call to company , page-7

An exploration company of course needs share control and fiscal responsibility but if they do not pay a dividend and by nature their in-ground reserves are depleting, their value (and I would suggest their SP) is solely based on their ability to find oil. Production and revenue is nice but if you do not replace your reserve base (and grow by finding additional net reserves), you fade away.

Tap started with $100MM in the bank from all the discoveries/revenues generated from the Ted Jacobson era which ended 5 years ago.

From their annual reports

... ............. Tap Share.........................Tap Share Price
................ Total Hydrocarbons.................approximate
................ P&P (mmboe)........................year end
Dec 31, 2005.... 10 ............................. $2.80
Dec 31, 2006.... 7.5 ............................ $1.40
Dec 31, 2007....6.5 ............................. $2.13
Dec 31, 2008....5.8 ............................. $0.85
2009 no discoveries and normal reservoir depletion......$1.15

all time high on my chart is $3.11 in mid Aug 2005

So every year for the last 5 years Tap has depleted their remaining reserves, paid no dividend and spent the profits on dry holes (staff etc.). Hope springs eternal for 2010 but if this was a professional sports franchise, I think the team would have a new coach.

DYOR