To: ms.smartest.person who wrote (1233 ) 7/11/2006 10:28:56 AM From: ms.smartest.person Read Replies (1) | Respond to of 3198 ₪ David Pescod's Late Edition July 4, 2006CORRIDOR RESOURCES (T-CDH) $5.26 +0.17 KODIAK OIL & GAS (V-KOG) $4.40 +0.08 PETROLIFERA PETROLEUM (T-PDP) $11.15 +0.15 After getting back from a nice vacation in Europe, it’s been more than a little bit depressing...it’s not just the good chunk of change that has been lost in the recent market correction, it’s interviewing and talking to all the analysts these days, many of which are expecting very little in the junior resource stocks over the rest of the summer, expecting a base-building process has to be put in. Now that’s not very exciting, but it’s a realistic look at the markets that today, trades only a fraction of the volume it did a few months ago. There is a long list of junior stocks that have dropped 50%. But we found a perfect antidote to this negativism and that’s time spent with ever-ebullient oil and gas analyst Andy Gustajtis, currently plying his trade with Dominick and Dominick. No such morose mood there and unlike other analysts that are hoping to make 10% here or 20% there, Andy is a big believer in some stories that could make some significant moves in the market...over time. When we look at his top picks, little has changed over the last while on his list, although he does talk about a “mystery stock” he’ll be updating us on sometime shortly. His favorite pick is still Corridor Resources, currently working on their McCully Project in New Brunswick and testing the Hiram Brook Sands zone and still in the process of trying to get pipelines built to take their gas down to New England. Gustajtis says, “They’ve just hit 17 successful gas wells back to back, but they are in New Brunswick and no one follows it and no one seems to believe it. If this was in Alberta, the stock would be trading at $15.00 a share.” Then of course, there’s the excitement to add to that...that’s when they drill the Dawson Settlement—the deep zone later this year. The target is enormous, but remember it has traditional exploration odds, which aren’t necessarily that good. We’ll say one in four. Actually, it’s Andy who’ll say it’s one in four. As far as other picks, he points to the work of Questar, currently being done in Colorado and what they may be finding in that area of the world. Which leads to his second pick of Kodiak Oil and Gas with over 30,000 acres in the middle of Questar’s play and if this play works out…. One story that has just amazed him with their success and he suggests there is more coming and that’s Petrolifera Petroleum. Dick Gusella’s spin-off from Connacher has had success after success drilling their projects in Argentina and he suggests they are currently up to almost 6000 barrels a day from almost nothing twelve months ago. They had raised, he pointed out, almost $25 million to get the company up and going and much of that is still in the bank as they’ve been able to pay for much of their costs out of cash flow. He suggests they should be able to cash flow $100 million next year and thinks there is another double in the stock. With everyone else morose and looking to base-build, or hide in the corner, it’s always pleasant to talk to someone who has decidedly optimistic views, although on natural gas, he’s concerned that there could be a little bit more ugliness before gas finally gets going and hopefully he says, sees $7.00 to $8.00 by Christmas. “The beaten up gas sector might be the place to be looking for bargains”, he suggests.