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To: ms.smartest.person who wrote (1852)	12/1/2006 5:42:21 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition December 1, 2006 PETROLIFERA PETROLEUM (T-PDP) $17.00 -0.10 CONNACHER OIL & GAS (T-CLL) $3.65 -0.05 The chart tells you that Petrolifera Petroleum has been one of the success stories of the past year in the oil and gas patch. It’s been the kind of story that just might prove that fairytales can come true. But every once in awhile, a fairytale has a bit of a bump and for Petrolifera, that happened this week when the reserve report announced there was a little bit less than assumed. Today we caught up with Dick Gusella the boss at Petrolifera and Connacher Oil and Gas for an update and we find him halfway through noon hour at his desk, answering his own phone and not at a fancy eatery at all. As far as the Petrolifera news Dick suggests, “reserve reports are written by an individual at a given point in time and they are paid to do this, so you have to accept the results.” He found them a little disappointing, but he suggests, “hopefully we will look back and see it as a momentary blip.” Meanwhile, oil on their operations in Argentina continue to be piped and trucked away and the company is seeing cash flow of almost $600,000 every day. Not bad for a company that was a start-up just over a year ago. Gusella suggests that Petrolifera is currently averaging about 11,550 barrels a day and has averaged 6400 barrels a day for the year. Their target for the fourth quarter of next year is 21,100 barrels and then average around 18,700 for the year, suggesting that they expect growth to continue. Gusella also points out that they have yet to drill a dry hole on this play and they expect to drill another 50 wells in Argentina over the coming year. Meanwhile, there are some other new developments with the company and he suggests they hope to be drilling their very high risk/ high reward play in Peru in the fourth quarter of next year and they are also hoping to pick up some exploration blocks in Columbia, using some of the same framework that has worked so well for them in Argentina. Today, oil and gas analyst Andy Gustajtis said if he could only buy one stock today, it would be Petrolifera. As far as Connacher, whose stock has suffered a bit as Petrolifera has stumbled (Connacher is a big shareholder of Petrolifera) they are continuing to drill their first pair of wells on their Great Divide project near Fort McMurray and he suggests that the weather has been cooperating nicely, except for those few days of minus 40. They currently have one rig turning and expect a second shortly and hope to have the 15-well pairs completed by the end of the season. There have been a few delays due to land conditions as a slough had to be filled in and of course a bit of paperwork and permitting has delayed them as well, but so far he suggests, “no significant glitches”. Four rigs will soon be going to work as well to drill 70 core holes to outline the size of just how many Pods they have and how big they might be. They still hope to finalize and firm up Pod 1 and then be able to nicely go over to Pod 2. Meanwhile, as far as their conventional oil and gas interests, they are in the process of drilling 25 wells at Marten Creek in Northwestern Alberta. I suspect most people’s eyes are continuing to watch Connacher for the answer to the question—just how many Pods might they have down the road producing 10,000 barrels a day per Pod…? Connacher is working on a new presentation that should be available Tuesday. If you would like to receive this, just e-mail us your address and we’ll make sure you get it Tuesday night. TRITON ENERGY (T-TEZ) $2.09 +0.24 On our “Big Issues” piece, back on November 10th, where we look at what we thought would be some of the high risk/high reward plays of the day, Triton Energy was mentioned because of a joint venture they have with Shell. Today the stock pops as rumors suggest they may have just finally spudded that play.