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To: ms.smartest.person who wrote (2979)	1/24/2008 6:11:45 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition January 23, 2008 OILEXCO INC. (T-OIL) $11.60 +0.45 TUSK ENERGY (T-TSK) $1.42 n/c LOON ENERGY (V-LEY) $0.74 n/c The fellow we refer to as our “Mystery Mining Man” who has become very much an oil and gas guy over the coming years, tells us that based on yesterday’s numbers, we’ve hit the bottom. Or almost the bottom. He looks at one technical indicator for reassurance in a market that has been brutal and that’s the number of stocks hitting new lows versus stocks hitting new highs. Yesterday, we hit that magical time when not a single stock hit new 52-week highs on the TSE, but almost 300 hit new lows. Ugly. And a sign that things are oversold? But at a time like this, if you are looking for someone who has the calmest demeanor out there when the rest of the world might be falling apart, you go to Alex Squires of Brant Securities for a little hand holding. “Yes, we’ve hit the bottom” he suggests (at least in the oil and gas sector and he is more than a little calm about the natural gas sector) which has seen stocks not just beaten up, but brutalized (and yes he points to Suncor as yet another one brutalized as well). He points to the natural gas sector where it’s not just weather that always makes or breaks prices, but he points to the LNG markets and what’s going on in Japan where suddenly prices have (in the short term at least) gone much higher as some facilities have been shut down. He also points to the take over and amalgamation game and he wouldn’t be surprised to see that continue big-time as there are definitely a lot of companies that could merge and cut costs dramatically and make a positive difference. As far as picking commodity prices for down the road he could see oil at $80 a barrel near year-end, but at the same time he suggests we could also easily see $110.00 to $115.00 a barrel, which would make for much better times. As far as three stocks he would be looking at right now, not much has changed on his top two list as Oilexco continues to be one of his top stories and he looks for big increases in production by year-end to make a difference there. On a day like this, he gives this a target of at least $20.00. In the gas sector, he’s been a fan of Tusk Energy and just points out how beaten up its stock got and suggests that they could do as much as $0.42 a share in cash flow this year and they have some fairly interesting drilling projects that could add to that. He would be disappointed if they didn’t see $2.00 to $2.50 a year down the road. As another junior to look at, he suggests Loon Energy. As far as the oil and gas business in general, he figures drilling is going to pick up in the second half and a new royalty scheme in Alberta is going to be helpful. He points to the much better royalty scheme in Saskatchewan and suggests that sooner or later, the Alberta Government is going to have to get real. Thanks for the hand-holding Alex! We are also believers that the worst may be just about over! SUNCOR ENERGY INC. (T-SU) $85.99 -2.64 It’s not just names like Connacher, Oilexco, Corridor and the like that are getting clobbered on oil and gas markets these days, take a look at Suncor Energy. The big oil producers in Fort McMurray aren’t our type of specialty (much too blue-chip for us), but take a look at what Suncor’s stock has done in the last few weeks as obviously, people are grabbing any kind of liquidity in a market that to us, simply makes no sense. But cash is king and Suncor and blue-chips like it, can offer that. Today they announce record earnings, but also in the report is a sign of the times in that operating costs have gone from $20 to roughly $27 a barrel. Meanwhile, if you are looking for an in-depth report on the company, Raymond James has just come up with that in-depth look and their target on the company is $125. That’s a huge gain, should they achieve that, but we are in a market of “chicken little’s.” 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.