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To: ms.smartest.person who wrote (415)	8/31/2005 7:17:45 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

David Pescod's Late Edition August 31, 2005 CANDAX ENERGY (T-CAX) $0.64 -0.06 We wondered over the last few days, if John Clarke wasn’t muttering “now what was I thinking?” The former analyst with Octagon Capital who was ranked the countries top oil and gas analyst for the last year had decided to forego the big paychecks, the ability to travel the world looking at the good oil plays and picking the odd stock, and instead get into the field of actually managing an oil and gas company. He is now experiencing first hand the ugliness that can come if by chance your stock should ever go down. And down it has gone, with many people who awhile ago thought they were lucky to get a chunk of an 80 cent private placement in Candax, finding themselves quickly underwater, including us. Part of that can be explained by the weird oil market we’re in, where oil has been $60 and going up, while oil and gas stocks have been acting as if it was $45 and going down. A new issue coming at a time like this faces its peril. If we were going to take a pot shot at Candax, we would have to give to many other junior mining companies’ heck for printing so many shares. We have to point out that Candax does have 130 million shares outstanding, which is a lot. When we caught up with Clarke today, he said the whole experience has been very, very chastening. “Very sobering” he says and you can tell that he is more than a little shook up from the comments he’s received and nasty emails, etc. Once again, a reminder that you are only as good as your last stock quotes. Although, for those who were lucky enough to not get in on the $0.80 placements, maybe it’s time to start paying attention to this story though and see when it bottoms, because sometime in the first quarter of next year (hopefully sooner Clarke says depending on ability to sign up rigs) they will be drilling their Chaal Permit in Tunisia. And it’s a big one. The potential target is 1 TCF and it’s the size that’s going to create some excitement. Should it hit, Clarke tells us that it’s hard to give it an asset value because of the lack of solid prices in Tunisia, but they could come up with a range. We quoted that the range is a lot higher than current prices….should it hit. Candax Energy www.candax.com To see their corporation presentation, just e-mail Sandra at sandra_wicks@canaccord.com Remember Clive Stockdale’s stock pick of Ultra Petroleum back at $1.00 a share? After stock splits and currency swaps, it is now over $100 a share. His current high risk/high reward play is TG World Energy. CONNACHER OIL & GAS (T-CLL) $2.25 n/c Two very interesting articles in yesterday’s Globe and Mail on page B-2. Deborah Yedlin’s article was titled, “You think natural gas is high now? Just wait”. In our opinion, the other article by Eric Reguly is a must read for anyone who owns stock in some of the oil sands plays. The article is basically on the oil sands and how some bean counters at the SEC might be changing regulations and as a rule goes, “it’s not a bean until the bean counters say it’s a bean.” The implication is that current rules for oil reserves are highly restrictive and in essence, he writes, “The SEC says an oil sands reserve can only be booked as proven and commercially available if it comes with the infrastructure to extract the gooey oil.” He writes that “many interest groups are lobbying the SEC to relax the reporting requirements. If it does, oil sands investors will be beaming like babies with a new rattle.” He continues, “Deer Creek may be just the start of a takeover frenzy triggered by the global hunt for longlife oil reserves.” The takeover of Deer Creek started all the hyperexcitement with oil sands, however some changes in accounting practices south of the border, could make it even more exciting. One oil sands play we’ve been involved in as you know is Connacher, and for those clients who own some shares, a reminder that we will have President Dick Gusella up for a “Beer & Pizza Gathering” on Sept 30th. See you there! Connacher Oil & Gas www.connacheroil.com If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com