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To: ms.smartest.person who wrote (3000)	2/20/2008 11:49:22 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition February 11, 2008 OILEXCO INC. (T-OIL) $15.14 +2.38 We finally get the update we’ve been waiting for on Oilexco and so far it looks as if all the news we see appears to be good news...almost worth the wait. It’s looks like on the Huntington appraisal, they may have found a 452 foot oil column now being identified as the Huntington Fulmar oil accumulation. Needless to say, this is a huge intercept and they are going to be doing a lot more development work on it in the coming time. Meanwhile, another interesting story is the Mallory which is roughly four miles away from Huntington and it looks like they may have discovered oil on the same zone as Huntington which has huge implications as a potential size of this reserve. Today, Canaccord’s Kozak writes, “Impact: Positive. The results of the Huntington Fulmar and the Mallory Fulmar wells support our previous comment that Huntington is a very significant area for Oilexco. Oilexco will be drilling additional delineation wells in the Huntington area in the second half of 2008. With the Huntington and Mallory delineations of the Fulmar zone plus the Huntington Forties oil zone, there may be a slight delay in our estimated onstream date of Q4/09 for the Huntington area. However, Oilexco and partners are looking at ways of fast-tracking the development of these two significant oil discoveries, so we leave our production estimates unchanged.” Today the stock has a nice bounce (at one point hitting a high of $15.43) before the market remembered that we are still not having fun in the markets and any good news is simply not appreciated...just yet. INTL. FRONTIER RES. (V-IFR) $ 0.75 n/c We are not getting the fun and games in the markets we used to, particularly for those high risk/high reward plays and there is no little guy out there with more interesting high risk plays than International Frontier Resources at this time. They should only be days away from some news on their Maria play in the North Sea, but today they announce that they’ve spudded the Dahadinni B-20 wildcat well in the Northwest Territories. This well, according to the press release, is in the foothills of the Mackenzie Mountains about 150 km south of the prolific Norman Wells field and 60 km south of the Company’s Summit Creek discovery well. This is in an interesting area of the NWT and of course pipelines are always going to be a concern. But they certainly have some partners with some deep pockets such as Husky Oil. Our sources indicate to us that if this well is successful, Husky has plans for as much as $20 to $30 million to be spend on seismic and you don’t spend that kind of money unless you think you are looking at something with enormous potential. COPPER PLATINUM ZINC LEAD Despite the fact that we are not having a lot of fun yet in the resource sector, one fundamental remains strong and that’s commodity prices. With wheat supplies in the United States at a 60-year low, wheat price are flirting with all-time highs, but other commodities in mining are having just as much fun and much of it has to do with the power problems in China. With all this snow and cutting to power facilities, some mining operations have shut down. But for such inventory decreases to have been seen in such a short time, tells you that the worlds supply just doesn’t have that much in reserves. Suddenly, copper has had some of the biggest moves since March of 2007 as inventory, particularly at the LME are flirting with new lows. Platinum has hit a new all-time record as once again, we find out about problems in the mining sector as South Africa is having big problems supplying power to its mines. Meanwhile, zinc—one commodity that had been much weaker has also had a huge move because some of its bigger operations are in China where once again, power is also a problem. Also a nice move for lead. So the commodities are having fun and prices are quite decent...sooner or later the mining stocks might benefit, we just don’t know when and how the market will care again, but we suspect it’s coming. What could trigger big interest would be the start of a takeover game because so many stocks are so cheap. NEWMONT MINING (US:NEM) $51.08 -0.21 PETAQUILLA MINERALS (T-PTQ) $ 3.00 +0.05 By now everyone has heard of the news a month ago of NovaGold and suspension of building their potential mine in Northern BC for the simple reason that costs had escalated by a factor of almost three. All those extra billions in costs cast doubt about whether the project would be economic or not. Well, suddenly there is a whole bunch of that going on as Newmont Mining announces that their Boddington mine in Australia has seen its costs escalate 77% to $1.6 billion U.S. This new mine which is expected to produce a million ounces of gold for the first five years and then 850,000 ounces for the next 15 years, has seen big cost increases because of the much stronger Australian dollar, increases in labor costs and of course commodity costs. Meanwhile, another huge potential project has gotten a kick in butt as well and that’s the Petaquilla copper project in Panama owned by Inmet Mining, Teck Cominco and Petaquilla. All of a sudden the costs have more than doubled to $3.5 billion which means the cash costs for a pound of copper have increased 17% to as much as $0.85 a pound. Of course that doesn’t recapture your initial costs, does it? The problem has been created by higher equipment costs, construction costs, erosion control concerns plus higher environmental aspects. It’s a massive deposit, but it tends to be lower grade with only .5% copper and .09 grams per ton gold. The big question is, would this project that would take almost four years to build, go ahead at all? It’s one of the themes out there right now that many of the assumed projects that would go ahead, are suddenly facing big problems. We wonder when will producing mines get a little more respect in an ugly market and we think continued news like this, might do the trick...either that or some takeovers which would also be a possibility. 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.