Parex Resources Inc. (PXT.TO)

This is a Colombian pure play, and management team is very good at allocating capital and measuring risks. Made some acquisitions that gave those lots more opportunities. Have a solid growth project.

The stock has more running room. The management team are conservative guys. There is some political risk. Their wells come out very well, but only for 2 or 3 years. Decline rates worry him.

Was an excellent top pick last November. Pure play in Columbia. Drill results proved to be very good. Fairly valued here. Potential of resource play they are doing right now could be very significant. They have a massive amount of land.

Essentially a pure play in Colombia where they’ve had pretty good drilling success. 18,000 barrels a day and lots of land to drill. The knock against the company has been the very short reserve life, meaning the reservoirs in Colombia are very different from those in Canada. This leads to high productivity in a very short reserve life. The burden on a company to continually add more and more reserves through the drill bit is much higher than it would be in Canada. Since they been so successful last year, they’ve increased their reserve life to 7 from around 4.5, which is a positive. However, it is now trading at a premium to its booked reserve value so you are starting to attribute some value to its exploration, which is fine, but when you contrast this opportunity to some things in Canada, the overall feel of economics is superior in Canada to Colombia. Prefers others.

(Market Call Minute) Doing a great job. Inexpensive explorer producer doing a great job.

(Top Pick Nov 8/11, Down 21.45%) Sentiment has been more and more negative against Columbian stocks. They could be bought out. She is neutral on the stock.

Operates exclusively in Colombia. Company was formed about 4 years ago and has gone from a standing start to about 15,000 barrels a day. This is going to go up to 18,000 next year. Trades at a very, very low multiple of about 2.7X this year’s cash flow and a little bit less for next year. In the next several weeks, they have a drilling program and could have as many as 10 well results between now and the end of the year.

(A Top Pick March 2/12. Down 37.29%.) Came out with some disappointing grow results right after his recommendation. Had been looking for it to exit 2012 with about 14,000 barrels a day in production. Had some disappointing wells and production was only about 12,800. Since the end of the year, they have hit on a couple of big wells and production is now at the 14,000 barrels a day level. Trading at only 2X cash flow

Columbia and Trinidad. Hit exit production guidance for the year. Last couple of wells came in very, very well. Overly penalized for the international exploration discount. Reserve report coming out in the next 2 or 3 weeks.