Josef Schachter Grove Energy Ltd. GRV-X HOLD Sep 29, 2006

Has done very well in the last few months. Has a number of properties in Italy, the Carpathians and other areas where they're drilling for natiural gas. Have had some success there. A 40% partner with Sterling Resources (SLG-X) in Romania. The plays are very exciting. Prefers the larger partner Sterling because of their UK action.

Can't get a hold of management. If he cannot get to management in 48 hours, he won't cover them, but he likes the story. Good suite of assets. Could go materially higher.

Partnered with Sterling (SLG-X) in Romania where they hit a dry well. Also have onshore in Italy, which is a very attractive asset. Waiting for them to get a program with their partner and drill. Interesting assets, but execution has been the issue.

Have 2 discoveries, one in Italy and one in the North Sea. Just had a management change. An interesting story and the size of the prizes are material. The question is, when will they get down to a deal on production sharing. They also have to get money to drill.