Manitok Energy (MEI-X)

The prospect of there being equity value in this company is fairly low. If you own, he would Sell and take a tax loss and move on.

It is the epitome of what people don’t want to own today. It has balance sheet issues, okay drilling results, but it is undercapitalized and the management team lost traction with the street.

Has been a favourite of his for a while and he has been wrong, but he still feels strongly about this one. The asset they have there is massive. Prairie Sky has a royalty on it and they are finding they are more oily than they originally thought. One of the lowest cash flow multiples he owns. He wants to see 30 or 40 wells drilled before he makes a decision.

Pressure on this came with the departure of one of the senior guys that was thought to be the sole driver behind their success in the Stolberg play. He feels they have proven to the market that the people still in this company are capable of delivering results. Also, did a big farm-in with Encana (ECA-T) on PrarieSky (PSK-T), and seems they have the competency to chase a reserve like this. Thinks the market has underestimated the potential of Entice. Feels this is a $5 stock.

One of the companies that has not participated in the large rally, primarily because some of the key “value finders” they had been using in the foothills, left to form another company. Have some good wells since that management shift. A big unknown is that they did a massive form on Encana (ECA-T) on their 6 Township block just immediately east of Calgary. A large, large block of land that is relatively shallow. They are just starting that first well. Company is trading at a ridiculously low cash flow multiple. Likes the company.

They are running out of running room in one of their assets. He thinks the market does not understand the steps they are taking on other drilling. So he would not buy it.

Under a cloud right now. The repeatability of their property where they drive most of the production from has raised concern. Signed a deal with ECA-T to exploit massive amounts of their royalty lands. Likes the company.

He has lightened recently. It is one that had an operational misstep recently. There is a fairly spread out asset package there. It certainly has depth of opportunities.

Had a bit of a stumble last year. COO left, which, in his opinion, was one of the core parts of management. Their operations and production updates have not been stellar. He needs to see 2 or 3 more quarters of this company to see if they can turn around operations and get back on the path they were a year ago. Currently trading at a very cheap multiple.

Not a name that he is comfortable with. Lost their key geological person who took them into the disturbed (???) Foothills trend where they had a remarkable amount of success. Their development inventory in that play is shrinking and they’ve since farmed in on Encana (ECA-T) which presents a whole new element of risks. Stock appears to be cheap on current production but cheap stocks usually are more expensive than you thought because production does not quite grow at the same pace.

(A Top Pick Jan 2/13. Down 18.53%.) Has liked this for a long time, but they hit a couple of speed bumps along the way. Criticized early on for not having enough depth in their inventory. Have had great success in the deep basin of Stolberg, but investors were at little concerned so the company stepped out and tried a new play concept that didn’t quite work. Also a key technical guy walked away. The Stolberg play is working phenomenally, 20 great wells, all horizontally drilled. Production of the company is over 5000 barrels a day. A new addition is a farm-in that they did with Encana (ECA-T) in west central Alberta which has very multi zone potential. Lots of infrastructure in the region.

Working with Encana (ECA-T) on old Canadian Pacific (CP-T) railway lands, which is a perfect fit and size for the type of work they do. The long-term productivity and capital efficiency of these wells are excellent. Long-term growth is tied in very well to this area.

Has taken quite a hit over the past few weeks and months, and that is partly due to some personnel changes, and diversifying their portfolio a bit more, which some investors did not approve of. Can see $3-$3.50 for this stock.

(Market Call Minute) Lost their technical expert, switched play type – too many warning signs.

Holds this stock in very high regard. The criticism is that it is a one play focus. Thinks this is one of the rising stars. Their new Encana (ECA-T) farm-in play is an absolute incredible opportunity for them. Very confident technical team.