John Stephenson Petrominerales Ltd. PMG-T HOLD Aug 30, 2012

Have had a string of dusters. Had a large production base with a high decline rate so they were relying on exploration success to make up for their declines. Trading at a very low ratio to proved reserve values. Also, Colombia has been a disaster to invest in.

Not a lot of reserves so not as cheap on a NAV basis. Prefers PBM. If you get bullish on oil, some Colombian plays have a lot of leverage to oil. Oil is fairly valued.

Ugly picture on chart, but in the last number of months it has not made a lower low. That bottom is not confirmed yet.

Have been challenged by operational issues. So beaten up here. Wait for a 10% bounce. Distribution is safe.

He would be switching into something else. Doesn’t see much organic growth coming out of Latin America with this. If you want to be in energy in Latin America, he would consider Pacific Rubiales (PRE-T).

Struggled lately to meet production and growth has been a little bit weak. This is a little bit of an “at risk” stock so he would Sell.

Doesn’t own, but follows it and has a $7.50 target. Not one he is recommending. He believes most of the work on this is in Colombia and Ecuador. If you own, he would switch to something else.

A volatile stock. We have a bottom here but the trend is generally down. You want to wait until it is at $9 to buy. Would get resistance at $15 so take some off the table then.

At one time they were a 40,000 barrel a day producer and he would guess that they have probably had 8 quarters of declining production. Abysmal exploration success. Drilled a lot of dry holes. Also, have issues with convertible debentures that they had to push out the maturity of. They are now trying to divest some pipeline assets.

His company has this as a Neutral with a $7.75 target. He would prefer Pacific Rubiales (PRE-T), which his company has as an Outperform with a $25 target.