Message-ID: <6397794.1075861159707.JavaMail.evans@thyme> Date: Sat, 17 Nov 2001 07:12:17 -0800 (PST) From: bounce-smallcapdigest-95352d@lyris.smallcapnetwork.net To: alewis@ect.enron.com Subject: FieldPoint Petroleum: November Focus Stock Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: "SmallCap" @ENRON X-To: alewis@ect.enron.com X-cc: X-bcc: X-Folder: \ALEWIS (Non-Privileged)\Lewis, Andrew H.\Deleted Items X-Origin: Lewis-A X-FileName: ALEWIS (Non-Privileged).pst [IMAGE] =09 [IMAGE] Dow Jones [IMAGE] 9866.99 - 5.4 9:08 pm EST, Friday., November 16,= 2001 [IMAGE] NASDAQ [IMAGE] 1,898.58 1.99 For info, visit www.smallcapnet= work.net . [IMAGE] S & P 500 [IMAGE] 1,138.65 - 3.59 To be removed, please= click here . [IMAGE] Russell 2000 [IMAGE] 451.31 + 1.92 VOLUME 01: ISSUE = 15 =09 [IMAGE]=09 Ray Reaves, President and CEO of FieldPoint Petroleum, is sharpening his= pencil and putting on his poker face. Like a crazed bargain hunter heading= for the mall just after the Christmas Holiday, Ray is getting ready to go = shopping. [IMAGE] Just as he has during past cyclical oil price declines= , Ray knows he can purchase assets from the behemoths of the US Oil patch a= t bargain basement prices for the next six months. Companies like Devon Ene= rgy (AMEX: DVN) will eliminate producing properties which were profitable a= t $25 per barrel, but not at $18. Ray runs a lean and mean company which ma= kes money through all the market cycles, and he perceives an upcoming oppor= tunity to enhance his asset base. The editors of the SmallCapDigest feel = this stocks is poised for a short term move to at least $2.50, which would = represent 31% return on invested capital. Investors with a 12 to 18 month h= orizon have the potential for a $5 plus with the next cycle of surging oil = prices. As oil prices drop, Ray Reaves is getting ready to add assets to Fi= eldPoint. The SmallCap Digest has discovered a growth company in the oil = and gas sector that is poised to surge. FieldPoint Petroleum (OTC BB: FPPC)= has taken much of the guessing out of investing in this sector. The compan= y has executed and excelled in every market environment. FieldPoint has sho= wn a propensity to maintain profitability and grow revenues at very impress= ive levels by making the right decisions. The company business is hedged in= such a way that it has and will continue to make money regardless of commo= dity prices. [IMAGE] November Focus Company Report: FieldPoint Petroleum= (OTC BB: FPPC) Stock Listing: OTC BB: FPPC Estimated Shares Issued and O= utstanding: 7.36 million Estimated Public Float: 2.9 Million Closing Price = and Volume: $1.90 on 85,700 shares Market Capitalization: $12.5 Million Fis= cal 2001 Revenue: $2.6 million est 52 High and Low: $2.28/$1.34 FieldPoin= t Petroleum Corporation (OTC BB: FPPC) is engaged in the acquisition, opera= tion and development of oil and gas properties, which are located in Oklaho= ma, Texas and Wyoming. FieldPoint looks to continue expanding in Texas and = Wyoming, as well as in other Rocky Mountain and mid-continent states such a= s Montana, North Dakota and Oklahoma. It is a primary objective of the Comp= any to operate most of the oil and gas properties in which it has an econom= ic interest. Company Analysis FieldPoint is regarded in the industry as= a nimble low cost provider. Unlike many of its' competitors, FieldPoint co= nsistently generates positive cash flow, and has a history of acquiring pro= perties far below market prices. Many poorly run oil and gas companies get = themselves in a position where they must raise cash to survive. These distr= ess sales allow FieldPoint to purchase these companies' properties at price= s where the production from the land pays for the purchase itself. FieldPoi= nt takes advantage of the competition through efficiency. The company's ste= llar performance in the past has created confidence and tremendous leeway w= ith financiers. FieldPoint has access to capital that will allow for growth= while most of its' competitors will experience contraction. The company's= track record speaks for itself. Below is the revenue growth FieldPoint ha= s experienced in the past three years. [IMAGE] As depicted in the table= , revenues grew 78% from '99 to '00, and are on track to grow 59% this year= . Growth has been so prolific that the company was recently recognized by= the Oil and Gas Journal as one of the Top 200 Independent Oil and Gas Prod= ucers in the U.S., and the 8th fastest growing publicly traded Oil and Gas = Company in the US. The company currently has 50% of its monthly oil produ= ction hedged at $22 per barrel, thereby virtually assuring continued positi= ve cash flow. Existing Properties [IMAGE] Chickasha Field, Grady C= ounty, Oklahoma. Giddings Field, Fayette County, Texas. Big Muddy Field, = Converse County, Wyoming. Serbin Lee Field and Bastrop Counties, Texas. = West Allen Field, Pontotoc County, Oklahoma. Hutt Wilcox Field, McMullen= and Atascosa County, Texas. FieldPoint currently currently has ownersh= ip interest in 338 productive wells located in three states, Texas, Oklahom= a, and Wyoming. FieldPoint intends to continue expansion in Texas and Wyomi= ng, as well as in other Rocky Mountain and mid-continent states such as Mon= tana, North Dakota and Oklahoma. Management is constantly keeping an eagle'= s eye on potential properties that will increase FieldPoint's asset base. = Plans For Growth [IMAGE][IMAGE] As depicted in the bar charts, growth i= n both production and reserves has grown consistently since 1997. In 1996, = FieldPoint had $1 million in booked assets from which they derived $640,000= in revenue and $115,000 in net income. The average price of oil in 1996 wa= s approximately $18-$20 per barrel. In 1997, prior to going public, FieldPo= int's results were slightly improved as the price of oil per barrel increas= ed to an average of $19-$21, but their asset base held steady. At the end= of 2000, FieldPoint completed another acquisition that boosted assets to $= 4.5 million, and through the third quarter assets stood at $4.8 million. In= the meantime, revenues have jumped from $1.6 last year and are projected a= t $2.5 million this year. As a low cost producer, FieldPoint successfully i= ncreases production and lowers operational expenses every time they make an= acquisition. Over the course of the next 36-48 months the company hopes = to accumulate over $50 million in assets. Past performance would indicate t= his is not an unrealistic goal. That is a tenfold increase from where the c= ompany's assets are today. For investors, the market capitalization of the = company should reflect the increase in assets. A $50 million dollar asset b= ase would value the company at approximately $42 million dollars or $5.75 p= er share. That is an annualized gain of over 57% over a four year period. = Market Conditions A dispute between OPEC which produces about 40% of th= e world's oil and non-OPEC oil producing countries have pushed prices to th= eir lowest levels since mid-1999. Oil markets opened lower Thursday after t= he Organization of Petroleum Exporting Countries decided Wednesday not to c= ut its output quotas unless non-OPEC producers agree to go along. Russian P= rime Minister Mikhail Kasyanov is quoted by the Financial Times as saying "= We are not going to at any time reduce production on a big scale; it's impo= ssible". With oil prices taking a nosedive, many poorly run and poorly f= unded oil and gas companies will be feeling the squeeze. Lower oil prices w= ill deal a blow to the oil and gas industry, resulting in less investment, = reduced production and ultimately more volatility as supply and demand fluc= tuate. This means FieldPoint will be privy to some very attractive opportun= ities to purchase land at very favorable prices. However, oil prices may= not stay depressed next year. OPEC says it will cut output on Jan. 1 only = if non-OPEC producers act. So far, Oman and Mexico have pledged output cuts= -- of 50,000 barrels a day and 100,000 barrels a day, respectively -- and = Norway, the world's third largest exporter, is still considering whether to= contribute. But all three countries say they will only reduce production i= f Russia pledges to cut its output by some 300,000 barrels a day. Conclus= ion FieldPoint is currently trading at $1.90 but in the near term has the= potential to reach $2.50 due to the sizable opportunities the company curr= ently has to expand it's asset base at rock bottom prices. We expect the st= ock to reach this target in the next 30 days. A target of $2.50 would mean = a 31% short term profit. This doesn't match the company's growth rate but i= t is certainly respectable, and much higher on an annualized basis. Grow= ing companies need to reinvest in themselves. The challenge is to make mone= y while growing. FieldPoint applies the cardinal rule of business: MAKE MON= EY. CEO Ray Reaves has demonstrated an uncanny ability to propel growth whi= le running a profitable business. The goal of the company is to increase it= s' asset base while maintaining profitability and providing shareholders a = return on their money. Over the course of the next 36-48 months the comp= any expects to have over $50 million in assets. That is a tenfold increase = from where the company's assets are today. If the company's past performanc= e is any indication, it is an obtainable goal. For for investors, the marke= t capitalization of the company should reflect the increase in assets. A $5= 0 million dollar asset base would value the company at approximately $42 mi= llion dollars or $5.75 per share. That is an annualized gain of over 57% ov= er a four year period. FieldPoint is structured to take full advantage o= f volatility because the company thrives on outsmarting its' competitors. T= he company is a growth stock that has the full confidence of its' financier= s. This access to capital allows the company to increase its' assets while= benefiting when the market rebounds. Investors looking for a well run o= il and gas company that exhibits outstanding growth should own FieldPoint P= etroleum Corporation (OTC BB: FPPC) in the risk end of their portfolio.=09 D I S C L A I M E R : The SmallCap Digest is an independent electronic p= ublication committed to providing our readers with factual information on s= elected publicly traded companies. SmallCap Digest is not a registered inv= estment advisor or broker-dealer. All companies are chosen on the basis of = certain financial analysis and other pertinent criteria with a view toward = maximizing the upside potential for investors while minimizing the downsid= e risk, whenever possible. 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