Innova Exploration Ltd. (IXL.TO)

A very volatile story. There’s a shareholders group that has an offer that they are now re-considering. The 2 main assets are Saskatchewan, which is very exciting, and a gas play in northeast B.C. that has had some dry holes. You are getting the latter one for free.

Have assets in Saskatchewan that is doing very well. Also a play in the northeast corner of British Columbia, which has had some disappointing results. Stock has been beaten up quite a bit. Into a valuation where it might be worthwhile thinking about.

Inexpensive compared to its peers with a 5 X multiple. Expanding its production quite dramatically, basically doubling its growth. Focusing on light oil which is a better place to be than gas.

Likes the production growth that it is giving on a per share basis. 2003's production was about 600 barrels, 2004 was about 1,400 and guidance for 2005 is about 2,000. Management owns about 25% of it.