole city so we can fix the damage."


Residents, finding their taps dry, rushed to buy bottled water but many stores ran out.


"I couldn't find any water to wash the clothes," lamented housewife Amira Ali, 46. "The next few days we're really going to suffer."


A new group of resistance fighters, the Iraqi National Islamic Resistance Movement, said in a videotaped aired on the Al-Jazeera television network that they would battle the occupying troops even if the U.S.-led coalition helps Iraq recover from war.


"This resistance is not a reaction to the American provocations against the Iraqi people or to the shortage of services, as some analysts believe ... but to kick out the occupiers as a matter of principle," a man read from a statement.


He sat with several other men holding grenade launchers and Kalashnikov automatic rifles. All had their faces covered with checkered headscarves.


U.S. military spokesman Spc. Anthony Reinoso said Sunday that someone fired two mortar rounds at the notorious Abu Ghraib prison the previous night, killing six Iraqis and wounding 58. He didn't know whether the casualties were guards or prisoners, or who was responsible.


The motivation was unclear. Abu Ghraib, where Saddam's regime executed political prisoners and others, is being used by Iraq's U.S. occupiers to house high-security criminals. U.S. troops at and near the prison have been attacked in past months.


Reuters cameraman Mazen Dana, 41, was filming outside the prison when he was shot by U.S. soldiers.


The videotape in Dana's camera showed two U.S. tanks coming toward him. Two shots were fired, apparently from the tanks, and Dana fell to the ground. He was taken away by a U.S. helicopter for treatment.


A U.S. military official said on condition of anonymity that American soldiers saw Dana from a distance and mistook him for an Iraqi guerrilla, so they opened fire. When the soldiers came closer, they realized Dana was a journalist, the official said.


Stephen Jukes, Reuters' global head of news, said, "Mazen was one of Reuters' finest cameramen and we are devastated by his loss."





Further north, two blazes a few miles apart raged out of control along the 600-mile pipeline exporting Iraq's oil to Turkey.

The first fire began Friday, only two days after oil exports to Turkey resumed, and the second started Saturday night. The fires were 125 miles northeast of Baghdad.

Coalition spokesman Charles Heatly said the first blaze appeared to be sabotage. Police commander Brig. Gen. Ahmed Ibrahim vowed to pursue "a group of conspirators who received money from a particular party" to blow up the pipeline.

Iraqi firefighters watched helplessly as thick, black smoke billowed a quarter-mile into the air. Supervisor Abdul Khaliq Akrum Fatah (news - web sites) said two fires breaking out in such a short stretch of pipeline "is unheard of and very mysterious."

"They have already closed the pipeline, so all we can do is wait for the remaining oil to burn," he said.

Military spokesman Col. Guy Shields said it would take up to two weeks to fix the pipeline.

Iraq has the world's second-largest proven crude reserves, at 112 billion barrels, but its pipelines, pumping stations and oil reservoirs are dilapidated after more than a decade of neglect. Northern Iraq, site of the giant Kirkuk oil fields, accounts for 40 percent of Iraq's oil production.

L. Paul Bremer, the U.S. civilian administrator of Iraq, opened the first meeting of a group that will coordinate international donations to Iraqi reconstruction.

"The irony is that Iraq is a rich country that is temporarily poor," he said. "An event such as the explosion on the Kirkuk pipeline costs the Iraqi people $7 million a day and hurts the process of reconstruction."

He said the group would prepare a list of needed projects for donors to invest in and expected specific pledges at an October conference in Madrid, Spain.

Also Sunday, an Iraqi Governing Council delegation arrived in the United Arab Emirates to begin a regional tour to drum up political cooperation and possible economic aid from fellow Arab countries.

Meanwhile, U.S. troops shut down a major bomb-making facility near Tikrit, arresting two people, Lt. Col. Steve Russell of the 4th Infantry Division said. Troops seized C-4 plastic explosives, mortars, automatic rifles and other equipment.

The Danish army reported one of its soldiers died from a gunshot after stopping a truck of Iraqis on Saturday in southern Iraq. Military authorities said it appeared the soldier was killed by friendly fire. He was the first Dane killed since Denmark sent about 400 soldiers to join the stabilization force around Basra.

Two Iraqis died in the shootout, one was wounded and six were arrested, the Danish army command said.

Near Baquoba, 45 miles north of Baghdad, U.S. forces captured 12 suspected Fedayeen Saddam militia members near a U.S. base, said Lt. Col. Mark Young, commander of 3rd Battalion, 67th Armor Regiment, 4th Infantry Division.

An informer, who lived near the battalion's base at a former Iraqi military camp, told U.S. troops that Fedayeen were in the area, trying to make residents leave before attacking the base, Young said.

___

Associated Press writers Sameer N. Yacoub and Jamie Tarabay in Baghdad contributed to this report.

[excel]

Saboteurs Blow Up Major Iraqi Pipeline
ARCY DORAN
Associated Press Writer
http://seattletimes.nwsource.com/APWires/headlines/D7SV7ON80.html

Saboteurs blew up a giant oil pipeline in northern Iraq, halting oil exports to Turkey only days after they resumed and cutting off vital income for an economy in shambles. The new Iraqi police commander vowed on Saturday to pursue the "conspirators" behind the attack.

Iraqi oil exports to Turkey had begun only on Wednesday, and the explosion early Friday near Baiji, 125 miles northeast of Baghdad, cut them off completely, acting Iraqi oil minister Thamer al-Ghadaban said in Baghdad.

Police Brig. Gen. Ahmed Ibrahim, once imprisoned for speaking out against Saddam Hussein, was appointed Saturday to be the top Iraqi law enforcement official. He blamed the explosion on "a group of conspirators who received money from a particular party," which he didn't identify."With God's help, we will arrest those people and bring them to justice," Ibrahim said. "The damage inflicted on the pipeline is damage done to all Iraqi people."Al-Ghadaban said it would take several days to get the pipeline working again."It is a large pipeline with large volume of crude oil," he said.

The 600-mile pipeline has a diameter of 46 inches. It runs from the northern Iraqi city of Kirkuk to the Turkish city of Ceyhan and handles all oil exports to Turkey."There is no oil flowing into Turkey right now," said Col. Bobby Nicholson, chief engineer for the U.S. Army's 4th Infantry Division.

Oil began flowing through the pipeline on Wednesday, and Turkey's semiofficial Anatolia news agency, citing officials, reported 750,000 barrels were pumped before it was attacked. Turkish officials had earlier blamed the pipeline troubles on "telecommunications problems."Iraq has the world's second-largest proven crude reserves, at 112 billion barrels, but its pipelines, pumping stations and oil reservoirs are dilapidated after more than a decade of neglect. Northern Iraq, site of the giant Kirkuk oil fields, accounts for 40 percent of Iraq's oil production.

Ibrahim was appointed by Bernard Kerik, the former New York police commissioner tasked with rebuilding Iraq's Interior Ministry, as his senior deputy."We're setting up a new police force, bringing in modern weapons and leadership to guard and secure the country, and soon everyone will be safe," he said at a Baghdad news conference.

Ibrahim had been working as head of the Iraqi police's special investigations unit and was shot in the right leg during a police raid last month. As well as the weapons seized, that raid also netted a high-ranking member of the Saddam Fedayeen militia."Gen. Ibrahim's actions reflect tremendous courage, professionalism and dedication to duty," Kerik said in a statement.

Further north, attackers ambushed the police chief of Mosul, wounding him and killing two people, apparently his bodyguards, the U.S. military reported. Fourteen others were wounded, said spokesman Sgt. Danny Martin."It was an ambush at an intersection," Martin said.

Martin said the official, identified only as "Chief Mohammed," was wounded with two bullets in the leg and his condition was not life-threatening.

An American soldier was wounded by shrapnel Saturday when a patrol of Abrams tanks, armored personnel carriers and Humvees was ambushed near Baqouba, 45 miles northeast of Baghdad.

The attackers detonated a roadside bomb made of four 155mm artillery shells, then opened fire with rocket-propelled grenades and automatic weapons, said Capt. Jon Casey of the 4th Infantry Division, who was on the patrol."We engaged them with our own automatic weapons and called in helicopter support," he said. "We had no further contact and secured the area."Soldiers from the 4th Infantry Division conducted 11 raids across north-central Iraq and detained five people, including three suspected regime loyalists and a man who allegedly had threatened to kill a U.S. soldier, MacDonald said.

The division also announced the detention of Said Ali al-Karim, a Baqouba cleric known as "the prophet" it said had urged violence against Americans and financed Saddam loyalists fighting U.S. forces.

It said al-Karim, which it described as "a counselor to Saddam Hussein," was arrested Monday and could be charged with inciting violence, funding attacks and possessing illegal weapons. It gave no explanation for the delay in reporting his arrest.

___

Associated Press Writers Andrew England in Baqouba and Sameer N. Yacoub in Baghdad contributed to this report.

[excel]

Mission Resources Updates Drilling Progress, Announces Second Quarter Earnings and Guidance for Third-Quarter and Total Year 2003 and Updates Hedging Position


HOUSTON--(BUSINESS WIRE)--Aug. 12, 2003--Mission Resources Corporation (NASDAQ:MSSN) today announced further details regarding its 2003 drilling program, a Permian Basin capital update, second quarter earnings and certain financial guidance for the third quarter and full year 2003. Also, an updated table of current hedges is being provided that includes recently executed gas collars for 2005.

"We are very pleased with the initial results of our 2003 drilling program and the ongoing development activities in the Permian Basin," said Robert L. Cavnar, Mission's chairman, president and chief executive officer. "Our internal estimates indicate that our program has successfully replaced production during the first half of 2003, and we expect our 2004 production levels to significantly increase as a result of these first wells. We are continuing to execute our drilling program as well as continuing our efforts to further strengthen Mission's balance sheet."

Drilling Program Update: We have drilled seven wells of our thirteen well 2003 drilling program (one additional well was completed since June 30). Listed below is an update on the five successful projects:

-- Completion operations have started at the previously announced
discovery well in the Marg howei sand in South Louisiana. In
addition to finding pay in the Marg howei sand, the well is
also successful in the Camerina sand. This well is being
completed as a dual zone completion with anticipated gross
production rates of 5 - 15 million cubic feet of gas per day
("MMcf/d"). The Company expects this work to be completed by
early September 2003 with first production immediately
thereafter. Mission holds a 68% working interest in the
Camerina zone and a 77% working interest in the Marg howei
zone.

-- The Mission Resources JL&S #145 in the West Lake Verret Field,
St. Martin Parish, Louisiana, was completed in the "H4" Sand
for a gross production rate of 1.4 million cubic feet
equivalent per day ("Mmcfe/d") at 780 psi flowing tubing
pressure. Mission is the operator of this well and holds a
100% working interest.

-- At the Fontenot #1 in the Reddell Field, Evangeline Parish,
Louisiana, the Lower Wilcox formation tested gas at a gross
rate of 1.1 MMcf/d with 420 psi flowing tubing pressure and is
expected to improve with continued production. The Upper
Wilcox formation tested at a gross rate of .5 MMcf/d with 405
psi flowing tubing pressure. Based on pressure transient
analysis, the Upper Wilcox formation appears to be skin
damaged in the near wellbore region and a stimulation
procedure scheduled for mid-August 2003 should increase gross
production to approximately 2 - 5 MMcf/d. Mission holds a 15%
working interest in this field.

-- The Cabs 2-29 in Beckham County, Oklahoma, is currently
producing at a gross rate of 1.4 MMcfe/d. Mission holds a 10%
working interest in this well.

-- As discussed in our June 30th press release, we drilled the
Eugene Island 284 D-1, an exploratory well located in Federal
waters of the Gulf of Mexico, to a total measured depth of
5,671 feet. The primary objective, the 3500 Stray Sand, flow
tested gas and will be developed with directional wells having
anticipated gross production rates of 7 - 12 Mmcf/d per well.
The operator, Forest Oil Corporation, plans to set a platform
later this year and drill up to five additional development
wells with production scheduled for late first quarter 2004.
Mission holds a 7% working interest in this field.

Mission Resources is currently participating in drilling two exploratory wells in Texas. At the Unit Petroleum Bluntzer #1 well in Goliad County, intermediate casing has been set to 9,800 feet. This well, in which Mission holds a 20% working interest, will be drilled to a total depth of 16,500 feet to test Lower Wilcox objectives. In Hidalgo County, Mission holds a 30% working interest in the United Resources Blackstone #1 well that is currently drilling at 11,000 feet. This well is scheduled to drill to 18,500 feet to test Middle Vicksburg objectives. Both of these wells are anticipated to be at total depth within 30 to 45 days.

We are currently building location at our Davis #1 well in the Backridge Field, Cameron Parish, Louisiana, for a 15,000 foot test of the Abbeville 2 Sand objective scheduled to spud in early September 2003. Mission plans to hold an approximately 60% working interest at the casing point. In the Offshore Region, we expect to participate in drilling two wells in South Marsh Island Block 142, Federal Offshore Gulf of Mexico, starting in late August or early September 2003. Mission holds a 31% working interest in this block. Additionally, at the West Lake Verret Field we are permitting the JL&S #146 well in which Mission holds a 100% working interest. This well is anticipated to target shallow oil zones in our on-going development of this field.

Permian Basin Capital Update: In the Permian Basin, we are very encouraged with the results of two development drilling programs. In Yoakum County, Texas, Mission holds a 36% working interest in the Brahaney Unit. A ten-well infill program has recently been completed resulting in an average initial gross production rate of approximately 50 barrels of oil per day ("Bo/d") per well. In Ector County, Texas, Mission holds a 25% total net revenue interest in the TXL North Unit, which is currently being down-spaced to 10 acres. The average initial gross production rate for the 15 wells drilled to date is approximately 60 Bo/d per well.

Net Earnings: The Company reported a net loss for the second quarter 2003 of $2.9 million or $0.13 per share - diluted compared to a net loss of $6.0 million or $0.25 per share - diluted in the second quarter of 2002. The second quarter ended June 30, 2002 included a $2.7 million loss on the sale of Mission's Ecuador properties and a $2.9 million loss on hedge ineffectiveness.

Net income for the six months ended June 30, 2003 was $7.7 million or $0.33 per share - diluted compared to a net loss of $15.4 million or $0.65 per share - diluted for the same period of 2002. The 2003 period includes a $22.4 million ($14.5 million after tax) non-cash gain related to the purchase in March of $97.6 million of our 10 7/8% notes at a discount to par, and a $1.7 million loss, net of taxes, due to the cumulative effect of change in accounting principle attributable to SFAS No. 143, Accounting for Asset Retirement Obligations.

Production and Revenue: Production for the second quarter of 2003 averaged 10.3 thousand equivalent oil barrels per day ("Mboe/d") and was below the 2002 level of 16.4 Mboe/d. This decrease reflects the asset sales closed in the last half of 2002 and the first quarter of 2003. Second quarter production consisted of 6.2 thousand Bo/d and 24.3 Mmcf/d. The average realized oil price, including the effect of hedges, for the second quarter of 2003 was $25.81 per barrel, an increase of 14% over the $22.60 per barrel realized oil price in the same quarter of 2002. The average realized gas price, including the effect of hedges, in the second quarter of 2003 was $4.42 per Mcf, a 36% increase over the average gas price of $3.25 per Mcf realized in the same quarter of 2002. Oil and gas revenues for the second quarter of 2003 were $24.4 million compared to $31.9 million in the second quarter of 2002.

Earnings before Interest, Taxes and Non-Cash Items and Discretionary Cash Flow: Earnings before interest, taxes and non-cash items for the second quarter of 2003 totaled $10.9 million when compared to the same measure for the second quarter of 2002 of $15.6 million. Discretionary cash flow for the second quarter 2003 totaled $5.0 million compared to $8.6 million in the second quarter of 2002. See the attached schedule for a reconciliation of net income to earnings before interest, taxes and non-cash items and of net cash provided by operating activities to discretionary cash flow.

Hedging Update: Recently Mission entered into gas collars for 1,000 MMBtu per day for the calendar year of 2005 with a floor price of $4.25 per MMBtu and an average ceiling price of $5.28 per MMBtu. See the attached schedule for a detailed list of all current hedges.

Outlook for Third Quarter 2003: Guidance on performance for the third quarter of 2003 follows below:

Estimated Daily Production Daily Average
------------------------------- ---------------------
Crude Oil (Barrels) 5,700 - 6,200
Natural Gas (Mmcf) 23 - 27
Total (Mmcfe) 58 - 63
Total (Boe) 9,700 - 10,500
------------------------------- ---------------------

Operating expenses Per Mcfe Per Boe
------------------------------- --------------------- ----------------
Lease operating expense $1.45 - $1.55 $8.70 - $9.30
Taxes other than income $0.35 - $0.40 $2.10 - $2.40
Depreciation, depletion and
amortization $1.55 - $1.65 $9.30 - $9.90
General and administrative $0.40 - $0.45 $2.40 - $2.70
Cash Interest expense (a) $5.8 - $6.1 million
Federal income tax rate 35 percent, all
deferred
------------------------------- --------------------- ----------------

(a) Excludes noncash interest expense of approximately $700,000
Outlook for Full Year 2003: Guidance on performance for the full year of 2003 is as follows:

Estimated Daily Production Daily Average
------------------------------- ---------------------
Crude Oil (Barrels) 5,800 - 6,100
Natural Gas (Mmcf) 25 - 30
Total (Mmcfe) 60 - 65
Total (Boe) 10,000 - 10,800
------------------------------- ---------------------

Operating expenses Per Mcfe Per Boe
------------------------------- --------------------- ----------------
Lease operating expense $1.45 - $1.55 $8.70 - $9.30
Taxes other than income $0.37 - $0.42 $2.22 - $2.52
Depreciation, depletion and
amortization $1.55 - $1.65 $9.30 - $9.90
General and administrative $0.43 - $0.48 $2.58 - $2.88
Cash Interest expense (b) $23 - $25 million
Federal income tax rate 35 percent, all
deferred
------------------------------- --------------------- ----------------

(b) Excludes noncash interest expense of approximately $1.8 million.


Conference Call Information: Mission will hold its quarterly conference call to discuss second quarter 2003 results on Tuesday, August 12, 2003 at 10:00 a.m. Central Time. To participate, dial 877/894-9681 a few minutes before the call begins. Please reference Mission Resources, conference ID 1685418. The call will also be broadcast live over the Internet from our website at www.mrcorp.com. A replay of the conference call will be available approximately two hours after the end of the call. It will be available until Tuesday, August 26, 2003. To access the replay, dial 800/642-1687 and reference conference ID 1685418. In addition, the call will also be archived on the Company's website.

About Mission Resources: Mission Resources Corporation is a Houston-based independent exploration and production company that drills for, acquires, develops, and produces natural gas and crude oil in East Texas, the Permian Basin of West Texas, along the Texas and Louisiana Gulf Coast and in the Gulf of Mexico.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the Securities and Exchange Commission. Mission undertakes no duty to update or revise these forward-looking statements.

MISSION RESOURCES
STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUES:
Oil revenues $ 14,662 $ 20,451 $ 28,963 $ 39,008
Gas revenues 9,776 11,458 21,212 21,240
Gain on extinguishment of
debt - - 22,375 -
Interest and other income
(expense) 187 (3,643) 722 (9,682)
-------- -------- -------- --------
24,625 28,266 73,272 50,566
-------- -------- -------- --------

COSTS AND EXPENSES:
Lease operating expense 8,364 11,185 17,254 24,349
Taxes other than income 2,152 2,796 4,845 4,729
Transportation costs 102 61 192 138
Asset retirement obligation
accretion expense 343 - 688 -
Loss on asset sales - 2,719 - 2,719
Depreciation, depletion and
amortization 8,904 10,924 17,926 22,199
General and administrative
expenses 2,860 2,433 5,432 5,002
Interest expense 6,432 7,369 12,459 15,055
-------- -------- -------- --------
29,157 37,487 58,796 74,191
-------- -------- -------- --------

INCOME (LOSS) BEFORE TAXES AND
CHANGE IN ACCTG METHOD (4,532) (9,221) 14,476 (23,625)

Income tax expense (benefit)
Current - - 75 -
Deferred (1,586) (3,228) 4,992 (8,269)
-------- -------- -------- --------
(1,586) (3,228) 5,067 (8,269)
-------- -------- -------- --------

INCOME (LOSS) BEFORE CHANGE IN
ACCOUNTING METHOD $ (2,946) $ (5,993) $ 9,409 $(15,356)
-------- -------- -------- --------

Cumulative effect of a change
in accounting method, net of
deferred tax - - (1,736) -

NET INCOME (LOSS) $ (2,946) $ (5,993) $ 7,673 $(15,356)
======== ======== ======== ========

Earnings (loss) per share
before change in acctg
method ($0.13) ($0.25) $0.40 ($0.65)
Earnings (loss) per share
before change in acctg
method - diluted (1) ($0.13) ($0.25) $0.40 ($0.65)
Earnings (loss) per share ($0.13) ($0.25) $0.33 ($0.65)
Earnings (loss) per share -
diluted (1) ($0.13) ($0.25) $0.33 ($0.65)

Weighted avg. common shares
outstanding 23,508 23,586 23,508 23,586
Weighted avg. common shares
outstanding - diluted 23,508 23,586 23,594 23,586

Discretionary cash flow (2) $ 5,014 $ 8,603 $ 10,620 $ 13,000

Earnings before interest,
taxes and non-cash items (3) $ 10,939 $ 15,592 $ 22,758 $ 26,452

(1) Due to a potential antidilutive effect in loss periods, weighted
average common shares outstanding were used for periods with a
loss.
(2) Discretionary cash flows consists of net income excluding non-cash
items. Non-cash items include depreciation, depletion and
amortization, compensation expense related to stock options, gain
(loss) due to hedge ineffectiveness (FAS 133), gain (loss) on
interest rate swap, amortization of debt issue costs, amortization
of bond premium, gain on extinguishment of debt, asset retirement
accretion expense, receivable write-offs, loss on asset sales,
cumulative effect of a change in accounting method and deferred
taxes.
(3) Earnings before interest, taxes and non-cash items consist of
earnings before interest expense, taxes, and non-cash items
detailed in footnote (2).


MISSION RESOURCES
SUMMARY OPERATING INFORMATION

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- --------
AVERAGE SALES PRICE, INCLUDING
THE EFFECT OF HEDGES:
Oil and condensate ($/Bbl) $ 25.81 $ 22.60 $ 25.43 $ 20.58
Gas ($/Mcf) $ 4.42 $ 3.25 $ 4.72 $ 2.96
Equivalent ($/Boe) $ 26.08 $ 21.37 $ 26.58 $ 19.50

AVERAGE SALES PRICE, EXCLUDING
THE EFFECT OF HEDGES:
Oil and condensate ($/Bbl) $ 28.60 $ 22.67 $ 29.74 $ 20.38
Gas ($/Mcf) $ 5.33 $ 3.25 $ 5.78 $ 2.79
Equivalent ($/Boe) $ 29.91 $ 21.42 $ 31.71 $ 18.98

AVERAGE DAILY PRODUCTION:
Oil and condensate (Bbls) 6,242 9,945 6,293 10,470
Gas (Mcf) 24,297 38,791 24,834 39,580
Equivalent (Boe) 10,292 16,410 10,432 17,067
Equivalent (Mcfe) 61,749 98,461 62,592 102,400

TOTAL PRODUCTION:
Oil and condensate (MBbls) 568 905 1,139 1,895
Gas (MMcf) 2,211 3,530 4,495 7,164
Equivalent (MBoe) 937 1,493 1,888 3,089
Equivalent (MMcfe) 5,619 8,960 11,329 18,534

OPERATING COSTS PER BOE:
Lease operating expense $ 8.93 $ 7.49 $ 9.14 $ 7.88
Taxes other than income $ 2.30 $ 1.87 $ 2.57 $ 1.53
General and administrative
expenses $ 3.05 $ 1.63 $ 2.88 $ 1.62
Depreciation, depletion, and
amortization (1) $ 9.35 $ 7.21 $ 9.35 $ 7.06

(1) Depreciation of furniture and fixtures and amortization of
intangibles is excluded.


MISSION RESOURCES
CONDENSED BALANCE SHEETS
(Amounts in thousands)

June 30, December 31,
2003 2002
----------- -----------
ASSETS:
Current assets $ 33,194 $ 32,426
Property, plant and equipment, net 336,809 300,719
Leasehold, furniture and equipment, net 2,599 2,096
Other assets 7,503 7,163
----------- -----------

$ 380,105 $ 342,404
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 41,340 $ 31,474
Long-term debt 207,426 225,000
Unamortized premium on issuance of
$125,000 bonds 1,289 1,431
Deferred tax liability 19,471 16,946
Other long-term liabilities, excluding
current portion 1,438 2,176
Asset retirement obligation, excluding
current portion 38,969 -
Stockholders' equity 77,213 69,572
Other comprehensive income (loss), net
of taxes (7,041) (4,195)
----------- -----------

$ 380,105 $ 342,404
=========== ===========


MISSION RESOURCES
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

Six Months Ended June 30,
------------------------
2003 2002
----------- -----------
OPERATING ACTIVITIES:
Net income (loss) $ 7,673 $ (15,356)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities 2,947 25,637
Net changes in operating assets and
liabilities (508) (12,264)
----------- -----------

Net cash provided by (used in) operating
activities 10,112 (1,983)

INVESTING ACTIVITIES:
Acquisition of oil and gas properties (453) (209)
Capital expenditures (14,858) (11,535)
Leasehold, furniture and equipment (783) (92)
Proceeds from sales of properties 3,170 10,563
----------- -----------

Net cash provided by (used in) investing
activities (12,924) (1,273)

FINANCING ACTIVITIES:
Proceeds from borrowings 80,000 21,000
Repurchase of notes (71,700) -
Payments of long term debt - (16,500)
Credit facility costs (4,420) (62)
----------- -----------

Net cash provided by financing activities 3,880 4,438
----------- -----------

Net increase in cash and cash equivalents 1,068 1,182
Cash and cash equivalents at beginning of
period 11,347 603
----------- -----------

Cash and cash equivalents at end of period $ 12,415 $ 1,785
=========== ===========


MISSION RESOURCES
NON-GAAP DISCLOSURE RECONCILIATION
(Amounts in thousands)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- --------

NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $ 4,616 $ 2,153 $ 10,112 $ (1,983)
Change in assets and
liabilities 398 3,731 508 12,264
Loss on asset sales - 2,719 - 2,719
-------- -------- -------- --------
DISCRETIONARY CASH FLOW (a) $ 5,014 $ 8,603 $ 10,620 $ 13,000
-------- -------- -------- --------


NET INCOME (LOSS) $ (2,946) $ (5,993) $ 7,673 $(15,356)
Interest expense (1) 5,925 6,989 12,063 13,452
Gain on interest rate
swap (1) - (295) (520) 255
Amort. of deferred
financing costs and bond
prem. (1) 507 675 916 1,348
Income tax expense
(benefit) (1,586) (3,228) 5,067 (8,269)
Depreciation, depletion and
amortization 8,904 10,924 17,926 22,199
Gain on extinguishment of
debt - - (22,375) -
Cumulative effect of a chg.
in acct. method, net of
tax - - 1,736 -
Asset retirement accretion
expense 343 - 688 -
Receivable write-offs (3) - 851 - 851
Loss on asset sales - 2,719 - 2,719
Amortization of stock
options (2) - 7 - 102
Loss (gain) due to hedge
ineffectiveness (3) (208) 2,943 (416) 9,151
-------- -------- -------- --------
EARNINGS BEFORE INTEREST,
TAXES AND NON-CASH ITEMS (a) $ 10,939 $ 15,592 $ 22,758 $ 26,452
-------- -------- -------- --------


NET INCOME (LOSS) $ (2,946) $ (5,993) $ 7,673 $(15,356)
Gain on extinguishment of
debt, net of tax - - (14,544) -
Cumulative effect of a chg.
in acct. method, net of
tax - - 1,736 -
-------- -------- -------- --------
NET LOSS BEFORE GAIN AND
CUMULATIVE CHANGE (b) $ (2,946) $ (5,993) $ (5,135) $(15,356)
-------- -------- -------- --------

(1) Included in interest expense
(2) Included in general and administrative expenses
(3) Included in interest and other income (expense)

(a) NOTE - Management believes that earnings before interest, taxes
and non-cash items and discretionary cash flow are relevant and
useful information, which are commonly used by analysts, investors
and other interested parties in the oil and gas industry.
Accordingly, we are disclosing this information to permit a more
comprehensive analysis of our operating performance and liquidity,
and as an additional measure of Mission's ability to meet its
future requirements for debt service, capital expenditures and
working capital. Earnings before interest, taxes and non-cash
items and discretionary cash flow should not be considered in
isolation or as a substitute for net income, cash flow provided by
operating activities or other income or cash flow data prepared in
accordance with generally accepted accounting principles ("GAAP")
or as a measure of our profitability or liquidity. Earnings before
interest, taxes and non-cash items and discretionary cash flow
exclude components that are significant in understanding and
assessing our results of operations and cash flows. In addition,
earnings before interest, taxes and non-cash items and
discretionary cash flow are not terms defined by GAAP and, as a
result, our measures of earnings before interest, taxes and non-
cash items and discretionary cash flow might not be comparable to
similarly titled measures used by other companies.

(b) NOTE - Management believes net loss before gain on extinguishment
of debt and cumulative effect of a change in accounting method is
relevant and useful information. We believe it gives a clearer
picture of the company's performance excluding material
non-recurring transactions. Accordingly, we are disclosing this
information to permit a more comprehensive analysis of our
operating performance. Net loss before gain on extinguishment of
debt and cumulative effect of a change in accounting method should
not be considered in isolation or as a substitute for net income
prepared in accordance with GAAP.


MISSION RESOURCES
HEDGE SCHEDULE

OIL GAS

Third Quarter 2003 Third Quarter 2003
3,000 bbls a day in a swap of 10,000 mmbtu a day in a collar of
$23.95 $3 to $4.10
500 bbls a day in a swap of 5,000 mmbtu a day in a collar of
$23.94 $3.56 to $4.11

Fourth Quarter 2003 Fourth Quarter 2003
3,000 bbls a day in a swap of 10,000 mmbtu a day in a collar of
$23.59 $3.00 to $4.65
500 bbls a day in a swap of 5,000 mmbtu a day in a collar of
$23.58 $3.73 to $4.32
--------------------------------------


First Quarter 2004 First Quarter 2004
2,500 bbl a day in a swap of 5,000 mmbtu a day in a collar of
$25.24 $3.90 to $5.25
3,000 mmbtu a day in a collar of
$4.50 to $5.61

Second Quarter 2004 Second Quarter 2004
2,500 bbl a day in a swap of 5,000 mmbtu a day in a collar of
$24.67 $3.70 to $4.08

Third Quarter 2004 Third Quarter 2004
2,500 bbl a day in a swap of 5,000 mmbtu a day in a collar of
$24.30 $3.70 to $4.04

Fourth Quarter 2004 Fourth Quarter 2004
2,500 bbl a day in a swap of 5,000 mmbtu a day in a collar of
$23.97 $3.85 to $4.23

--------------------------------------


First Quarter 2005
1,000 mmbtu a day in a collar of
$4.25 to $6.32

Second Quarter 2005
1,000 mmbtu a day in a collar of
$4.25 to $4.92

Third Quarter 2005
1,000 mmbtu a day in a collar of
$4.25 to $4.72

Fourth Quarter 2005
1,000 mmbtu a day in a collar of
$4.25 to $5.14

CONTACT: Mission Resources Corporation, Houston
Ann Kaesermann, 713-495-3100
[e-mail]

SOURCE: Mission Resources Corporation

[excel]

Porscha. I think they forgot to tell my company about the NG cost run up? LOL!

[porscha]

Miners rush to finance their ventures
Bullion veterans point to several 'cheap' stocks

By Thom Calandra, CBS.MarketWatch.com
Last Update: 12:29 PM ET Aug. 11, 2003


SAN FRANCISCO (CBS.MW) -- A $10 fillip in the price of gold has sparked a spate of miner financings in the stock market.


CBS MARKETWATCH COMMENTARY

THOM CALANDRA (WEEKDAYS)
Miners rush to finance ventures as bullion gains steam
TOMI KILGORE (MONDAYS)
Dow, S&P 500 still OK for disciplined investors
BAMBI FRANCISCO (TUESDAYS)
The 'Real' battle is over legal music downloads
MIKE TARSALA (WEDNESDAYS)
Oracle is losing PR war with PeopleSoft
DAVID CALLAWAY (THURSDAYS)
Summer's silly season not good for stocks
JON FRIEDMAN (FRIDAYS)
Vivendi's media auction turning into a game of 'puolet'




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THE CALANDRA REPORT
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The transactions are all over the map.

Companies digging for gold, copper, silver and platinum from Africa to Canada to Turkey are benefiting from an increased appetite for bullion risk.

Eldorado Gold (CA:ELD: news, chart, profile), with stock traded in Canada, says it raised more than $60 million via common shares and warrants to develop its Kisladag mine in Turkey. That transaction was one of the larger of many windfalls the past 10 days for cash-starved bullion exploration companies and miners.

The extent of the financings is remarkable, given that the price of gold, and most other metals, has stalled this summer. On Monday, gold's spot price was up $4 to $360 an ounce. It would appear the mining sector is attracting interest on an increasingly nervous Wall Street, where technical and fundamental analysts are forecasting sharp gains for gold, silver, platinum and copper. See: Technical crowd seeks bullion.

"The Commodities Research Bureau Index just broke out higher, and base metals are climbing slowly," says Robert Bishop of Gold Mining Stock Report. "It's a friendlier environment for metals, and hey, where do you put your money these days?"

Companies seen as "damaged goods" are regaining investors' favor. Canyon Resources (CAU: news, chart, profile), a long-struggling Colorado-based miner, just raised almost $2 million through a sale of warrants. Canyon's Dick DeVoto, a former mining professor, has been waging a years-long campaign to develop the vast McDonald gold mine in Montana, where environmentalist voters are hostile to mining interests.

As readers of The Calandra Report know, I believe DeVoto likely will succeed either on the ground or in the courts. If so, Canyon Resources will find itself in possession of a 10 million-ounce resource, or a hefty civil damage award that could approach a half-billion dollars.

Canyon Resources, traded on the Amex, has a market cap of $33 million. "It's most definitely one of the cheapest gold assets out there" says John C. Doody, editor of Gold Stock Analyst.

On Monday morning, Kinross Gold (KGC: news, chart, profile), a mid-sized gold producer, said it was selling $185 million Canadian worth of new shares, mostly to pay off convertible debentures. Privately held companies are also enjoying the fruits of financings.



Robert Friedland's African Platinum Minerals just raised $7 million at $6 a share, an extraordinary level for a private company. The company is active in and around South Africa's North Limb of the Bushveld platinum complex.

"With talk of Friedland's African Minerals reportedly going public in the fall, and Anglogold (AU: news, chart, profile) deals with junior miners brewing, the North Limb is the hottest platinum play in the world," said John Foulkes, corporate development manager at tiny Platinum Group Metals Ltd. (CA:PTM: news, chart, profile) in Vancouver. Platinum Group Metals has two exploration projects in the North Limb, and its Canada-traded shares have about doubled in 10 weeks.

South Africa's Anglogold, one of the world's largest gold miners, is bidding more than $1 billion for Ghana's Ashanti Goldfields (ASL: news, chart, profile) in a move that might open the floodgates to other corporate mergers and takeover offers, some of them hostile as large miners seek to restore depleted reserves of proven and probable resources on their balance sheets. (See: The Calandra Report for more on several brewing deals.)

Friedland, controlling shareholder of Mongolia copper and gold developer Ivanhoe Mines (CA:IVN: news, chart, profile), says he's extremely bullish about prospects for platinum, a metal that increasingly is finding industrial uses, and is becoming the ultra-chic jewelry of choice among Asia high-rollers.



"Platinum is pushing $700 an ounce and has a bright industrial future," Friedland told The Calandra Report in an interview last week. "There are probably 60 ounces of gold in the Earth's crust for every ounce of platinum, and no central banks own platinum, so they can't sell it, can they?" he says with a wink.

"If you forced me to own only metals and nothing else, I'd put 50 percent into nickel, 40 percent into platinum and 10 percent into gold," says Friedland, a 53-year-old billionaire with homes in Singapore, Northern California and Canada. "Give a girl in China a ring these days, a gold one and not a platinum one, and she'll say, 'What am I, cheap goods?'"

Platinum's price Monday was pressing $700 an ounce. Others who are known as the "rock stars" of the mining world expect gold and related metals prices to soar in coming months.

Pierre Lassonde of Newmont Mining (NEM: news, chart, profile), the world's biggest gold producer, just forecast the metal would notch at least $450 in the coming year as the U.S. dollar continues to deflate and the Chinese, recently permitted to own and trade gold, increase their purchases.

Frank Veneroso, a mysterious but revered asset manager and gold economist, recently published what some say are his first printed comments on the gold market in several years. Veneroso, based in San Francisco but never eager to return several of my own personal phone calls, said in an article in Brien Lundin's Gold Newsletter that "we have reports that, in the wake of Sept. 11 and the Bush administration's war on terrorism, Islamic institutions and wealthy Islamic individuals, fearful of a U.S. seizure of their assets, converted dollar assets into gold."

Veneroso, said to be forming a new gold fund for large investors, also says buying in China and hedge-book buybacks by large gold producers are some reasons for gold's rise. "All of this buying, taken in the aggregate, must have represented demand for thousands of tons of gold," says Veneroso, who's one of a handful of bullion believers who see gold's price rising sharply in coming years.

Frank Holmes, chief executive of asset manager U.S. Global Investors, contends investors are most interested in shares of mining companies that have so-called polymetallic deposits. These are deposits that offer the possibility of double-strikes: copper and gold, for instance.

Holmes first told me about this theme a year ago, over dinner at a Denver Gold Forum event. The longtime asset manager says copper-gold porphyries "represent significant sources of gold on a world scale."

CIBC World Markets in Toronto estimates about 8 percent of the world's gold production comes from such copper-gold deposits. The world's largest single source of gold is a copper-gold porphyry deposit, the Grasberg Mine owned by Freeport McMoran Copper and Gold (FCX: news, chart, profile) in Indonesia, with gold reserves greater than 60 million ounces.



Holmes, born in Canada and based in San Antonio, Texas, the headquarters of $1 billion-plus U.S. Global Investors, has been on the mark in his search for cheap copper-gold stocks. He was among the first asset managers in North America to identify shares of Wheaton River Minerals (WHT: news, chart, profile), a Mexico producer, as an underpriced miner of gold and copper.

Wheaton's shares have more than doubled since listing on the American Stock Exchange nine months ago. "Many of the great success stories this year have been copper-gold deposits, like Ivanhoe Mines and Northern Orion Resources (CA:NNO: news, chart, profile), Holmes tells me as he hustles to make a connecting flight to yet another gathering of mining mavens.

Holmes has identified another dirt-cheap copper-gold producer that is selling for about 50 percent of the cash-flow multiple of its larger peers -- a value identifier that has served him well in the past. I'll have more about Holmes' current choice in this week's publication of The Calandra Report.

Holmes, Veneroso and other noted bullion analysts will be speaking this year at the New Orleans Investment Conference. Mention my name, The Calandra Report or that of CBS MarketWatch and you'll receive a discount for admission to the late October event. See: New Orleans Investment Conference.

Thom Calandra's StockWatch is CBS MarketWatch's flagship column. The regular report is in its eighth year at CBS.MarketWatch.com. Thom Calandra is also author of subscription service The Calandra Report.

[porscha]

Natural gas closes at four-week high
Oil closes just above $32; IEA ups demand growth target

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 3:37 PM ET Aug. 11, 2003







SAN FRANCISCO (CBS.MW) - Natural gas futures closed at their highest level in four weeks Monday, with traders still concerned that inventories might not be able to meet demand this winter.



CBS MARKETWATCH TOP NEWS
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U.S. stocks end on an upswing
Natural gas closes at four-week high; crude ends lower




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Meanwhile, crude prices closed just above $32 a barrel amid uncertainty over OPEC's next move on oil production and a higher demand growth estimate from the International Energy Agency.

Natural gas for September delivery rose by 9.2 cents, or 1.8 percent, to close at $5.129 per million British thermal units on the New York Mercantile Exchange. The contract hasn't closed above $5.12 since July 14.

"If August gets hot and we go into cold winter ... [prices] could get back up towards $6, maybe even $10 later in the winter," said Phil Flynn, a senior analyst at Alaron Trading in Chicago.

But other analysts said the strength in natural gas probably won't last much longer.

The Energy Department's reported increase of 74 billion cubic feet in inventories for the week ended Aug. 1 was below some market expectations, but it was still 23 billion cubic feet more than the five-year average refill, said Tim Evans, a senior analyst at IFR Pegasus.

Even if demand for natural gas climbs as the market expects from users switching back to the fuel from oil, this Thursday's inventory report will likely show a 70 billion to 75 billion cubic foot climb in stocks for the week ended August 8, said Evans. That's still "comfortably" above the 51 billion average five-year comparison, he said.

Flynn pointed out, however, that the five-year average is "deceptively low" and a "false security," because four out of the five past winters have been "some of the warmest on record."

At some point, "if we get seasonal weather, we'll have a more than seasonal rally," he said.

Total U.S. stocks of 2.106 trillion cubic feet remain 461 billion cubic feet below the year-ago level and are 234 billion cubic feet below the five-year average, the Energy Department said last week.

The market generally needs about 3 trillion cubic feet of natural gas in storage to have enough for the winter season, analysts say. Read more about the outlook for natural gas.

Crude slips back

Crude futures closed lower Monday, pressured by continued uncertainty over Iraqi production as well as OPEC's next move on production.

But prices remained above the $32-per-barrel level on the back of a higher demand growth estimate for the year from the International Energy Agency.

Crude for September delivery fell by 17 cents to close at $32.01 per barrel.

September unleaded gasoline fell by 1.45 cents to close at 94.05 cents a gallon. September heating oil closed at 83.54 cents a gallon, down 0.79 cent.

Iraqi crude is expected to begin flow in to the oil terminal at Ceyhan, Turkey within 2 days or less, with a possible rate flow of around 300,000 to 400,000 barrels per day, according to IFR Pegasus' Evans, who cited news reports.

The country is still facing obstacles when it comes to bringing production back up to the pre-war level of around 2.5 million barrels per day.

The 140,000 barrel-per-day Basra refinery has been forced to halt production because of a power failure, news agencies reported Monday. "Iraq's sole export terminal Min al-Bakr stopped loading oil tankers on Monday because of a lack of power at the pumping stations, apparently," said Michael Fitzpatrick, an analyst at Fimat USA.

Also, a riot protesting a fuel shortage in the city of Basra over the weekend has raised black market gasoline prices to ten times the level in Baghdad, Evans said. Read the New York Times article.

OPEC debate

Traders have also been concerned that OPEC will decide to raise its output because the basket price for its seven types of crude oils currently stands above its $22 to $28 per barrel target range.

"OPEC guidelines stipulate that it considers adjusting its production by 500,000 barrels per day if prices stray outside the band" for 20 days straight, said Fitzpatrick. The 20th day would fall on August 28, he said. The price stood at $29.22 on Friday.

OPEC Secretary-General Alvaro Silva said last week that while the price band mechanism remains in place, it won't automatically trigger a production increase.

OPEC production averaged 26.6 million barrels per day in July, up 370,000 barrels per day from June, according to a survey by Platts, the global energy information division of The McGraw-Hill Cos. (MHP: news, chart, profile).

Excluding Iraq, output averaged 25.92 million barrels per day, up 150,000 barrels per day from June and 520,000 barrels per day above the cartel's quota of 25.4 million barrels per day.

Inventories in the U.S. remain tight, but while crude stocks did climb for the week ended August 1, unleaded gasoline fell for a fourth straight week, the Energy Department reported Wednesday. See full story.

IEA ups 2003 demand target

On the upside for prices, the Paris-based International Energy Agency raised its 2003 demand growth forecast Monday by 100,000 barrels per day to 1.1 million barrels per day.

In its monthly report, the agency cited a "quicker-than-expected" recovery from the effects of the Severe Acute Respiratory Syndrome (SARS) outbreak.

Oil prices will likely "continue to be supported by low stocks, stronger economic growth, a pick-up in U.S. gasoline demand and the uncertainty over Iraqi supplies ahead of an anticipated seasonal rise in demand," the agency said.

In Monday's equities trading, oil service stocks traded higher, as reflected by action in the Philadelphia Oil Service Index. (OSX: news, chart, profile). See Energy Stocks.

In Nymex metals trading, gold for December delivery closed back above $363 an ounce ahead of the Federal Open Market Committee meeting Tuesday. See Metals Stocks.

Tracking price movements in commodities as a whole, the CRB/Bridge Index rose 0.1 percent to stand at the 237.2 level.

Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco.

[porscha]

excel - about the only time mining stocks go up is when people are expecting the price of gold or silver to increase. i haven't heard anything about that but it's worth keeping an eye on. please post any articles you run across.

[excel]

I'm noticing more and more mining stocks being mentioned lately.
I don't know anything about that sector.
Looks though like it's heating up?

[excel]

Porscha. Dividend plays look nice. Where's a good hurricane when you need one? LOL! They say this is suppose to be worse than last years season. We shall see. A few of those that linbger off the coasts for a while could really do us good.
Winter coming. New housiing almost all going to NG.
That is why the NG sector is the only one I'm long in right now. I think by end of November I'll be out. We shall see by the way the sector moves in relation to winter cold.

Let it SNOW!

PS. Sorry Dilt!

[porscha]

excel - it still looks like there's some money left in the natural gas sector. after getting hit hard the past month or so i've noticed all of my stocks in that sector have started to rebound.

PVX and NCN are two canadian oil and gas trusts i own that pay monthly dividends that are well above 10% annually.

LNG is a liquid natural gas company that has also seen some really nice price appreciation as of late.

[excel]

Natural gas prices to climb
The U.S. produces 84 percent of its gas and imports 14 percent from Canada.
By MARTA HUMMEL
Medill News Service
Wednesday, August 6, 2003


WASHINGTON — With natural gas stockpiles near 20-year lows and energy policy meant to ease prices in limbo, Pennsylvania consumers are expected to see higher heating bills this winter.
The Senate scrapped legislation Friday to open federal land to oil and gas drilling, among other sweeping changes, in favor of a Democratic bill that emphasizes conservation over consumption.

But the chairman of the Senate Committee on Energy and Natural Resources, Pete V. Domenici, said he would fight to include many of the Republican provisions when the House and Senate reconcile their two bills after Congress reconvenes in the fall.

“I promise you we will write many of this year’s energy provisions into the bill at conference,” he said. “We will do more for production. We will do more for energy diversity. We will do more for research. Tonight’s bill is just a vehicle to get us to conference.”

Rep. Todd Platts, R-York County, chose not to vote on the bill in April, and Pennsylvania’s Republican senators, Arlen Specter and Rick Santorum, voted for the Senate version on Friday.

Hurricanes and hot weather this summer combined with a cold fall or winter could also squeeze the supply and push prices higher.

“Hurricane Claudette, which developed in the Gulf of Mexico in July 2003, caused a loss of 18.1 percent of natural gas production from the Gulf and 20.8 percent of oil production (as of July 16),” according to report by the Interior Department.

“These and other factors could lead to a tighter market.”

The Energy Department warned in June that high prices could continue through this year into 2004.

Pennsylvania produces 21 percent of its electricity from natural gas, compared with 22 percent nationally, according to Philadelphia-based Penn Environment, an environmental group.

The U.S. produces 84 percent of its gas and imports 14 percent from Canada. Pennsylvania ranks 15th of 22 gas-producing states in the United States, with all of its production coming from the western half of the state.

Experts say the United States has the potential to supply growing demand — which could double by 2025 according to industry estimates — but energy companies need the ability to drill in public lands.

“You could drill in downtown Pittsburgh more easily than in public lands,” said Lou D’Amico, executive director of the Independent Oil and Gas Association of Pennsylvania, which represents 135 independent firms. He said companies “are certainly hoping” any energy legislation opens federally protected land.

“New technology makes it possible to drill without hurting the environment,” he added.

But environmental groups think Congress should focus on reducing consumption and moving toward alternative fuels.

“Congress should be looking to long-term solutions, not quick fixes,” said David Masur, executive director of Penn Environment.

“Infrastructure costs like building roads and transporting fuel are huge. When you add in these costs, allowing more drilling doesn’t necessarily mean lower prices.”

But what is clear is that the United States must increase production or look to other sources if it hopes to meet growing demand.

“If demand doesn’t stabilize, more gas will have to come from imports,” said Sara Banaszak, director of gas and power for PFC Energy, a Washington-based energy consulting firm.

[excel]

MSSN a Natural Gas and Oil company reports earnings during trading hours on Tuesday the 12th.

[excel]

Colorado families could pay $40 more over winter months

By Gargi Chakrabarty, Rocky Mountain News
August 6, 2003

Higher natural gas wholesale prices could take a bigger bite out of customers' wallets this winter and pose a problem for families that need help paying their heating bills.

A typical U.S. family that uses natural gas is likely to pay 12 percent more, or $100, in heating bills from October through March, estimates Guy Caruso, director of the Energy Information Administration.





Caruso spoke at the Colorado Oil and Gas Association's annual conference on Tuesday.

The good news is the dollar cost won't be as high in Colorado.

Coloradans usually pay less than the national average because the locally available gas is cheaper than on the East Coast or in the Midwest.

Still, this winter a typical Colorado family is likely to pay 13 percent more, or $40, over the six months from a year ago. The estimates are based on wholesale natural gas prices set by Colorado Interstate Gas.

A typical monthly heating bill was $48.88 last winter and this year is expected to be $55.38.

The Energy Administration, which is the Energy Department's statistical agency, will announce its winter forecast for national gas prices today. Last year, when gas prices were stable from October through December but soared in January, a typical family paid $801 in heating bills.

"The estimates hinge very much on the assumption of normal weather," said David Costello, EIA's economist in charge of short-term forecasts. "There is plenty of uncertainty about what could happen this winter."

Colorado Interstate Gas sells natural gas at wholesale prices to many utilities in Colorado, including Xcel Energy, which serves 1.2 million local customers.

Xcel thinks heating bills will be higher this year but won't see the 63 percent hike the company predicted in March. "The reason for the increase," said Xcel spokesman Steve Roalstad, "is because the prices that we pay for gas will be higher as well."

Roalstad said the March estimate was lowered because "the (natural gas) landscape has changed and it is constantly changing."

Wholesale natural gas - which accounts for 60 percent of a heating bill - is likely to increase more than 30 percent this winter from a year ago.

For instance, the current CIG natural gas price for delivery from November through March is $4.52 per decatherm (100 therms; one therm is equal to 100,000 Btu), up from last year's $3.45 per decatherm.

Worried about the impact of higher gas prices on low-income families, the local oil and gas industry formed a partnership with Colorado Energy Assistance Foundation on Tuesday.

The partnership is focused on helping CEAF raise money to help low-income families pay bills and weatherize their homes. The nonprofit foundation raised $5 million last year for energy assistance.

"Thousands of Colorado families are bracing for an energy cost increase that will leave many of them unable to manage their bills," said Skip Arnold, CEAF's executive director. "We're very grateful that Colorado Oil and Gas Association continues to recognize this situation and has reached out to us so that we can help as many of these families as possible."

Colorado receives about $28 million in federal energy assistance each year. But that amount won't be sufficient this year because a struggling economy and higher gas prices are likely to force more people to seek help, said Glen Cooper, of the state's Department of Human Services. Cooper's office allocates the energy assistance dollars to eligible families. "We expect a 5 percent increase in applicants. We won't close doors on anyone. We'll lower the average benefits if the money doesn't increase."

Last winter, even when natural gas prices were low and temperatures were above average, 83,000 families received heating assistance - up from 49,000 in 2000.

This year eligible families are likely to receive only $250 in assistance, down from $302 of last year.

To apply for assistance, call LEAP toll-free at 1-866- HEAT-HELP.

To be eligible, a family of four must earn $2,837 a month or less. For a family of two, the monthly income must be $1,869 or less. Funds are available beginning Nov. 1.

[excel]

Natural gas scores 3% weekly gain
Nymex crude contract closes ends lower, but above $32

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 3:26 PM ET Aug. 8, 2003







SAN FRANCISCO (CBS.MW) -- Natural-gas futures closed lower Friday, as traders took a step back to view the commodity's supply picture, but prices scored a 3 percent gain for the week.



Meanwhile, crude prices fell back from a fresh five-month high they reached earlier in the session, to close narrowly lower. The market was clouded by demand uncertainty and news of higher oil output from a Russian producer.

Natural gas for September delivery fell by 4.5 cents to close at $5.037 per million British thermal units on the New York Mercantile Exchange.

The contract rose nearly 34 cents Thursday to close at a more than two-week high, but Friday's close represents a sizable gain over last week's close at $4.874.

The Energy Department's reported increase of 74 billion cubic feet in inventories for the week ended Aug. 1 was below some market expectations, but this doesn't lessen that it was also "significantly large on a historical basis," said John Kilduff, an analyst at Fimat USA.

A year ago, weekly supplies rose by 33 billion cubic feet.

Still, total U.S. stocks of 2.106 trillion cubic feet remain 461 billion cubic feet below the year-ago level and are 234 billion cubic feet below the five-year average, the Energy Department said Thursday.

Thursday's price climb in natural gas "highlights the vulnerability of the market to price spikes on any kind of even remotely bullish news," Kilduff told clients earlier Friday.

The market generally needs about 3 trillion cubic feet of natural gas in storage to have enough for the winter season, analysts say. From the current level, supplies will need to rise by 69 billion cubic feet per week over the next 13 weeks, Kilduff said.

He also noted that the average rise for that time period is 55 billion per week and the highest amount was 66 billion per week in the 2001 period.

"The 3 [trillion cubic feet] appears within reach, but ... the market will judge any slack in production harshly," he said.

Either way, natural gas "will be one of this year's hottest commodities to monitor when it comes to potential supply disruptions, as demand is expected to remain, at the least, steady to higher than last year," said John Person, Infinity Brokerage Services' head financial analyst.

Crude drops back

Uncertainty over demand as well as news of a sizable rise in output from a major oil producer in Russia pressured oil futures Friday.

Prices had climbed earlier in the session to a five-month high at $32.85 a barrel amid ongoing concerns over Iraq's ability to lift oil production back to prewar levels.

Crude for September delivery fell by 21 cents to close at $32.18 per barrel on Nymex. A week ago, it closed at $32.31.

September unleaded gasoline fell by 0.85 cent to 95.5 cents a gallon. September heating oil closed at 84.33 cents a gallon, down 1.12 cents.

Lukoil, Russia's second-largest oil producer, said Friday that it expects to pump 4 percent more oil this year -- that's double last year's growth rate following the company's purchase of assets in northern Russia and western Siberia, said Infinity's Person. It produced 1.47 million barrels of oil a day in January through June, he said.

The market's speculating that "the economy may not be able to sustain the growth and this could derail demand," he said, thus putting a drag on crude prices.

Also, prices are "slightly rich at this level, and traders are taking money off the table from those who are holding long positions by liquidating positions going into the weekend," Person said.

OPEC still in view

Meanwhile, OPEC's price for its basket of seven types of crude oils stood above $28 per barrel for a fifth-straight day, according to Fimat's Kilduff.

The cartel has been committed to keeping the basket price between $22 and $28 per barrel.

The price band mechanism remains in place, it won't automatically trigger a production increase, said Fimat, citing Thursday comments made by OPEC Secretary-General Alvaro Silva.

"OPEC appears quite willing to risk higher prices and the economic and demand damage they cause, [rather] than lower prices," Kilduff said.

Traders continue to assess the U.S petroleum inventory updates, wary of a hefty gain in last week's crude supplies as well as lower gasoline stockpiles.

The Energy Department reported Wednesday that the nation's crude inventories increased by 2.9 million barrels to 280.2 million barrels for the week ended Aug. 1. Separately, the American Petroleum Institute reported an increase of 1.6 million barrels to 278.1 million.

[excel]

Natural Gas is at an interesting juncture. First off, the sector has been in a steady decline since early June. We are still in a uptrend, mind you, and I base this off a rising 200-period moving average. Short term, we are VERY oversold and the index is now sitting at its 100-period moving average (183ish). What really jumps out at me is the weekly chart. The sector as a whole is sitting right at its 200-period moving average.



A weekly 200-period is normally a pretty strong level for either support / resistance. Short-term oversold into support might be a good place to look at for adding some longs. I would like to see the sector turn a tad and regain some upward momentum, and if it does...we might have a solid short-term trade.


Larry Connors and Paul Taglia

[100lbStriper]

Yesterday's conference call went pretty dam good the way I see it. Time will tell though. Here's the link if anyone would want to listen,

http://www.on2.com/index.php3

[excel]

Striper. Welcome to the board. Good luck with your pick.
I sold all my LOUD and looking to get back in at a lower price. We shall see. If I had more funds I'd like to have gone long on it. It's fun to watch a company grow.
Keep us informed on how yours does.

[porscha]

here's a post from a yahoo message board with some idea's on natural gas plays and some other sector plays.

Yahoo! Message Boards: IMH

Re: Here's the deal.
by: everyoneelseiswrong (35/M) 07/20/03 02:37 pm
Msg: 17908 of 17910

I owned PVX for a while and did quite well with it. I think the fundamentals for Natgas and Oil are screamingly positive, both here and abroad. If your time frame is on the order of years I would also seriously look into energy suppliers to the Asian markets, particularly China. I'm not the first one with this idea, so you might see if you can buy after a technical correction. Despite what many are saying the fundamentals for housing, at least based on my reading, do not support today's inflated prices. In contrast the fundamentals for oil/natgas do support these current prices.

As with all of the oil/gas producers it is important to have a real good understanding of reserves and company's methods for growing their business (is it through issuance of secondaries to finance acquisitions or do they rely more on internal exploration and development, for example).

Not only is the supply/demand equation for oil/gas producers positive, but since they deal in commodities you get the added benefit of a hedge against inflation and currency fluctuations. Make sure you understand the currency issues, though, if you invest in producers in another country (as well as the complex tax issues!)

No one can say for sure when the bubble will burst, and there is always risk in getting out too early and missing a big move. But in today's market I think capital preservation is more important than trying to maximize profits. As always reward is proportional to risk.

brew

P.S. as far as other investments I personally like the following ideas (none of which are original): Chinese infrastructure, Resource driven economies (e.g. Canada, Australia, New Zealand, and especially Argentina and Brazil which are very cheap now), Commodities esp. coffee, sugar, and cocoa.

[100lbStriper]

excel... my pick is ONT for the long hall. I found it funny your involved in LOUD because the ceo for on2 mentioned it in a good way in an interview. Cool coincidence huh !!! I wanted to post the interview but I can't seem to find the darn thing. Been looking 30 minutes. Oh well if it turns up I'll repost it for ya.

My opinion on this company is simply this. If this becomes the next standard tec watch out !!!!!!!!!!

http://www.on2.com/index.php3

[excel]

Thanks Dilt. Great site.
Below is quite a good summary imo why this is a good sector to be in

“Producers are working hard to fulfill demand as they face the challenge of producing
natural gas from mature supply regions,” said R. Skip Horvath, President of NGSA.
Natural gas drilling rigs are up 45 percent in the U.S. from last year. According to the
government, in 2002, producers drilled less than 16,000 new wells. In 2003 the
government estimates that producers will drill 23,000 new natural gas wells.


“However, gas production is not likely to increase this year,” said Horvath. “The new
supplies we bring online will only offset natural declines.”
Although producers are working hard to increase production, they are limited by
government restrictions that prevent drilling for natural gas in some areas that contain
some of the largest potential resources left in the U.S. Severe access restrictions to
natural gas resources in the Gulf of Mexico and the Rocky Mountains are forcing
producers to expand their production into more technically challenging and higher cost
areas.
http://www.ngsa.org/docs/pressrelease/2003/CERA6_11_03.pdf

[dilt1]

good reference type site for natural gas......

http://www.ngsa.org/portalpage/index.asp

[excel]

Natural Gas Sector.........Turn up the HEAT!
http://www.intellicast.com/Local/USNationalWide.asp?loc=usa&seg=LocalWeather&prodgrp=Surface...

[excel]

Be it MSSN or some another NG play. The time to get in is now. Read the story below.
It is confirmed now. The crisis is real.


Taskforce created to address looming natural gas crisis


To address the possibility of a looming natural gas emergency, House Energy and Commerce Committee Chair Billy Tauzin (R-LA) and House Resources Chair Richard Pombo (R-CA) will hold the first meeting of the Speaker's 18-Member Task Force for Affordable Natural Gas. Today's meeting kicks off a series of nationwide hearings aimed at finding short-term solutions to eliminate a crisis before it occurs.

"Last month, Federal Reserve Chairman Alan Greenspan testified before the Committee on Energy and Commerce and told us that nothing can be done in the short-term to increase our natural gas supply," Tauzin says. "Nothing is not an acceptable answer. That is why the Speaker has formed the Task Force For Affordable Natural Gas - to determine if something can be done about this pending crisis before it occurs."

The Speaker's Task Force for Affordable Natural Gas has been charged with identifying the causes of today's natural gas shortage, the impact of natural gas prices on the American economy and short and long-term plans to encourage a stable supply of natural gas to ease prices.

The panel is to report back to the Speaker of the House by September 30. 07/16/2003 11:04 a.m.CDT

http://www.agriculture.com/default.sph/AgNews.class?FNC=goDetail__ANewsindex_html___50279___1

[excel]

This company is in two sectors. The gaming sector which has unbelievable growth.
Here in Washington State new Casino and Bingo halls going up everywhere.
The other sector is the information sector.
Read about the cost savings along with the security features which are more important than ever in this crazy world we live in!

TTGG. Do some DD on this company. http://www.ttgg.net/
To understand this company better take the time to read the Corporate Summary................
http://www.ttgg.net/investor.pdf

Outstanding shares - 23 million. Float - 16 million

Read a recent PR. With Earnings coming up shortly this will surly help along with their sales growth..........

T & G2 Confirms Cancellation of 100 Million Shares Reducing Total Outstanding by More Than 80%

BERNARDSVILLE, NEW JERSEY, Jul 8, 2003 (CCNMatthews via COMTEX) -- T & G2 (OTCBB Symbol: TTGG) announced today that the Company has retired approximately 100 million shares of Its Class A Common Shares representing more than 80% of TTGG's issued and outstanding shares. Also, TTGG moves corporate office to a more spacious and functional office in Bernardsville, NJ due to the recent expansion of sales and rapid growth that TTGG has experienced and expects to continue to experience going forward.

The first block of approximately 67 million shares were returned back to the transfer agent and destroyed on May 29, 2003. The second block of approximately 33 million shares were returned out of attorney escrow and delivered back to the transfer agent and destroyed on July 7, 2003. This now translates to an immediate enhancement of value for TTGG's current shareholders.

The Company had issued the shares over the past 9 months in 2 separate issuances as part of proposed financings. TTGG management felt it was not in the best interests of the Company and its shareholders to proceed with the financings for various reasons. More importantly, the Company has been able to secure new financing under favorable terms that management feels is appropriate for the company - including a 5.5% interest rate and a 5-year term for repayment.

"We have installed approximately 50 gaming units in the Northwest region of the United States with approximately 25 more to be installed very shortly." stated T & G2's CEO, James M. Farinella. He went on to further say "We now have the company on track for continued growth and expansion in both of our wholly-owned subsidiaries"

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by T & G2 (TTGG) may differ materially from these statement due to a number of factors. TTGG assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
T & G2
Stephen Taylor
Investor Relations
[phone] or 1-866-409-8342
Website: www.ttgg.net
NEWS RELEASE TRANSMITTED BY CCNMatthews

[porscha]

excel - if just half of what that guy says comes true there's going to be another leg up in the oil and gas sector. greenspan talked about natural gas again in his testimony to congress yesterday. he doesn't seem to be backing off his dire predictions for that market into the future.

it certainly will be one to keep an eye on this summer.

here's a few gas plays i either own or have on my watch list:

LNG, MSSN, CRZO, NCN, TRU, TMR.

[excel]

One persons opinion about Natural gas. Interesting.
We shall see.

Dear Investor,
There are TWO WORDS...

...that most Americans don't ever want to hear together again: ENERGY
CRISIS.

Yet that's exactly what has the White House holding closed-door emergency
meetings...Alan Greenspan testifying to Congress...and the U.S. Senate
forming new energy hearings.

Several ill-timed factors are currently converging...and all indications
are pointing to another MASSIVE CRISIS beginning as early as this summer
or next winter, at the latest.

But this one will be different. There won't be long lines at the gas pump.
The oil barons at OPEC won't be the culprits behind it. And the numbers on
your license plate won't have any influence on what day you get in line.

The coming crisis won't be about the price of gasoline.

This time it's natural gas.

So far the popular press isn't talking much about it. But, my friend,
this crisis is REAL -- and IT'S IMMINENT.

-----------------------------------------------------------
New Report Tells the Whole Story. Get it FREE.
-----------------------------------------------------------
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from last year. Our monthly cash distributions are up more than 50% in the
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dividends are growing as much as 50% from here in some cases.
Our natural gas exploration and development stocks are up a rocking 20%
THIS YEAR...our top storage tank play has soared a whopping 95% (even
better news: at 12x p/e right now it's a double AGAIN from here)...and
we're just now cherry picking another small handful of well-positioned
stocks that I expect to DOUBLE IN PRICE or better over the next nine to 12
months as this crisis plays out.
This is big. And VERY lucrative. All the details -- the problem,
supporting facts and figures (including tables), ultra-timely research,
and stock recommendations -- are revealed in a brand-new report I've just
released, "The Natural Gas Crisis of 2003-2004."

You can get your FREE copy immediately online by signing up now.
Absolutely NO strings attached. Go here now:
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Without mincing words (if you've seen me on Fox TV's Bulls and Bears
program, you know I call ‘em like I see ‘em), we are in very deep guano
when it comes to natural gas supply and prices over the next four to five
years. Consider this:

* Right now, the amount of natural gas in underground storage is 50% BELOW
the five-year average and even further behind last year's storage levels.
* With only 8 weeks left in the prime injection season for rebuilding
supplies and 6 months left before the traditional heating season begins,
there is almost NO HOPE of refilling the storage kitty.
* For storage to reach the necessary 3 trillion cubic feet (tcf) level by
winter, producers need to pump about 13 bcf of gas daily between now and
November. In 2001 -- the peak of the last drilling and production frenzy
-- producers were only able to pump 11 bcf a day into storage tanks.
We're 2 bcf SHORT PER DAY at least, with production at DECLINING levels.
* At the same time supply is decreasing, demand is INCREASING rapidly.
Over 75% of new homes built in the last 15 years are heated AND cooled by
natural gas. Now 25% BIGGER than those built in the 70s and 80s, new
houses are using up gas at unprecedented rates. Industrial demand is only
dropping at a fraction of the rate of demand GROWTH from other areas. And
propane demand -- a derivative of natural gas -- is growing FASTER than
natural gas demand.
* This is NOT a one-year event -- it's a long-term secular shortage.
Demand for natural gas EXCEEDS new production. And without drastic
curtailment of gas usage OR dramatic expansion of exploration and liquid
natural gas importation (neither of which are likely in the short term),
the shortage will get worse, not better.

Mark my words, my friend: All of our proprietary research shows that this
supply/demand imbalance is going to spike prices from the current
$4.50-$6.00 range to a whopping $10-$15...and will wreak havoc on gas
consumers and energy utilities.

Our current $6 per thousand cubic feet price for natural gas is the
equivalent of $35 per barrel for oil. But in the gas patch, there is NO
OPEC and NO IMPORT CAPABILITY.

We are in a serious, serious crisis for natural gas...and the powers that
be are fiddling while Rome burns. Our national strategy for dealing with
this emergency appears to be "pray for a mild summer and completely
abnormal winter" or natural gas prices will skyrocket. Back in Kansas,
consumers are about to get CRUSHED

[excel]

Porscha. I'm no expert at supply and demand in this sector. But the article below states some supplies were affected, and gives another example of how it really affects the sector.
Waiting for more. LOL!

U.S. Gulf storm cuts at least 15 pct of gas supply
Tuesday July 15, 1:56 pm ET
By Joseph Silha


NEW YORK, July 15 (Reuters) - U.S. Gulf of Mexico pipeline operators said Tuesday that Hurricane Claudette had forced offshore natural gas producers to cut more supplies from their systems as platform crews were evacuated ahead of the storm.



Sources said the volume of gas production shut Tuesday was likely to exceed 2 billion cubic feet, or about 15 percent of the 14 bcf produced daily from the region's offshore rigs.

While supply cuts today were up sharply from Monday's U.S. Minerals Management Service estimate of 1 bcf, they pale in comparison to Hurricane Lili, which tore through key offshore fields last October, cutting about 10 bcf, or more than 70 percent of total Gulf of Mexico output.

Claudette, a far less powerful storm than Lili, was seen causing little damage to offshore gas lines or platforms as it slammed into the Texas coast midday at Matagorda Bay, packing winds of 80 miles per hour.

The National Hurricane Center in Miami said it expected the storm to weaken as it moved further inland.

Among the biggest production cuts was the 1 billion cubic feet a day reported Tuesday by Williams Cos. (NYSE:WMB - News) on its huge 7.7 bcfd Transco pipeline system, a main supply line to major Southeast and Northeast markets. The cuts were up from 400 million cubic feet a day reported Monday.

"We're still seeing production losses. We don't anticipate any interruption of market area deliveries. We're utilizing storage and line pack to keep deliveries whole," a company spokesman said, adding he expected to see some output back by Wednesday afternoon.

OTHER PIPES CUT

A Duke Energy Corp. (NYSE:DUK - News) spokeswoman said producers had cut about 400 million cubic feet of supply from its 5.9 bcfd Texas Eastern pipeline system, up sharply from just 38 mmcf Monday.

A spokeswoman for Florida Gas Transmission, jointly owned by Enron Corp. (Other OTC:ENRNQ.PK - News) and El Paso Corp. (NYSE:EP - News), said about 200 mmcf had been trimmed on its 2.1 bcfd system that flows gas from Texas to Florida and interconnects with several major interstate lines.

On Monday, FGT reported no producer shut-ins.

In addition, Kinder Morgan (NYSE:KMI - News) said there was a "small amount" of offshore supply cut on its 5.7 bcfd NGPL pipeline from Texas and Louisiana fields to the Midwest.

SOME PIPES UNAFFECTED

But several pipelines were still reporting little or no impact from the storm.

El Paso Corp. (NYSE:EP - News) reported no shut ins on its three major interstate pipeline, ANR, Southern Natural and Tennessee.

And a spokesman for Texas Gas Transmission, owned by Loew's Corp. (NYSE:LTR - News), said the storm had only a minimal impact on its 2.7 bcfd system.

The Minerals Management Service estimated that from Friday through Monday, U.S. Gulf of Mexico gas producers had shut in a total of 2.4 bcf as a precaution against the storm.

With further cuts today and some gas likely to still be shut in Wednesday as crews slowly return to offshore platforms, industry sources estimate Claudette will trim more than 6 bcf of Gulf of Mexico gas output.

Last October, Lili, which grew to a ferocious category 4 hurricane with winds of 145 mph, damaged several offshore rigs and production facilities and cut some 45 bcf of gas supplies over six days.

[porscha]

excel - the natural gas sector has been hot as a firecracker the past few months. natural gas prices have gone down the past few weeks but like you said hurricane season just started and from what i have read forecasters expect an unusually active season.

from CNN:

" Tropical Storm Claudette has strengthened into a hurricane and turned westward toward the Texas coast, with landfall predicted for Tuesday evening. Maximum sustained winds are at 75 mph, making Claudette a Category 1 storm -- and the first hurricane of the 2003 Atlantic season. "

[excel]

LOUD - Digital Media Sector - Website - http://www.loudeye.com/

I think you will discover through DD they do more than music, but imo that is what is currently driving the price up on a daily basis.
I plan on keeping a certain amount of shares to go long.
At some point in time this has to dip.
Once it does I will play it again.
Below is their latest PR which explains how they obtain constant revenues.
Remember this isn't the only area they are involved in.
Go to website to check it out.
After PR is a link to LOUDEYE Hub board with more DD there for you.

Loudeye Announces Strategy to Expand Into Wireless Digital Music Distribution Market in North America, Europe and Japan
7/10/2003 7:05:00 AM

SEATTLE, Jul 10, 2003 /PRNewswire-FirstCall via COMTEX/ -- Loudeye Corp. (LOUD) , a leading provider of services for the management, promotion and distribution of digital media, today announced its strategic expansion into the wireless digital music distribution market in North America, Europe and Japan, with the signing of service contracts with four leading providers of wireless content to subscribers of several major wireless carriers. Loudeye's wireless offerings include digital distribution services for rich media ring tones and enhanced wireless media delivery services for mobile phones and devices. Leading research firm IDC projects the U.S. ringtone market alone will grow to more than $1 billion by 2007.


By working with Loudeye, wireless carriers and entertainment companies can offer their mobile users the ability to purchase licensed rich media ringtones of music tracks, preview digital music samples and view information related to the music. Loudeye's rich media ringtones provide wireless consumers with a 3-30 second clip of the actual song recording compared to traditional mono or polyphonic ringtone offerings.

Loudeye recently signed contracts with a leading U.S.-based provider of wireless content as well as a leading Japanese provider of wireless content, each of whom will offer consumers rich media ring tones for mobile phones from a large library of content provided by Loudeye. Loudeye provides these customers content delivery and rights clearing services. Loudeye receives a wholesale fee for each rich media ringtone purchased and downloaded by a wireless subscriber and pays royalties to the appropriate music label. The ring tones are delivered through Loudeye's proprietary digital music archive, digital distribution systems and broad relationships with music labels. Loudeye initially will be providing content from The Orchard, the largest distributor of non-major label music in the world, whose catalog consists of content from over 5,000 independent labels and thousands of artists from 30 countries.

Loudeye is also providing enhanced wireless media delivery services including music data and identification services. Loudeye recently signed contracts with two customers for these services, for which Loudeye is paid a service fee for access to its metadata database, including metadata for over 4 million tracks and weekly new releases.

"The growing popularity of wireless music in the U.S., Europe and Asia provides a significant opportunity for artists to connect with their fans in new ways," said Steve Haase, senior vice president of business development of The Orchard. "Through their licensed music archive and distribution systems, Loudeye enables The Orchard to make available over 120,000 rich media ringtones to this growing marketplace. We look forward to providing our artists a new channel to sell their music to a global wireless audience."

"Our digital media management and distribution systems were built on a highly flexible and scalable platform capable of supporting emerging opportunities in the marketplace," said Jeff Cavins, Loudeye's president and chief executive officer. "Wireless media delivery is reaching an important inflection point in its adoption, particularly overseas where it's seeing tremendous growth. The extension of our services into the mobile media space demonstrates our strategy to provide turn-key digital media distribution services to support all means by which digital music can be purchased and enjoyed by consumers."

About Loudeye Corp.

Loudeye provides the business infrastructure and services for managing, promoting and distributing digital content for the entertainment and corporate markets. For more information, visit www.loudeye.com.

LOUDEYE Board..........
http://www.investorshub.com/boards/board.asp?board_id=1805

[excel]

MSSN - Oil and Gas Sector.

Mission Resources Corp
1331 Lamar Suite 1455 Phone: [phone]
Houston TEXAS 77010-3039
Fax: [phone]

Mission Resources Corporation. The Company's principal activity is to acquire, develop and produce crude oil and natural gas primarily in the Permian Basin of West Texas, along the Texas and Louisiana Gulf Coast and in the Gulf of Mexico. The primary business objective of the Company is to create and pursue corporate mergers and acquisitions, realize the value of core properties through exploitation and development and employ technical expertise to pursue growth through low- to moderate- risk exploration.

The parts in bold in below PR describe why I think more PR's are coming shortly.

Mission Resources Announces Early Success in its 2003 Drilling Program

HOUSTON, Jun 30, 2003 (BUSINESS WIRE) -- Mission Resources Corporation (Nasdaq:MSSN) announced today the early success of its 2003 drilling program. Of the first six wells, the Company has had three discoveries, two natural gas and one oil. The company also drilled one successful natural gas development well. The seventh of the 13 well drilling program is scheduled to spud this week. The details are as follows:

Onshore Gulf Coast Region

An exploratory/development well with multiple objectives located in South Louisiana has reached a depth of 12,800 feet. Electric logs indicate 53 gross feet and 42 net feet of apparent gas pay in the exploratory Marg howei sand. Porosities range from 18% to 33% and average 22%. While drilling the sand, strong gas shows required increased mud weights to continue drilling. Pending results of logging the deeper Camerina sands, this well may allow for a dual completion. Mission Resources holds a 77% working interest in the Marg howei sand and a 68% working interest in the Camerina 2 Sand Unit.

Mission also recently participated in the Fontenot #1 well, located in Reddell Field, Evangeline Parish, La. This development well was drilled to a total depth of 13,225 feet and encountered 190 feet of net pay within the Upper, Middle, and Lower Wilcox formations. Casing has been set and production is expected to commence in early July 2003. The Fontenot #1 well was preceded by three successful recompletions at Reddell in early 2003 that yielded gross production in excess of 5,500 MCF/D and 1,400 BO/D (net - 605 MCF/D, 154 BO/D). Additional recompletions and drill wells are expected in this field. Mission holds a 15% working interest in this field.

In West Lake Verret Field, St. Martin Parish, La., Mission owns 100% working interest in the #145 Jeanerette Lumber & Shingle. This exploratory well was drilled to 6500 feet and logged seven feet of oil pay in the H4 Sand. A completion rig is currently on location and production is expected to begin in early July.

One South Louisiana exploratory well in which Mission Resources held a 25% working interest was plugged and abandoned as a dry hole after being drilled to a depth of 15,380 feet.

A planned 16,000 foot test of the Lower Wilcox Sands in Goliad County, Texas is currently rigging up and scheduled to spud this week. Mission holds a 20% working interest in this prospect.

Offshore Region

Mission participated in a exploratory well in the Eugene Island area which was drilled to 5,671 feet and found 70 feet of net pay in several zones. The primary objective, the 3500 foot Stray Sand, flow tested gas and will be developed with directional wells having anticipated initial rates of 7,000-12,000 MCF/d per well. Plans call for setting a platform and drilling several development wells to develop the 3500 foot Stray Sand and the other reservoirs. Production from the field is expected to commence in the first quarter of 2004. Mission holds a 7% working interest in this field.

One offshore well in which Mission has a 1.2% interest is being plugged and abandoned.

"We are very pleased with the early results of our 2003 drilling program," said Robert L. Cavnar, Mission's chairman, president and chief executive officer. "We are continuing the implementation of this program through rigorous evaluation and disciplined execution."

The Company will continue to provide further updates on the 2003 Drilling Program as information becomes available.

Link to Form 4 insider buys.
Click on financial reports.
http://www.mrcorp.com/financialreports.asp

If any company insider would know whats going on it would be these two...............

EELLS JOHN L - SVP Exploration & Geoscience

MUNSELL MARSHALL - VP Land & Land Administration

It is my belief that with no earnings warning in below PR while combined with insider buying before earnings...........
I'll leave the conclusion up to you.
But I will say this. The NG sector is hot out there, and I expect it to get hotter as hurricane season comes into play and shortages develope even more.
This stock in this sector I believe is under valued.
I believe earnings on August 12th will prove that.
From what I have seen lately it has a .15 range of going up and down.
Imo play it for .10 flipping until news takes it to next level. I have long shares for leading up to earnings and flip shares to pay the bills!

Mission to Release Second Quarter Earnings on Aug. 12, 2003

HOUSTON, Jul 10, 2003 (BUSINESS WIRE) -- Mission Resources Corporation (Nasdaq:MSSN) said today that it will issue its second quarter 2003 earnings release before the market opens on Tuesday, Aug. 12, 2003. The company will also hold its quarterly conference call that morning at 10:00 a.m. Central Time.

To participate in the call, dial 877/894-9681 five to 10 minutes before the call begins. Please reference Mission Resources, conference ID 1685418. The call will also be broadcast live over the Internet from the company's Web site at www.mrcorp.com.

A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until Tuesday, Aug. 26, 2003. To access the replay, dial 800/642-1687 and reference conference ID 1685418. In addition, the webcast will also be archived on the company's Web site.

[porscha]

mortgage sector - i've had some luck in the mortgage loan sector lately. although mortgage interest rates seem to have leveled out for now, it does look like new home sales and re-finances are still going strong. there still may be some money left to make in this sector.

HIX is a REIT that has done well for me. it's currently selling in the $12.00 range and pays a .115 monthly dividend. the good thing about HIX is they declare their monthly distributions 3 months in advance.

HCM in another one that has had an even greater price appreciation over the past few months. their last quarterly dividend was about .30 so at it's current price in the mid $13.00 range it still has a great dividend return.