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To: ms.smartest.person who wrote (2845)	10/26/2007 12:09:20 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition October 16, 2007 OILEXCO INC. (T-OIL) $17.50 -$0.39 PETROBANK ENERGY (T-PBG) $44.90 -$0.05 ITHACA ENERGY (V-IAE) $3.55 -$0.04 GULF SHORES RES. (V-GUL) $0.26 +$0.03 That was the smiling, happy face of Peter Hodson you saw yesterday on the Business News Network and you can understand why he’s got to be a happy guy. The Sprott Asset Management Fund that he helped initiate roughly two years ago, saw a 44% return over the last 12 months, which puts him (by far) into some of the top performing funds you can find anywhere in North America. He’s been in resources, a sector that has definitely had a big owie over the last couple of months. I suspect one stock that he commentated on amongst many on the BNN interview (go to www.bnn.ca, watch past videos, Monday, Market Call 12:30 AM ET to take in the show and particularly the Oilexco comment at about 33 minutes into the interview) and in the interview on Oilexco you heard him give a target of roughly $30.00 for Oilexco. In the last few days, we mentioned how Schachter is upping his potential targets for Oilexco. The gossip in the marketplace surrounds just how big the Huntington discovery might be. But back to Hodson who tells us last night that despite the big run up in the price on Oilexco, he suggests “the stock remains quite cheap” and suggests that “Huntington isn’t the only play people should be talking about” and suggests that as it approaches a $4 billion market cap, ownership of the company is shifting into a different type of investor. That type of investor he suggests, is looking at the right circumstances lining up, which would mean the stock is trading at only as little as 1.8 times cash flow. In our conversation, he reiterates a $30 target. On the Business News Network show, he picked these three as his favorites: 1) Points International (PTS) 2) Hanfeng Evergreen (HF) and 3) Seabridge Gold (SG). When we asked him to pick three natural resource stocks, he goes with Oilexco and Petrobank Energy and in the gold sector where he is a big bull and wouldn’t be surprised to see gold go much higher, he goes with Yamana Gold (YRI). We note that in the gold sector according to the interview, he prefers some of the bigger cap stocks. *** * * * * * * * * * * * * * * * * * * * * But back to the North Sea again, where we’ve seen this huge success story with Oilexco and also we note Ithaca Energy hitting three for three and over the next while and we expect some new reserve numbers out of that company because of success with the drill bit and with worries about Alberta and the Royalty Review, the North Sea certainly seems to be a good place to be looking. Amongst the other success stories, we should also mention the name Antrim Energy (AEN). Which gets us to the question of just how many dusters has Oilexco had in the North Sea? It’s had quite a few, but in exploration anywhere, the rule of thumb is chances of success are about one in ten. But if you get the one success and it’s a big one—one can become a happy speculator. Which gets us to a story that currently isn’t that happy at all and that’s the two little guys involved in North Sea exploration—Gulf Shores and International Frontier Resources (V-IFR). So far they are zero for two. Of course while punters are so happy in praising Oilexco for their success, punters are equally down on management of the two juniors. But with three additional high profile/high risk/high reward plays lined up over the next quarter or so, all GUL and IFR needs to restore instant credibility is one success. And their next one, the Block 12 play is definitely high risk and definitely high reward. They are hoping for 180 million bbls recoverable. So how does a punter play it? Well, we have to admit that we’ve been in both of these for some time and by not selling at the right times it hasn’t been nearly as much fun as it could have been. But when they drill, with so many people keying on the North Sea, will these juniors ride higher as speculators might take a punt on whether they are successful or not? And could little GUL pop from say, $0.22 or $0.25 to $0.40 or $0.50? Or if they hit, how high could they go? Some suggest as high as $3.00. The spud date is currently expected to be on the last week of October or very early November for both Gulf Shores Resources and International Frontier Resources. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com**