STOCKCHASE

Calfrac Well Services Ltd

33.160

Has been beaten up because of problems in India. Those problems are still there in terms of getting a higher price and getting production going. Now starting to drill in Indonesia and in Trinidad. Have 6 high impact plays that are going to be drilled, 4 in Indonesia and 2 in Trinidad, before March 31st year end for them. $75 target.

2012-04-05

DON'T BUY

Nexen Inc

NXY-T

17.670

Have had problems because on Long Lake. Yemen is over as well. Very cheap on the metrics but outside of the new project that just came on in offshore Nigeria, there is really no sexy sizzle to this story. Cheap but can always stay cheap.

2012-04-05

BUY on WEAKNESS

Precision Drilling

PD-T

9.480

(Market Call Minute.) Love the name longer-term. This is a trading stock, not in investing stock. Thinks you will see this below $7 at which point it would be a table pounding Buy.

2012-04-05

BUY on WEAKNESS

Trican Well Service Ltd.

TCW-T

14.030

(Market Call Minute.) Likes the name longer-term. Great company but natural gas is a big part of their business.

2012-04-05

HOLD

Vermilion Energy Inc

VET-T

46.970

Good company and very good operators. Decent yield. Growing on an international basis.Good company and very good operators. Decent yield. Growing on an international basis.

2012-04-05

DON'T BUY

CFW-T

26.440

If there is a 20% correction in the oil and gas sector, we are going to have a greater correction in the service stocks. They are the high beta portion of the oil patch. They move much better in the upside. With lousy gas prices, the amount of fracing is less and the amount of activity will start being less.

2012-04-05

Comment

0.020

Oil. Everybody is concerned about weakness in natural gas. Oil stocks are also going to get hit. Oil prices are around $103 and have been up to $110. Everyone has been building inventories because of disruption concerns in the Middle East if the Strait of Hormuz gets closed. US inventories are now up 12.4 million barrels. OPEC is producing about 90 million barrels. Aemand in winter is about 88-88.5 million. In the spring, demand goes down by about 1.5 million barrels. Right now there is about 3 million barrels a day production greater than demand. Everybody is getting to the point where their strategic reserves are full and their commercial reserves are getting to capacity. If OPEC does not cut back, there will be a glut of oil. Expecting oil will go back down to the mid-$70 this summer if there is not an incident in the Middle East. US has 97 days of inventory where they normally should have 82. About me another tough year in 2013 and once we get through this, there will be another energy cycle started. If demand grows to 1 million-1.5 million a day in each of the next few years,there will be much higher oil prices and also, hopefully, natural gas also gets resolved.

2012-04-05

Comment

0.020

Natural gas. If a company is producing liquids rich natural gas, they sold the liquids and are prepared to give the natural gas away almost nothing. Everyone in the US that is producing liquids rich natural gas is getting about $2.10 and may be willing to take under $2. AECO is about $1.58-$1.59 and the price could break $1. Historically, you get a bounce between August and November and he expects that somewhere in that window there will be a bottom but it will be at lower prices somewhere below $2 for IMAX and below $1 for AECO. Heading into the winter of 2012-2013, we may see $4 in the US and $3 in Canada.

2012-04-05

Comment

0.020

Liquid natural gas? This is a tough one because we still don't know about those pipelines. Native land claims are big issue. He doesn't know how you play this on the pipeline or pipeline construction. There will be lots of ways to play once there is a game plan. He would go to the cheap side right now, which are the companies that own the gas that might go into the pipes.

2012-04-05

WATCH

1.290

Big fan of this story. Has a target of $4. Being hurt now because of the natural gas malaise. Also one of their wells in the Montne, which was more of an oilier well, didn't have as good results as their 1st couple. Have a great land spread and is one of the lowest cost structured companies. Very cheap, but could get cheaper.

2012-04-05

BUY on WEAKNESS

1.600

Stock has been hammered. In August they are going to bring on the natural gas Brea field in Europe. European natural gas prices are much higher than in North America. Stock is languishing because 1) everyone is waiting for production, 2) costs are about 17% higher than they predicted and 3) it has been delayed by about a month. He has a $3.32 target. Below $1.25 would be a table pounding Buy.

2012-04-05

PAST TOP PICK

Galleon Energy Inc.

GO-T

2.160

(A Top Pick May 10/11. Down 40.32%.) Doing about 15,000-16,000 barrels a day of which 37% is liquids, 5700 BOEs a day. Has a nice spread in the West 5 area. Cheap but it could get cheaper.

2012-04-05

PAST TOP PICK

2.370

(A Top Pick May 10/11. Down 54.37%.) Have sold their gas assets and paid off all their debts. Focused now on the Cardium oil. Doing about 67% liquids. His target is $4. Could get cheaper in the next two quarters. Table pounding buy under $2.

2012-04-05

TOP SHORT

3.870

Really a Sell but a Short for hedge fund people. This is probably a 2 for 1 sale. Have been talking 20,000-25,000 production a day but they have never hit those targets. Spent $56 million to “not grow” their production! Cash flow has dropped from $0.17 to $0.11.

2012-04-05

BUY on WEAKNESS

0.720

(Market Call Minute.) Cheap. His target is $1.20. Would buy under $.60.

2012-04-05

BUY on WEAKNESS

6.150

Just announced some production issues in Colombia. Q4 in 2011 has production of 18,600 barrels and will have 16,000 in Q1 this year indicating a problem in production. Doing about $1 of cash flow. Under $5 would be a really attractive Buy. His target is $7.

2012-04-05

Comment

Trinidad Drilling Ltd

TDG-T

6.820

(Market Call Minute.) Cheap but they get a lot cheaper.

2012-04-05

TOP PICK

CASH

0.010

He is holding 20% cash but he recommends clients have 25% to 35% cash and be ready to be a buyer in the fall when we get the shake up below 200 on the index.

2012-04-05

DON'T BUY

0.040

(Market Call Minute.) Don't go near this one.

2012-04-05

PAST TOP PICK

HBP NYMEX Nat'l Gas Bull+

0.820

(A Top Pick May 10/11. Up 43.86%.) Located in Kurdistan. Their wells can do 10,000 barrels a day when they come in. Good management. Target of $2.10.

2012-04-05

Comment

HNU-T

2.440

Until the industry starts shutting in a lot of natural gas, until we have LNG potential and more compressed gas vehicles on the road, natural gas does not have a positive scenario.

2012-04-05

SELL

Ithaca Energy Inc.

IAE-T

3.090

If there is no takeover, the price could drop to $2. To try and make $.30 or to lose $1.10, he doesn't like the trade-off.

2012-04-05

Comment

0.075

Very cheap. NAV of about $.20. Company is now starting to drill again. In Egypt so there is country risk. Making a major acquisition with a private company in Egypt that will give them major oil exploration in the Gulf of Suez. There could be an increase from today's 1000-1100 BOEs a day that by the end of Q1 2013 could think of North out 8000-9000. His target is $0.30.

2012-04-05

DON'T BUY

Forent Energy

FEN-X

0.130

(Market Call Minute.) Concerned about the balance sheet and that they did not get the breakthrough in Nova Scotia.

2012-04-05

BUY on WEAKNESS

41.350

One of his favourites in large caps. Have done a great job until their problems with Horizon and getting that on stream is going to take a bit of time. There are 2 parts to the premium. 1) Middle east because of supply coming off and 2) weaker US$ issue. Weaker oil would bring the stock down so if you see it in the Mid $30's range would be a fabulous buy.

2011-05-10

PAST TOP PICK

75.350

(A Top Pick Feb 22/11. Down 11.44%.) In negotiations with the Indian government for higher gas prices. Meanwhile stopped all exploration. Involved in a lot of drilling and you could get good news any day.

2011-05-10

BUY on WEAKNESS

Nexen Inc

NXY-T

22.910

Has fallen into little holes on the ground between the Long Lake situation and and the UK tax regime. Also Yemen is not a stable country to do business in. If oil drops below $90 you may get a chance to buy this below $20. Have good assets. Bringing on new projects on shore in the UK. Prefers Canadian Natural Rsrcs (CNQ-T), Talisman (TLM-T) and Encana (ECA-T).

2011-05-10

PAST TOP PICK

2.650

(A Top Pick Feb 22/11. Up 17.33%.)

2011-05-10

SELL ON STRENGTH

2.700

Half value is in Romania and half is in UK North Sea. Problems getting go-aheads from Romanian government and going into arbitration, which will take a long time. Doesn't have go-ahead on the Brea field plus the last drill on Cladhan wasn't very good.. AGM is next week and hopes to hear good news. $1.50 on the downside if they don't get UK going and maybe $3.50 upside.

2011-05-10

TOP PICK

Galleon Energy Inc.

GO-T

3.640

Doing 13,500-14,000 BOE's a day and expected to average 14,000 a day. Got into the doghouse when involved with the Pasqua and Cardium. Had to sell assets. Doing 37%-38% oil and liquids which is over 50% of revenues. Fabulous value story with BV of $7.97. Has an NAV of $5.48 at the end of 2010. Expecting $1.50 annualized cash flow at the end of 2011.Very cheap.

2011-05-10

TOP PICK

6.010

Fabulous winter drilling season. Were doing 9,000 BOE's a day but are now doing 12,000. Expecting over 10,000 this year. His NAV is $8.23 and looking for a cash flow of about $2 run rate.

2011-05-10

Comment

1.100

Shale gas Montreal-Quebec City corridor. Very good partner in Talisman (TLM-T), who is also the operator. They know procedures that have to be done but farmers are nervous and water tables are important so there has to be education at the local level and they've done a very good job. Market doesn't know when they are going to get a window go-ahead.

2011-05-10

BUY

Zargon Oil & Gas Ltd

ZAR-T

22.050

Very good management. Good operating costs. Good mixture between the 2 commodities. Good yield of almost 8%.

2011-05-10

TOP PICK

0.570

(A Top Pick Feb 22/11. Up 4%.) Kurdistan. In the process of finishing a well in the next week or two. Talisman is a partner and will be bringing a rig to drill in the 4th quarter. Have $0.35-$0.40 of cash. Look for news in the next couple of weeks.

2011-05-10

BUY on WEAKNESS

Canadian Overseas Petroleum

0.195

Egyptian oil, Sees $0.25 of value between on their 1,200 BOE's a day production. Market is leaving the story alone because of the Egypt thing. They know their way around Egypt, Will be drilling high impact wells again in the 4th quarter. Likes the story. Mid-teens to the $0.20 range is a good buy.

2011-05-10

Comment

XOP-X

0.570

Raised $130 million last year. Will be drilling 5 or 6 combination exploration/appraisal wells in UK North Sea before year end. Also looking at deals offshore west Africa and Brazil. Good team. High risk situation but there is downside support.

2011-05-10

Comment

42.550

Had a few problems with the Horizon’s upgrader and environmental issues. Likes the story. If he is right and there is a cool off on the price of oil, there will probably be some weakness from here. If you are buying wait to see if it goes into the mid-$30’s. If you own, Hold.

2011-04-14

HOLD

Canadian Oil Sands

COS-T

31.530

Tar sands stories have done beautifully. If you own, stay with it.

2011-04-14

BUY on WEAKNESS

Inter Pipeline Fund

IPL.UN-T

15.660

Nice conservative play with good yields. Company has been growing their assets so as they grow their assets they have more cash flow, which they pay out to their investors. Can be some volatility.

2011-04-14

TOP PICK

86.520

(A Top Pick Feb 22/11. Up 2.85%.) India and Indonesia. Have a lot of high impact exploration. Billions of barrels of potential to be drilled up in the next 18 months.

2011-04-14

Comment

Precision Drilling

PD-T

13.670

The leading and largest of the drilling companies. Have a great and new fleet. Currently trying to pay down their debt. Next, cash flow might go towards new rigs, etc. They will never be a high dividend paying security.

2011-04-14

BUY on WEAKNESS

Pembina Pipeline Corp

PPL-T

22.660

Dividend on the record of the company has been fabulous. Paid out $179 million in 2007, $198 million in 2008, $233 million in 2009 and over $240 million in 2010. Some volatility to the stock price but any time the stock gives you an opportunity, add to your portfolio.

2011-04-14

Comment

Suncor Energy Inc

SU-T

42.110

Suncor (SU-T) or Cdn Ntrl Res (CNQ-T)? Both have tar sands and conventional oil involvement. This one also has retail distribution plus some international assets. Refining and marketing have not been very good until now. Likes CNQ mix of assets better but this one would be better for the more conservative investor. CNQ would be for the investor looking for growth. (See comments under CNQ))

2011-04-14

Comment

0.020

Oil. Tunisia had very little production so it’s not an issue but Libya was producing about 1.8 million and exporting about 1.6 million barrels of light crude. Europe refineries were configured to handle that light crude. Losing that required Saudi and others to create product that would be applicable to those refineries. Given the shortage people were prepared to pay a premium. What’s next? Yemen and Syria each export a couple hundred thousand barrels a day. What happens if something happens to Saudi and that’s what the market is starting to price in. If it all settles down, we’ll be back to the $70-$80 oil but it will take a long time.

2011-04-14

Comment

0.020

Natural Gas. Bullish. In Oct/Nov at $3.20 of the NYMX contract he felt it was way under the value that was needed economically. Since then he has seen the US production is beginning to slow down. Seeing conventional going down and shale production, that was ramped up massively in 2010, is beginning to peak. When we get into the air conditioning season, he thinks the price moves up.

2011-04-14

TOP PICK

2.560

(A Top Pick Feb 22/11. Up 13.78%.) Still likes. Continued success with the drill bit. Mix is moving more and more towards liquids, which is a higher value product. Concentrated land spread and low costs.

2011-04-14

SELL

4.800

Had assets in both onshore and offshore in Romania and offshore in the UK North Sea. Fabulous natural gas discoveries in both places. Also an oil discovery that they are doing some delineation work on now. Target is $5, close to the current price. Waiting over a year for government approval on both offshore sites. This bothers him. Sold his holdings.

2011-04-14

BUY

Galleon Energy Inc.

GO-T

3.740

Likes this one. Has a $5.50 target. Sees an NAV of $5.48. Expecting them to do 14,400 BOE’s a day this year. About 34% of oil and liquids, which will be cash flowing them $122 million. Debt about $136 million. Just over 1:1 debt to cash flow ratio. Could see volumes growing up to 15,000 BOE’s a day by year-end.

2011-04-14

BUY

6.000

Great company. Drilled 11 wells in the first quarter and production has moved up to 11,000 BOE’s a day from 9,000 a year ago. Moving into more liquids rich. 20% oil and liquids in 2009 and will move this to 30% by year-end. $9.25 target. Any time you see any weakness, you Buy and put away.

2011-04-14

SELL

8.630

Been bearish on this one for a long time. Have done a good job in Albania developing the resource but have had enthusiastic and high expectations on how well they are going to do. Way behind on their numbers. His target is $6.25.

2011-04-14

SELL

6.890

In Colombia, Peru, Brazil and Argentina. Big asset that is producing for them now is the oil asset in Colombia. Sees a $5 hard value but the market is paying over $3 for the exploration potential and recently they’ve announced a number of D&A (Dry and Abandoned) If it dropped a couple of bucks he would take a more constructive view.

2011-04-14

BUY on WEAKNESS

Trinidad Drilling Ltd

TDG-T

9.390

All the drillers have done very well. Part of it is the horizontal drilling in the Bakken, Monte, Cardium or Encana plays. Lots of activity going on internationally too. Service industries are ones you want to own in your portfolio. Very well run company.

2011-04-14

DON'T BUY

0.430

Put out a press release based on Niko Resources (NKO-T) drilling in Kurdistan. They are at 3,420 meters and are going to 4,200, which will take a couple more months to get there. Have already had about 200 meters of pay, which is pretty good and are now going to the deeper zones. Upside could be billions of barrels. He prefers to own the play through Niko, which gives him a much wider scope of global areas. Too much risk. (See Top Picks)

2011-04-14

PAST TOP PICK

0.510

(A Top Pick Feb 22/11. Up 2%.) In the process of drilling an important well, Sarqala in the Kurdistan region of Iraq. Should get to the total depth in about 2 weeks. Recently raised $40 million so the balance sheet has got firepower for the drilling. This will be followed by other wells. Have 4 high impact plays. Higher risk but rewards are worth it.

2011-04-14

BUY on WEAKNESS

Ithaca Energy Inc.

IAE-T

2.460

UK has recently raised taxes and the stock got hit. Has some very good plays in the North Sea and their funding is in good shape. If you own, stay with it and Buy on weakness.

2011-04-14

BUY

0.210

Likes this one a lot. Was much higher a year ago when they were drilling the Colombo play. Since then they have drilled one more high impact well that turned out dry and that is when the stock dropped. They will be drilling another high impact well in the 4th quarter, which is close to El Morocco and has a higher probability of success. Probably $0.25 of hard value (NAV) in their current production they are doing now. You’ll have to be patient. You need a 3 to 4 year time horizon.

2011-04-14

BUY on WEAKNESS

Cenovus Energy

CVE-T

36.070

Stocks done really, really well. If you own, stay with it. New buyers should wait for a bit of weakness.

2011-04-14

Comment

Forent Energy

FEN-X

0.200

Have assets in western Canada that are heavy oil. Doing 300-400 BOE’s a day. Very small company. Will continue to try and grow the heavy oil. What is exciting is that they have a very large land spread in Nova Scotia that has potential for shale natural gas. This is their home run potential. He is waiting to see more activity. Risky.

2011-04-14

TOP PICK

Orion Oil & Gas

OIP-T (Dead)

0.970

Western Canada with 2 main areas. One is the Cabob area where they are doing liquids rich natural gas and are also doing oil in Rugwater. (?) About 52% oils and liquids. Has $1.60 target. Bank debt is very low relative to their line of credit. Looking for a new 3rd core area. Doing about 6,000 BOE’s a day and cash flowing about 80. A company that you let grow by finding new projects.

2011-04-14

BUY on WEAKNESS

47.710

Oil prices have been very positive for them and their balance sheet is improving. Cash flow is very strong. This is one you want to own for the long term. Will potentially go over the 2008 highs in the next year or two.

2011-02-22

TOP PICK

84.180

(A Top Pick Oct 20/09. Down 7.67%.) Big success in India and BP is farming in on their partner Reliance Industries. Also have a massive land spread in Indonesia with high impact drilling, big boy territory. Cash that is coming ion from their success in India is being used with their technology. $150 target.

2011-02-22

Comment

0.020

Middle East. These countries need the revenues, such as tourism. Getting a decision on how governments will go on, on a going forward basis, needs to be done fairly quickly. The problem is that 50% of the population in these countries is under 25 years of age and most are unemployed. This is what caused them to go to the streets. Governments were subsidizing the staples such as food and energy. Once they removed the subsidies or raised prices, you had cost pressures at the same time as a very bleak job picture. Thinks there will be a positive resolution and there will be a job market again. There has been no problem in the area where oil is being produced.

2011-02-22

TOP PICK

2.260

(A Top Pick Oct 20/09. Up 36.42%.) Moving from just being a natural gas producer and will be 30% oils and liquids by the end of 2011. Operating costs are one of the lowest. Land spread is in the hottest area where concentration by the big boys will happen. Looking for $4, maybe $5 in 18 months.

2011-02-22

WATCH

4.230

Starting to drill Grian gas well. Also working on Cladhan where they will do 3 horizontal legs. 2 are into the reserves (where they had got 100 million barrels of reserve for 3P) to see if there is more. 3rd will be going into the Fan (?) system, which will potentially add 50 million barrels. Own 30% of the play. His $5 target is not far away and he would like to see a massive increase of reserves in Cladhan as well as government approvals of North Sea projects. Sold his holdings.

2011-02-22

HOLD

6.370

Has been very successful in the Cardium play recently. 12-month target of $9.25. Sees them doing 10,000 BOEs plus next year. Cash flowing $1.60 so a reasonably cheap number. Balance sheet is in good shape. 20% liquid in 2009 but should be 30% by the end of the year which should give 50% of revenues for oil and liquids.

2011-02-22

SELL

9.230

Located in Albania, which is having disruptions between political parties. Very expensive on a flowing BOE basis. A massive amount of reserves there. Should have been doing 20,000 BOEs a day now so stock is over fair value.

2011-02-22

BUY on WEAKNESS

1.530

Waiting to see how the environmental rules will be resolved and the land tenure access. Won’t be any activity for the next quarter or two. There is an economic advantage to go ahead with this. We know there is gas there and that Talisman (TLM-T), the operator, is supportive of the project. Stock is cheap but it may drift for the next couple of months. Potentially worth $2 to $3 in 2012.

2011-02-22

PAST TOP PICK

8.680

(A Top Pick Oct 20/09. Up 70.9%.)

2011-02-22

Comment

0.530

Own 40% of an elephant project in Kurdistan with potential of hundreds of millions to billions of barrels. Multi-zoned in virgin territory. Partnered with Niko Resources (NKO-T) (See Top Picks). Very speculative. Very expensive wells and take way longer than you think. Still no agreement between Baghdad and Kurds on royalties, etc.

2011-02-22

TOP PICK

0.500

Kurdistan. Had a well with massive pressure problems that cost over $100 million. Now in the process of drilling 2 wells that are higher up. Talisman (TLM-T) is drilling just to the north of the Kootinan(?) and will bring the bigger rig down to drill. If any of these plays come in, he can see $3-$5 NAV being created. Not enough money to complete their program but are in the process of raising it.

2011-02-22

BUY on WEAKNESS

0.240

Egyptian oil producer. Doing about 1,375 BOEs a day and they fraced 6 wells that they’ll be bringing on production, so he sees them doing 1800-1900 BOEs a day.

2011-02-22

HOLD

Canadian Oil Sands

COS-T

33.320

Getting back near its highs. If you have 2 to 3 years, definitely hold it and wait for weakness to buy more, otherwise there is not much more upside.

2009-10-20

HOLD

Husky Energy

HSE-T

32.770

Has not responded, but has been a descent return. But will stay 2 or 3 dollars either side until we see a sustainable recovery in the economy and we see something happen in Nat Gas. This is a nice way to get into the patch for the conservative investor. Reasonable dividend 3.6%. Not likely to be taken over.

2009-10-20

TOP PICK

90.560

There are a number of things they are going to drill on the upside. The big upside is that they are the operator of the play in Kurdistan. There will be a lot of cash flow coming out of India that they can then go and drill 7 or 8 high impact plays. If there is any success, then this stock goes higher.

2009-10-20

BUY

Paramount Resources

POU-T

14.800

Fabulous run. Part of reason is (1) the gas price recovery, (2) the balance sheet is very strong and (3) they own a large slug of land in North Dakota where some of the initial well information is expected very shortly, which will have a lot of upside potential.

2009-10-20

BUY on WEAKNESS

Suncor Energy Inc

SU-T

39.870

Well managed. You may see stock under $30 if you are pessimistic on oil.

2009-10-20

BUY

Talisman Energy

TLM-T

19.700

Has liked this company all along. Management team does a fabulous job, great assets globally. Don’t chase it here.

2009-10-20

HOLD

UTS Energy

UTS-T (Dead)

2.240

Could be taken over any day. Management wants to get a fair price for the company. We know the asset is there.

2009-10-20

N/A

0.020

Thinks the US$ will go lower so commodities will go up. But there will be a rally if there is more trouble in the middle east or the economy rebounds in the US. If we have a very cold winter we may have some increase in Nat Gas prices, otherwise a retreat.

2009-10-20

Comment

0.020

Nat Gas: If you have a normal winter we will still have excess capacity at the end of it.

2009-10-20

PAST TOP PICK

1.620

(Top Pick Nov 14/08, Up %24.6) Would be a buyer here. Like the company. They have an oil business to grow while Nat Gas is suffering.

2009-10-20

TOP PICK

1.620

Has a very dominant core in west Alberta. There is vertical as well as horizontal potential. They’ve started going after the horizontal natural gas. Just did a number of acquisitions to try to get control of that area. By next year they should be doing about 8,000 bue’s a day. They estimate $.35 in cash flow.

2009-10-20

WAIT

1.580

Nice run from the lows. This is a company that has two nice discoveries – UK and Romania.. Should have production Q1 2012. Could be a $5-6 stock in 2012. Could take profits at these levels. Buy below $1.25

2009-10-20

DON'T BUY

Penn West Petroleum

PWT-T

17.500

The trust is over soon. The company is gearing up for post-tax-protection. These companies are all in a transition phase and this is a risk. It’s going from an income investor to an equity investor. Many of these companies will have to cut back or eliminate distributions.

2009-10-20

PAST TOP PICK

4.750

(Top Pick Nov 14/08, Down 25%) Because of debt load they have not done as expected.

2009-10-20

SELL

4.970

Production numbers have not come on as quickly as expected. Production profile is down, not up, which is what you want to see. It is trading at an expensive price. Market s looking at reserves in the ground and is doing horizontal drilling. You want to take some profits.

2009-10-20

BUY on WEAKNESS

2.680

52 week high today. Still in the pilot stage. Will be another year to get into development. If you own it, stay with it, no urgency to buy it. If there is a correction, then load up on it. Fabulous buy under $2

2009-10-20

TOP PICK

5.120

They are fully valued today. Biggest upside is in Peru. They are going to drill next year in Q2/Q3 next year. It is light and medium gravity oil. If they have any success we would be looking at a double-digit target.

2009-10-20

DON'T BUY

0.670

Because of aggressive cash burns has raised a lot of equity and he is not keen on owning a company that does this.

2009-10-20

PAST TOP PICK

1.760

(Top Pick Nov 14/08, Up %155) Drill well right now. Looking to find 500 Million bpd. There has been a lack of news recently. Buy on weakness below $1.50. A risky play for some.

2009-10-20

BUY

Canadian Overseas Petroleum

0.280

Focused in Egypt. Potentially exploration upside. Currently raising money and that is holding the stock back. As they take operatorships in Egypt that they can run themselves, we will all be happy investors.

2009-10-20

WAIT

XOP-X

0.650

Had a good run. He is going after some of the assets that were in Oil Exco. In the process of raising money. Until we see the format of the financing, wait before being a buyer. Will play out I the next few months.

2009-10-20

DON'T BUY

Compton Petroleum

CMT-T

1.110

A couple of problems. 1) In the gas business and 2) have a very high debt load. New management is focusing on cutting costs. Speculative. Consider selling for tax losses.

2009-08-21

BUY on WEAKNESS