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To: ms.smartest.person who wrote (1174)	6/14/2006 11:10:00 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition June 14, 2006 GALLEON ENERGY (T-GO.A) $27.42 +0.42 CAPITOL ENERGY (V-CPX) $ 4.50 -0.10 MISSION OIL & GAS (T-MSO) $12.00 n/c It’s been CAPP time in Calgary over the last few days. The big shindig where the oil and gas producers get together with analysts and investors around from around the world and display their wares and answer the hard questions. The suggestions had been made that because of the interest in oil sands, there would be a very large contingent of international type investors that might even make up to half their crowd—and record attendance numbers were expected. We didn’t make it down to see first hand, but for those that did show up suggested that yes, there was good attendance, but no more so than in past years and while those we talked to did meet with international investors as to how many showed, is still open to debate. “With the recent correction in the resource sector as a whole, it was the one thing that overhung the whole conference,” Genuity Capital’s analyst Jim Welykochy tells us. He also echoed the concern of several we heard that natural gas prices are a big worry. Welykochy suggests that “you have the fundamental problem with natural gas— supplies remain high, but you’ve also just gone through a time when just about everyone seemed to be getting into oil and gas whether they understood it or not and now that gas is a tad iffy, maybe there is a bit of a rush to the exits.” (We should note that not just natural gas was the cause of concern to some—with low gas prices, Fred Kozak of Haywood Securities also mentioned the concern for coal bed methane producers.) When we ask Welykochy if there are any stories that stood out to him, and could he please come up with three, he suggested that Galleon Energy put on quite an interesting show and suggested that based on their presentation, there is a chance that the company could yet add up to a billion dollars in market cap down the road due to the huge land holdings they hold that are currently about a million acres gross. Another story that stood out and one of Welykochy’s favorites is Capitol Energy, the little junior that discovered the Dixonville Field, one of the bigger oil discoveries made in Alberta in the last few decades. They are going to be working on a water flood project to see if it can’t significantly boost production. And if it does… Actually, you might want to see their CAPP presentation first hand, just e-mail Sandra. A third play of interest to Welykochy was Mission Oil & Gas, because of their play in southeastern Saskatchewan that could become significant. SOUTHWESTERN RESOURCES (T-SWG) $8.71 +0.40 It’s interesting to watch how some market analysts blow hot and then cold, then hot and then, well, whatever. Usually it depends on how hot your sector is and how well your last couple of picks have worked out. John Embry, who always pulls in a good audience when he’s on ROB-TV, makes an appearance yesterday and what is his number one stock pick….Southwestern Resources. We’ve mentioned this stock more than a few times over the last while, but look at the chart to your left. That shows you what it and many other gold stocks have gone through in the recent correction. For those who might have sold some though at better prices, is it time to get back in? For those who want a little more on Embry’s stocks, he recently pinned an article in Investors Digest on why he likes gold and Southwestern Resources. For a copy, contact Sandra at sandra_wicks@canaccord.com. We’ve played it before and we think we will play it again, given its current half price sale now on. When we touch base with Meghan Brown who does the PR for SWG, she suggests they should have their prefeasibility study on Boka by year end and that could be an absolutely enormous project and in the meantime, they will be spinning out their zinc assets in an IPO in the next few weeks. Probably not the best time to be doing that, but still it will give the company some extra cash. Canaccord analyst Wendell Zerb has a target of $19.40. CONNACHER OIL & GAS (T-CLL) $3.44 +0.22 Talk about ups and downs! Connacher Oil and Gas was one of those junior oils that for much of the last 18 months had a huge run—and then reality has hit a bit as delays in getting their EUB decision and a suddenly worrisome commodity price picture, brought the company back to reality. We had hoped to be doing an interview with company President Dick Gusella, but he suggests at this point, nothing is timely and maybe the best way for anyone to take a good look at the company right now, would be to see first hand the presentation they just made at CAPP, the big hoedown for all the junior oil and gas companies. To see their presentation, simply e-mail Sandra at sandra_wicks@canaccord.com and she will send it to you. Disclosure: Mission Oil and Gas : Canaccord Capital covers this stock and has a Hold rating on it. (Hold: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.) Southwestern 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 participated in a financing for Mission Oil and Gas. If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com