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To: ms.smartest.person who wrote (3069)	3/29/2008 8:46:39 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition March 26, 2008 CANDAX ENERGY (T-CAX) $0.78 -0.03 We’ve been following Candax Energy since its inception almost three years ago, mainly because of the presence of John Clarke on the management team. He was formerly Canada’s top-ranked oil and gas analyst for two years running and came up with such huge winners as Niko Resources when it was starting out. So when he joined the management team at Candax, we had big expectations when he gave up critiquing others to work at becoming part of the management team to make a company and leave a mark. That mark left is probably that of frustration because while one is used to things not getting done on schedule in the oil and gas business, Candax took things to an all-together new level. One year was spent waiting for a rig. And then waiting for another rig. Another year was waiting for production. Finally this week, Candax and their El-Bibane field offshore Tunisia announces production...sort of! The EBB-4 well started production the week of March 16, but they announced that the production rates have been variable, “due to onshore plant commissioning and weather related delays.” EBB-4 has flowed at a peak production rate of 1400 bopd and expected to rise as the commissioning of the facilities is completed. Canaccord’s Terry Peters suggests “while the results from the El Bibane field are preliminary, we believe the announcement of the first production from the field is positive.” He maintains a speculative buy rating with a target $1.00. Next purportedly for Candax is some high risk/high reward plays in Southern Africa. A cynic after waiting three years for current results might wonder what decade it will be for those plays to happen. Hopefully Clarke can go back to picking a few stocks and chose a winner for us. BANKERS PETROLEUM (T-BNK) $1.45 +0.08 We’ve been following Bankers Petroleum since Abby Badwi took over the management of the company, along with his team at Rally Energy, which was one of the most successful oil and gas stories in Canadian history. What he accomplished in such a short period of time with heavy oil in Egypt, was truly phenomenal. So now he has finally announced their plans and did a tour of Europe on what lies ahead for Bankers with their huge heavy oil assets in Albania and natural gas in Oklahoma. As Genuity Capital’s Jamie Somerville writes, “The proposed Albanian capital program of $370 million is more than we had expected (less than $200 million). This indicates management’s firm belief that it can accelerate production with the implementation of multiple recovery techniques. As a result, the targeted exit production rates are also substantially higher than we had previously modeled (i.e., BNK is targeting 20.0 MBbl/d by the end of 2010 compared to our previous estimate of approximately 13.3 MBbl/d risked).” “Our reaction to this aggressive development program is positive because our original recommendation of BNK was primarily based on expectations for accelerated development as a result of the combination of the Albanian assets with the new management team that joined in February. The large capital program also raises funding questions, but we believe that Bankers has sufficient options that this is not overly concerning.” Somerville ends with, “We maintain our buy recommendation with a target price that is increased to $1.80 (from $1.50) due to an increase in fully-risked NAVPS to $1.78 (from $1.49) as a result of our remodeling assets based on recently released reserve increases and this development plan. We expect to review our valuation again once the full NI-51-101 reserve report is available.” We note that Peter Hodson of Sprott fame is also a big believer in the stock, but is looking at taking a longer-term view and has a much higher price over time. 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.