Toro Oil & Gas Ltd (TOO-X)

He loves it. Management is doing an exceptional job. No debt and well financed. He thinks it will be the next Raging River.

Still loves this. Just announced a financing arrangement whereby they have sold the royalty on future production from their Hamilton/Viking play. The game is absolutely still on. They have no bank debt and have a swatch of cash in the bank. Have a 2^nd half drilling program that they will execute on.

A brand-new entrant to the Street. Management has been out of the market for a couple of years. They financed themselves and recently made an acquisition of an underutilized Viking oil pool that has about 300 million barrels of oil in place. Adjacent fields have recovery factors of 20%-25%. So far 5% of the oil in place has been recovered. If they can get an additional 10% recovery, that is 30 million barrels of oil. There is huge leverage in this name. What he really likes about the asset is that the oil pool is gas driven, not water driven. There are 60 sections of land in the pool and they own 100% of it. On every section there are 2 gas injection wells. They have to pull the gas out of the oil and reinject it, so all those costs are sunk. Because of this, the exploitation of this is going to be fairly seamless and going to be self financing with not very much capital.