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To: ms.smartest.person who wrote (2832)	10/7/2007 9:13:19 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition October 3, 2007 OILEXCO INC. (T-OIL) $15.50 -0.40 It was only a very small article in Bloomberg yesterday, but it certainly created quite a rush in the market as Oilexco did almost 4 million shares and hit ever-new highs on a huge percentage day increase. It’s a little softer today, but we understand a lot of people missed the little article and for those that missed it a couple of paragraphs in the article went something like this, “The Huntington discovery, could be the largest discovery in the North Sea in the last five to six years.” Oilexco’s chief executive officer Arthur Millholland said today in an interview in London, “they may be right”! Wow! For those who have followed developments in the North Sea, that could be impressive because the discovery he is obviously/probably eluding to, is the Buzzard discovery made roughly six years ago, discovered by Nexen and currently estimated to have around three quarters of a billion barrels. It’s also assumed that peak Buzzard production could hit as much as 200,000 barrels a day. How big the Huntington discovery is for Oilexco is going to take some time to work out and according to the Bloomberg article, “two accumulations in the Huntington were drilled in June”. Bloomberg reports that “tests showed a combined flow of 10,200 barrels a day” and further appraisal drilling will identify the size of the reserves by the end of the year Millholland said. Production is expected to begin in 2009 at the earliest and could climb to 50,000 barrels a day. Obviously this has been a significant development and just how big Huntington is, is what got the market suddenly excited and Oilexco owns 40% of Huntington. Meanwhile, after hitting new highs yesterday, suddenly Fred Kozack’s target of $21.00 suddenly doesn’t look that far away, and remember Oilexco has almost 21 additional targets to be drilled in the coming years. PAN ORIENT ENERGY (V-POE) $6.16 -0.06 As well as Oilexco hitting new highs yesterday, Pan Orient was flirting with new highs as well. Most of the investing/speculating public hasn’t followed this story at all and the company operates mainly in India/Indonesia but it’s prime discovery is off-shore Thailand and it looks like it’s turning out to be a rather sizeable one. Very few analysts are following it except for Warren Verbonac of Octagon Capital Corp., and the other day we talked to Peter Hudson of Sprott Asset Management who gave the firm a lot of coverage when he picked it as one of his three favorites on BNN back on September 20th. When we talked to him, he suggested he wouldn’t be surprised if this story couldn’t go considerably and he wouldn’t be surprised as well to see a $10 target down the road. One thing about stories such as Oilexco and Pan Orient, they’re not in Alberta, and right now with everyone wondering what the resolution will be with the Royalty Reviews, suddenly people are realizing there are other basins in the world they might have to concentrate on. One problem with the review in Alberta is if suggestions are implemented, one agency suggests that Alberta goes from being the 11th most rewarding basin to be exploring in and could move it as low as 44 and suddenly there would be other areas of the world the speculator would have to become familiar with. Offshore Thailand obviously could become one of them. CRESCENT POINT ENERGY (T-CPG.UN) $20.75 -0.17 The chart on Crescent Point Energy shows you that it’s been having a good time the last little while and that’s because a lot of speculators are discovering the Bakken Trend in Saskatchewan. This is an area that over the years has been quite juicy for the oil and gas business as an average well, and once again we’re playing quite loose with figures here, but an average well would come in at 80 or 100 barrels, a very light sweet crude with very nice liquids associated with it and then settle out at say 50 or 80 barrels a day, and the numbers were quite magical. Now new technology has been devised and suddenly some of these Bakken wells are coming in at 2, 3 and 4 times that size with the use of the new technology. It’s only been around for about a year, so what some of these wells will ultimately flow at, is yet to be known, but the initial rates are quite significant. The chart on Crescent Point shows that lately people are catching onto this play and also they recently purchased Innova Explorations which is a big land holder on the Bakken Trend. Meanwhile, yesterday Crescent Point attracted a lot of attention as it said it was going to take its $150 million exploration program out of Alberta because of the Royalty Review and put it all into Saskatchewan. It sounds like they’re having a bit of a hissy-fit, but I wonder if it isn’t more about the success of the Bakken area more so than concerns about the Royalty Review that has them making a decision probably anyone else would’ve made anyway. Meanwhile there's a nice little junior operating in the Bakken area that we have big hopes for as well. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com