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To: ms.smartest.person who wrote (1509)	10/5/2006 6:01:37 PM
From: ms.smartest.person	Read Replies (2) \| Respond to of 3198

&#8362 David Pescod's Late Edition October 6, 2006 DELTA PETROLEUM CORP (DPTR-N) $23.46 +0.98 NATURAL GAS $6.298 +0.303 Arguably one of the countries smartest investors Eric Sprott, of Sprott Asset Management, has his biggest holdings in one oil and gas stock and I guess one should pay attention, shouldn't they? We interviewed Eric Sprott back on August 30th, when he mentioned Delta Petroleum as one of his top picks. Also, Eric Hagen of First Albany Capital came up with a very interesting background report on the company back on August 22 and if you would like to receive a copy of that report, just email Sandra Wicks at sandra_wicks@canaccord.com and she will send it off to you. But, it is the report, just put out, by John Freeman of Raymond James, that has given Delta a boost in the last couple of days. The most interesting thing about this whole story is that it is mainly a natural gas story and at a time like this, with gas prices being so pummeled, most gassy stocks have been going down a long slippery slope, Delta has fared much better. Delta, because it has so many significant plays (all expecting results in the next couple of weeks and months) is obviously appealing to people’s greed! According to Freeman’s report, he points out, “We were impressed with the sheer magnitude of the potential upside from the company’s exploratory prospects.” He also points out that “based on core analysis from some CRB wells drilled in the 1980’s, the estimate ultimate recovery (EUR) per well (in the Columbia River Basin) is in the range of 10 to 30 Bcfe. If we assume the low end of that range and apply a 90% risking factor, reserve potential from Delta’s acreage is 3.7 Tcfe (nearly 14X Delta’s current proved reserves)! Based on that analysis, the CRB would add $34 to total company NAV.” “The other potentially game changing play is the Central Utah Hingeline”, Freeman writes, and “the discovery of the 70-100 MMBoe Convenant field, in a an area previously believed to be nonproductive, opened the region to extraordinary exploration potential.” He also writes, that they “expect results on Joseph, the first of 21 prospects by the end of the year. We estimate that Joseph could contain 400 MMBoe gross and on an unrisked basis add $14 to total company NAV.” And then of course there is “the Paradox Basin which could potentially hold 280 to 560 Bcfe net reserves. The company, Freeman writes, “has reached total depth on a couple of prospects and should announce results over the next several months.” Needless to say, these are three high/risk-high/reward plays all with results over the next while and if they all hit…….we could see a very sizable company being formed. On the other hand…..if they all miss this could be one very significant “OUCH”. You can tell by the volume being done on the stock over the last while that there is more than a few people following it even despite what is going on in the natural gas pricing arena these days. We can’t send out the Freeman’s report at this time, but hopefully in a week or so we can. If you get a chance to read this report, do so! GOLDMARCA LIMITED (T-GML) $0.89 +0.07 It seems to be getting more apparent all the time that if you are looking for where the center of exploration excitement is right now, it’s probably in Ecuador. First of all, it is a much safer place to be in then some of those wild-west places in Africa that are rich in ore, but in scary locales. Today, Goldmarca comes up with some drilling results showing that they’ve got another hit of two meters of 7 ounces gold per tonne and that is super rich! It’s interesting that their previous results were low-grade over big widths, which is a bit of a reversal of today’s news. One negative on Goldmarca is the number of shares outstanding – with all those warrants, options and you name it, you could get up to 250 million shares outstanding so it has a big market cap. Wendell Zerb along with Graeme Currie had put together that great background look at Ecuador and published it in July, which was certainly timely, so we ask Zerb today for his thoughts on the developing plays. Aurelian Resources, he says, is still the main story of the day and for others in the area Corriente Resources is one of his favorite stories as well just north of Aurelian and shortly is about to spin off their gold assets. He is a believer that Corriente down the road with good copper prices and their potential mine could be a big money spinner. Goldmarca he says has to be watched because of their location and Lateegra Gold Corp for their strategic piece of ground that they own in the area. Plexmar Resources he suggests also has a very interesting option agreement on a big chunk of land in the right neighborhood. Over all, though, Aurelian is still the main player in the group and the only question is just how much gold they will find there. If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com