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To: ms.smartest.person who wrote (2967)	1/21/2008 11:16:55 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition January 7, 2008 CGX Energy (OYL.U) 4.32 +0.06¢ Energulf Resources Inc (ENG) 2.85 +0.82¢ International Frontier (IFR) 0.67 -0.06¢ Gulf Shores Resources (GUL) 0.175 -0.045¢ For those looking for the big high risk speculative plays in the oil and gas business the last few days have been reminders of the risk in the business and also the potential rewards. First of all CGX came out with the resource assessment from Gustavson Associates of Boulder Colorado for four prospects on the companies prospecting license offshore Guyana South America. Using probabilistic analysis Gustavson calculated a total best estimate (P50) prospective resource and the four prospects to be 2.7 billion barrels of oil. Let’s say that again 2.7 billion barrels of oil ... which is one heck of a lot of oil, and that’s with the report not even looking at CGX’s 25% interest to the Georgetown PPL, it’s 100% interest in the Corentyne Annex, or it’s 100% interest in the 11,400 square kilometer Pomeroon liscence. They actually worked out a low estimate on the 4 projects, a 1.1 billion barrels and a high estimate of 6.2 billion barrels and a best estimate of 2.7 billion barrels is of course the good news. Company President Kerry Sully says that he is hopeful to see a couple of analysts reports out in the next 2-3 weeks which will give speculators an even better look at the company. Once again this is the good news, the bad news of course is they won’t be drilling until 2009 and Sully reminds us that until they open their data room they don’t know who their drilling partners will be. Unfortunately the real world is also contained in the news release and that is its’ probability of success. They give it 61% probability of no oil discoveries being made which of course is the bad news. And a reminder of the potential bad news was just released today officially as Gulf Shore and International Frontier abandoned their Ridgewood prospects in the North Sea off the United Kingdom. The drilling was way ahead of schedule and abandoning it tells us that their hopes of discovering 150 million barrels there have just about disappeared. GUL and IFR don’t know yet when they will be drilling with PetroCanada on the Maria Project and in the meantime International Frontier will be drilling what Pat Boswell predicts could be one of the most significant wells in Canada, it’s Dahadinni well in the Northwest Territories. If you are looking for little companies with big plays, little Energulf only has about 40 million shares outstanding ( to the CGX’s 140 million shares outstanding, Gulf Shore’s 100 million shares outstanding) and it will be drilling the Kunene Project offshore Namibia sometime between January 15th and January 30th. This is a half a billion to a billion barrel target. Here’s the exciting part (do the math on it they’ve discovered a billion barrels and they have 10% of it and only 40 million shares outstanding). Following Energulf they have the enormous Hartman Target which some people suggest could have the potential of an absolutely mind boggling 5 billion barrels. (But once again folks this is exploration so use a 1 in 10 chance). It’s surprising that there are no plans yet as to when they will be drilling the Hartman but we suspect if and when they do drill this, there is going to be many people paying attention to this high-profile play. Tyler Resources TYS 1.56 +0.56¢ Oilexcco OIL 13.05 -0.60¢ Usually when you step outside your field of expertise, sometimes you find yourself in an embarrasing position. Witness Joseph Shacter who a lot of people respect for his expertise in the oil and gas game, and even in a game he feels he might know there are plenty of unpleasant surprises. But Shacter is well-known for recommending a mining play Tyler Resources on Business News Network form time to time. For awhile there he was looking as if he didn’t walk on water ... and then today the Chinese company the Jinchuan Group has decided to acquire Tyler Resources for $1.60 per share. Needless to say that creates a little excitement in the market as Tyler trades more than 40 million shares. So we asked Shacter today if he could only buy one stock in the coming while what would it be? He responds “Well I am currently rolling over much of my Tyler position and the biggest position I am picking up is more OilExco.” He spent some time getting updated with some of the OilExco officials over the last few days and he is feeling ever more comfortable that down the road OilExco’s stock is now trading at what they could be generating in cashflow three years down the road. He suggests they are in a beautiful position where they have one rig devoted to bringing up future production and a second rig that they are using to swing for the fences for ever-more discoveries in the high-risk area of the North Sea. Needless to say having followed the OilExco story for awhile we hope Shacter is as right with OilExco as Tyler resources. To receive the Late Edition and be on our daily circulation simply e-mail Debbie at Debbie_lewis@canaccord.com and give your address, phone number and e-mail and we’ll have you on the list tonight.