Replies to post #7253 on Value Microcaps Free-For-All

[MikeDDKing]

Bunky re: OIL.TO

I'm not Bobwins but I will chime in...

I think your calculations are on the right track.

One comparison point is EGY. After tax earnings for the last year for EGY were 34% of revenue. A large percentage of this went to royalties and taxes. I think the tax percentage will be lower for OIL.TO. Overall, I think your estimate of what goes to the bottom line is a bit conservative. I would guess 40%. I've been trying to find other companies that are good comparisons but so far I haven't found a good company. I'm looking for companies that drill offshore and are primarily in oil. I'm sure there are others but so far I haven't found another good comparison. I'm sure Bob can name some.

I think the PE is conservative. I would use at least a 10.

I think the bigger risk in the calculations is the 30,000 boe/d equivalent. The question is how sustainable is that number. How much will that number decline after 3 months, 6 months, etc. Of course, they have other sources of production that they are going after so these can offset production declines as they come on-line.

Adding this together, I think this stock could run to $10 in 6 to 12 months.

I'm interested in Bobwins' take on OIL.TO. I'm hoping to buy OIL.TO on Monday.

Also, HBM is my second largest holding. I can't wait until the second quarter results are out as I think they will give the stock a big boost.

Mike

[Bobwins]

without having any previous financials with good production expenses for the North Sea, I think your guesstimates are in the ballpark. If they hit additional wells, I think their p/e ratio could end up in the 15 to 20 range and you could see additional price appreciation. I used $60/barrel to be a little conservative. Looks undervalued but until they start producing and giving us financials, it will be hard to guess. Once they do start giving us financials, it will be easier to value using cashflow instead of eps because the depletion calculation could be all over the map until we have more experience with the field, it's total resources and the rate of depletion.

Let's hope we are conservative, they hit their other exploratory field, their 4th Brenda well and nothing bad happens in the North Sea for awhile. Bob

[kozuh]

Bobwins, keep your good eye on CWQ.v !!!!!

Curlew Lake Announces It Has Signed A Historic Oil & Gas Agreement Along With An Initial Significant Land Acquisition Deal With The Metis In Alberta, Canada
Wednesday June 21, 10:00 am ET

LANGLEY, BRITISH COLUMBIA--(MARKET WIRE)--Jun 21, 2006 -- Curlew Lake Resources Inc. (TSX VENTURE:CWQ.V - News)(Other OTC:CWLXF.PK - News) announces that it has entered into a significant joint venture agreement with Metis Moccasin Resources Inc., a private Alberta company, and Propel Energy Corp., a private Alberta company. Under this agreement Curlew Lake will have the right to acquire a 47.5% working interest before payout, convertible to 33.33% after payout, in oil and natural gas leases secured by the joint venture partners on Metis Settlement lands. The joint venture plans to continue acquiring oil and natural gas leases on Metis Settlement lands. Metis Settlement Lands in Alberta include a total of 17 Townships (36 square miles per Township), within the eight Settlements on the Lands.