CALGARY, June 9 /CNW/ - With all of the recent merging, acquiring,
restructuring and drilling in the Canadian junior and energy trust sectors,
the people involved are running hard - maybe even harder than ever.
A survey of first quarter results for Canadian juniors and trusts by
Iradesso Communications, the iQ report, shows some high turnover rates. Of the
83 publicly traded junior companies with production between 500 and 15,000
barrels of oil equivalent per day (boe/d), 20 companies (or 24 percent) are
new to the subgrouping since the last survey was done six months earlier. In
addition, five of the 31 Western Canadian conventional energy trusts are new
to the survey.
"There are more conventional energy trusts and more publicly traded
juniors in this report than we have ever seen." said Iradesso President Peter
Knapp "Company lifespans are short and everybody appears to be in a rush.
Geologists, engineers and business people don't want to miss their chance to
make big dollars while the commodity cycle is in their favour."
The iQ report compares statistics for juniors and trusts ranging from
cash flow multiples to changes in quarter-over-quarter production levels. The
report is available free of charge to investment community members and
individual investors who contact Iradesso Communications through their online
form available at: www.iradesso.com/i/IOR/newsserviceform.html
The latest report shows that juniors have a much higher weighting to
natural gas production than trusts. For juniors, the median weighting was 69
percent natural gas production, while trusts had a median weighting of 53
percent natural gas. Natural gas lends itself to exploration activities while
the other alternative, crude oil, is a more mature resource is more suited to
long-term recovery efforts normally associated with trusts.
The iQ report also shows the average share price increase for juniors
during the first quarter of 2005 was 16 percent. The average total return for
the conventional trusts during the quarter was eight percent including unit
price changes and distributions paid during the period. In the subsequent two
months of April and May, junior share prices lost six percent on average,
while energy trusts lost an average of two percent when combining unit prices
Junior companies boasting the biggest share price gains in 2005 up to May
31 were Pilot Energy Ltd. (TSXV:PGY - up 99 percent from $0.75 to $1.49),
Accrete Energy Inc. (TSX:GZ - up 92 percent from $3.85 to $7.40) and Petrobank
Energy and Resources Ltd. (TSX:PBG - up 63 percent from $2.32 to $3.79). For
juniors, median cash flow multiples are slightly lower on a quarter-over-quarter basis. The median enterprise value fell to 7.6 times annualized cash
flow from eight times after the third quarter of 2004.
The three trusts with the greatest increases in unit price plus
distributions were Petrofund Energy Trust (TSX:PTF.UN - up 22.5 percent),
Vermilion Energy Trust (TSX:VET.UN - up 18.9 percent) and Bonavista Energy
Trust (TSX:BNP.UN - up 18.2 percent).
Iradesso Communications is a Calgary-based company specializing in full-service investor relations, investment research and corporate communications.
Iradesso works on an ongoing basis with numerous junior oil and gas companies
and energy trusts including Crescent Point Energy Trust, Connacher Oil and Gas
Limited, Delphi Energy Corp., Forte Resources Inc., Purcell Energy Ltd.,
Sequoia Oil and Gas Trust, WaveForm Energy Ltd. and Zapata Energy Corporation.
For further information: Peter D. Knapp, President, Iradesso Communications
Corp., 603, 550 - 11 Avenue SW, Calgary, Alberta, T2R 1M7, T: (403) 503-0144,
x202, E: firstname.lastname@example.org, W: www.iradesso.com
CO: Iradesso Communications Corp.
NI: ECOSURV OIL
-0- Jun/09/2005 15:32 GMT
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