Vero Energy Inc.

VRO-T

She has moved away from gas names that are highly levered or have their capital programs restrained in a low gas price environment. Had to do a financing because they were drawn above their available bank line. Stopped spending in the 3rd quarter so will probably end the year with less production than when they started. Would prefer Fairborne (FEL-T) instead.

Likes it. Very strong management strong asset base that allows them to grow production. Valuation is 75% of piers.

(Market Call Minute.) Good management. In a holding pattern now. Cut back their drilling because of the weak commodity prices.

(A Top Pick Jan 15/08. Down 32.9%.) Just announced some production numbers which are quite strong. Exited 2008 at around 8800 BOE's a day. Growth rate of about 40%. A Buy.

One of the lowest cost structures for natural gas in the Western Hemisphere. Results of 8,100 BOE’s a day beating his expectations by 800. Making an acquisition which could increase from 8,400 to 8,800. Looking for over 9000 next year. Trades at 2 X cash flow. Strong balance sheet.

Gas producer in Western Canada. Numbers just reported were very strong. Looking for a nice increase in production. Strong cash flow going forward. Good price.

Gassy story. 7000 BOE's a day in gas production with Edson operating costs of $4.50, which is spectacular. Can grow production with just cash flow by 40%. Healthy balance sheet.

Natural gas. Great producer. A little over 1000 BOE's per day in 05 has moved to over 6000. Great drilling success. Low cost producer.

Natural gas. Have done very well in their horizontal play of Rock Creek in Western Canada. Have beaten their numbers regularly.

(A Top Pick Aug 24/07. Up 34%.) Still likes, but have traded in and out. Looking to get back in again. Trading at much less than the peer group multiples on a cash flow basis and net asset value. Good growth still to come. Buy.

A steady grower through the drill bit. Has done extremely well during high and low gas prices.

(Market Call Minute.) Loves the story. 2nd quarter numbers are out.

Very low finding/development costs. Great production. Good solid management team. Expects considerable upside. One issue is that a lot of current production is from just a few wells.

In the 4th quarter of 2005 production was under 1000 BOE's a day. Now over 6000. Have tremendous drilling success. Very low cost operator, so strong net backs. Last quarter they had 100% drilling success.

(A Top Pick May 30/07. Up 15%.) Great drilling success, continue to like it. Add on weakness.