Granite Oil Corp (GXO.TO)

Active in the Alberta Bakken and Belly River plays. Payback on their wells is very attractive, anywhere from 9 to 15 months. Expected to be about 6000 barrels per day by the end of this year and growing to 8000-9000 barrels per day at the end of 2013. His target is $10. Have enough land and prospects that it appears to be a potential acquisition target for very large companies. Expect that announcements to new reserves will also be quite significant. Trades at 5.4X cash flow.

Drilling the Alberta Bakken oil plays that had been overlooked previously and are having a lot of success. Recently had a resource update that was very robust. Have close to 900 million barrels of oil in place. So far have only booked about 10% of the resource so there is a lot more upside to be had. Very cheap.