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To: ms.smartest.person who wrote (1063)	5/6/2006 8:12:56 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

LOTTERY TICKET QUOTES finance.yahoo.com

To: ms.smartest.person who wrote (1063)	5/8/2006 6:36:33 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition May 8, 2006 OILEXCO INC (T-OIL) $5.85 +0.82 STERLING RESOURCES (V-SLG) $2.94 +0.54 After three high profile and disappointing misses on their exploration program, Oilexco has better news today. While the deeper and bigger target on their Disraeli prospect came up dry, their shallower Eocene Tay Sandstone target came up with a 90 foot oil column and needless to say that’s promising! We are a long way away from ideas as to how big this target could be, as far as reserves or when cash flow could be achieved, but needless to say….90 feet of pay in this area of the world, The North Sea, is very promising. A big move by both Oilexco (considering shares out) and Sterling Resources. BACTECH MINING (V-BM) $0.445 +0.055 It is usually a dangerous adventure when an analyst in one sphere decides to start following a story outside of his expertise. Andy Gustajtis, the oil and gas analyst at Dominick & Dominick, admits that one story that he finds absolutely intriguing is BacTech Mining Corporation. “Notice the significant new change in personnel”, he suggests, as a major technical guy from Noranda has joined the company as Chairman. And while this is a mining story and not oil & gas, he points out that many “stranded” ore bodies around the world that could be aided by a new technology and making their deposits economic. He points to the new technology, which is called bacterialoxidation technology or “bugs” to help in retrieving the metals from the ore body. While this company was originally designed to recover gold from ore, today they announce that given the high prices for copper it was obvious that they should be examining possibilities in that sphere as well. Obviously some people are paying attention, as there is big volume in the market today. But, back to Gustajtis’s sphere of influence oil & gas—given all the changes in prices of stocks, Andy….what are your three favorite stories as of today? In no particular order he mentions that you have to be looking at Connacher Oil & Gas after the buy out of Blackrock today, he says, as there simply not too many Connacher like plays out there that can be had for billion dollars or less. Corridor remains on his list as he still has hopes for double digits down the road when they get to drilling the Dawson Settlement play in New Brunswick later this year and for a stock that is trading at a big discount to net asset value, he suggests Rally Energy for their assets in Egypt. BLACKROCK VENTURES (T-BVI) $23.86 +4.98 INCO LTD (T-N) $74.70 +9.32 It’s been hard not to bump into the theory, that you have been hearing over the last year or so with the increase in oil prices, that all the major fields in the world, most of which were discovered decades ago, are starting to deplete. It’s also getting harder and more expensive to find the smaller oil fields and there is also more than a few books being written these days on just when does oil production peak, and whether oil goes to $100 a barrel, $200 a barrel or pick your own figure. Even given some lofty oil and gas prices these days, maybe it is still cheaper to buy another oil company, then it is to spend all that money in trying to find new oil fields and today you see an acknowledgment that maybe that is the way to go, as big Shell Canada oil company buys Blackrock Ventures in a massive $2.4 billion deal. Maybe the same argument can be used in the metal business, only slightly different. There are probably a lot more big metals discoveries to be made around the world. The difference is that in the oil and gas business when you find something, you can get some production and cash flow really quickly. In the mining business these days, though, with concerns about environmental issues, home ownership issues (whether you are even wanted in the community given the ugly and depression track record of some of the miners) there are areas in the world that they simply don’t want miners around. So, maybe you can use the same argument that it is cheaper to buy proven producers then it is to go and explore and spend the 10 years it takes these days to get major mines up and running….plus the huge cost! Today, mega biggie mining outfit Teck Cominco makes a bid for biggie Inco in a $17.8 billion deal. A note of interest, though, is that both of these companies are based in Canada and there may well be a good reason for that……. In Venezuela today, Chavez announces that they intend to increase the rate of income tax on their heavy oil projects from 34% to 50% and move the royalty rate from 16% to 33.3%. While we are not a whiz at math, it’s becoming obvious that there is suddenly not as much money to be made in Venezuela….and a lot more risk! Disclosures: Blackrock Ventures: Canaccord Capital covers this stock and has a Hold rating on it. (Hold: The stock is expected to generate riskadjusted returns of 0-10% during the next 12 months.) Oilexco & Connacher Oil & Gas: Canaccord Capital covers these stocks and has a Buy rating on them. (Buy: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.) Sterling Resources: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.) Canaccord has recently led a financing for Oilexco and Sterling Resources Canaccord has recently participated in a financing for Corridor Resources If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com