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To: Dale Baker who wrote (69265)	11/24/2008 11:00:02 AM
From: Dale Baker	Read Replies (2) \| Respond to of 118717

Canaccord Adams' latest report on PRC: Petro Resources Corporation PRC : AMEX : US$0.45 BUY Target: US$2.92 Irene Haas, MS, MBA 1.713.331.9443 irene.haas@canaccordadams.com COMPANY STATISTICS: 52-week Range: US$0.36 - 3.50 Market Cap (M): US$16.5 Shares Out (M) fd: 36.7 Forecast Return: 593% Ent Value (M): US$28.0 Debt/Capitalization: 31% Current NAV /shr: US$2.92 Avg. Daily Vol. (000s): 160 EARNINGS SUMMARY: FYE Dec 2007A 2008E 2009E Production (boe/d): 341.6 579.6 1,063.0 % Natural Gas: 20% 28% 43% EBITDA (M): -3.5 3.3 9.4 EV/EBITDA: NM 8.5x 3.0x P/CF: 16.9x 2.4x 1.8x EPS: Q1 -0.00 (0.01)A - Q2 (0.09) 0.02A - Q3 (0.04) (0.03)A - Q4 (0.06) (0.00) - Total (0.22) (0.02) 0.14 CFPS: Q1 0.02 0.01A - Q2 (0.01) 0.04A - Q3 0.02 0.04A - Q4 0.00 0.03 - Total 0.03 0.19 0.25 SHARE PRICE PERFORMANCE: COMPANY SUMMARY: Petro Resources Corporation is an oil-leveraged independent oil and natural gas company. It engages in low-risk development and exploration projects in the Williston Basin, North Dakota. The company has a diversified footprint of 47,000 net acres in the US resulting from its strategic partnerships. Petro Resources was incorporated in 2002 and is based in Houston, Texas. All amounts in US$ unless otherwise noted. Energy -- Oil and Gas, Exploration and Production A WELL POSITIONED MICRO CAP Event Petro Resources reported clean EPS of ($0.03) for the third quarter, which was below consensus of $0.02. In our view, the delta is primarily driven by lower gas volumes and higher than expected unit LOE and interest expenses. Looking forward, we believe these items will improve. Additionally, we believe the company is well positioned to weather the storm with its stronger balance sheet. Based on the company’s revised capital budget, we believe it has sufficient capital to fund its operations and expected commitments for exploration and development through 2009. Impact Mixed. The company came in below consensus, but is well positioned to increase production and considerably decrease cash costs in 2009. Action We are maintaining our BUY rating and reducing our target price from $3.12 to $2.92. In our opinion, Petro Resources is attractively priced, trading at a discount to our NAV estimate of $2.44. Additionally, we believe there is upside to our target as we have not included the company’s Haynesville/Bossier exposure in our NAV model. Valuation Our price target reflects our break up value of $2.92 per share (70% of NAV + $1.21 option value) and is equivalent to 11.5 times our 2009E CFPS of $0.25. Next Catalyst Results from the company's Surprise Propsect in the Haynesville/Bossier trend in East Texas are expected by year-end.

To: Dale Baker who wrote (69265)	11/24/2008 11:14:10 AM
From: Keith Feral	Respond to of 118717

Back and forth is better than a straight drop into oblivion. I'm kind of torn about C. At least the systemic risk is gone. That's the biggest positive, so at least people can get back into the preferred stocks and start hunting some value there. C in bk would have been game over for the whole market. It probably takes the big downside risk off the market for now, leaving us with only GM and F to worry about. I like those odds much better than the odds we had last week.