Painted Pony Energy (PONY.TO)

Had a short position and has covered that. He is neutral on the name; believes it is a take-over candidate.

The most likely Nat gas take-out candidate for 2013. Well results have been better than what progress had. It trades at a significant to their proven and probable reserves. This is a name you have to be a long term hold of. You could see $17-$20 if you think Nat gas could go to $4.50+. Buy if you are a long term holder.

Good management team and low cost operator. Have a large acreage position in the Montney trend right where Progress was (which was acquired) and a lot of people are thinking this is potentially a takeover candidate.

A call on natural gas and West Coast LNG. This is the most likely take out candidate for 2013. Very much a one-year call. Expect there is a 50%-100% upside from today from $10. They were neighbouring Progress Energy that was taken out at a tremendous premium. There was a 2^nd bidder so there is someone with $6 billion cash burning a hole in their pocket that needs feedstock for LNG. Baseline value for him is their 2 P reserve value (Proven + Probable), roughly $14.50.

If you take this one strictly on a cash flow point of view, it appears a little expensive but she continues to be a big fan. Not only do they have some nice oil in the Bakken but they have really expanded and have a lot of natural gas in BC and lands close to where Progress is. (Being taken over by Petronus.)

Significant land base in northern BC. Gas weighted. The value of their land position and their assets and the potential that they will get, over time, LNG shipments to gas markets, he thinks it is a very good long-term play.

Likes it quite a bit. Lots of land and production, northeast BC. Since Progress Energy is in the process of being taken over, this company will benefit extremely.

When you see the take-out of Progress, this one has had quite a run also. This one could be taken out at $14-$18. He likes the management team. Production was not as good as be expected but he thinks it will still cash flow quite a bit.

(Market Call Minute.) Speculative at the moment. Let it go down a bit because people think it is a takeout.