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$95.44 0.97 (1.03%)
5/16/2008 4:02 PM

BP Prudhoe Bay Royalty Trust (BPT)

CAPS Rating:
****

The Company operates as a grantor trust.

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6

Avatar chitownjester (82.18) Submitted: 2/22/08 2:48 PM : Outperform Start Price: $80.73 BPT Score: 11.14

I work for BP. Prudhoe Bay is a big asset for the company, and they are plowing more than 1 Billion into it to improve recovery from existing wells, which will result in additional 1.5 billion barrels over the remaining life of the well. That does not even take into account the 20 Billion barrel heavy crude that is proven, 800 million of which is economically viable at today's extraction techniques and price per barrel. As the price continues to move up over time, and technology improves, Prudhoe Bay will continue to crank out the oil, and the money.





All of this, on top of 400,000 barrels per day output now. That amount equals 40 Billion in revenue on the street, and this stock has a market cap of only 1.8 Billion.

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Avatar newscrnname (98.04) Submitted: 4/06/08 10:13 AM

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Since you work for BP, could you comment on how long you think this trust might exist?

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Avatar big3john (66.86) Submitted: 5/08/08 12:44 PM

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I have had this one in my ira for nearly 5 years. I believe that the trust gets the first 100K barrels
of production each day with dividend over 10%. I like it better than the Canadian trusts that get
a 10% tax on the dividends since i'm not a Canadian.

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Avatar dond261 (98.40) Submitted: 5/14/08 10:22 AM

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The BPT payout is based on 16% of the first 90,000 barrels per day.

Canadian trust taxes are 15% for non Canadians.

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