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Pastimes : Crazy Fools LightHouse -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1798)	11/22/2006 7:37:13 PM
From: ms.smartest.person	Read Replies (3) \| Respond to of 3198

&#8362 David Pescod's Late Edition November 22, 2006 CANORO RESOURCES (V-CNS) $1.61 -0.09 Find a big high risk/high reward play, get in early and cheap and then make sure you sell some on the way up as it attracts the speculators attention. No big surprise to that strategy, but once again, we find one of our favorite oil and gas guys appealing to our sense of greed. It was back on November 10th that we did our look at what we thought were some of the big high risk/high reward plays out there and we were hoping to follow them up from time to time. Unfortunately, we keep finding some new plays that some of the people we think highly of, keep bringing to our attention and today, Andy Gustajtis (he of Kodiak Oil and Gas (KOG), Corridor Resources (CDH) and other big success stories) brings our attention to another play in far off India, of all places! Gustajtis likes to come up with a play way out in left field to appeal to one’s sense of greed, but here we go. In early and cheap and he suggests that Canoro Resources is the company name and the place is India. They have just spudded a play on the Amguri Block in India and Andy suggests their target could be worth to the company a net of 90 million barrels for their 65% interest. They also will be drilling shortly, the AA-ON/7 Block and the target net for Canoro is 130 million barrels. Needless to say, these kind of numbers should it be successful, could add significantly to Canoro’s value. The chart also shows you that this company has attracted attention in the past with some of the high profile plays in that neighborhood. What kind of chances of success should one give to this play? Standard exploration you are seldom more generous than one in ten, but there has been extensive seismic work done in the area, so the five-well program does have a shot. Emphasis...“has a shot”. The Canoro website gives good background information on the oil and gas business in India and they point out that where they are in the Assam Region in northeastern India, it’s been producing and refining oil area since the late 1800’s and currently they have over 40 fields in the region. They also point out to drilling success rights in the area of almost 40% and the suggestion is that while northeast India is about 1/3 the size of Alberta, has so far only done 1400 development wells compared to 130,000 in Alberta, which they point out, might leave lots for future success. PRECISION DRILLING TRUST (T-PD.UN) $28.96 +0.01 What a difference a year makes, as Canaccord analyst Andrew Bradford looks at the oil field services sector and notices a big change! A year ago, it seems you couldn’t get a rig no matter what you were willing to pay and all of a sudden these days they are becoming quite available! Bradford pointed out that last year at this time, 87% of all rigs were turning but this week only 56% of available rigs are turning. The suggestion is that rig rates might be declining in value over the next while and many of the companies that supply rigs have seen their stocks clobbered and some of the more junior entrees to the business (over the last year or so) are getting particularly hammered in an environment that is suddenly pretty tough. It’s hard to get qualified people, you are having to pay them a fortune to keep them and suddenly business isn’t as available as it used to be... COPPER: FREEPORT MCMORAN (NYSE:FCX) $61.80 +3.39 Copper, like many other commodities, has had an amazing run for much of the last five years before spending the last six months or so, correcting. But obviously the big boys seem to be thinking that we are going to see good prices for many years to come, otherwise they wouldn’t be spending billions of dollars trying to make sure they have supplies. Barrick Gold is after Nova Gold (despite the name, it’s mainly copper) and then in just the last few days, we saw Freeport McMoran make an offer for Phelps Dodge, one of the world’s biggest copper producers. Meanwhile today there are rumors that Freeport McMoran itself is maybe the subject of a takeover offer by BHP, one of the world’s biggest mining companies. When the big boys spend billions of dollars to line up copper assets, it suggests that at least they think decent copper prices are going to be here for years to come. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com