Artek Exploration (RTK-T)

(Top Pick Nov 19/14, Up 6.38%) It was taken out. He felt they would get taken out.

This is a reasonably high risk. Have a large amount of very attractive land in the Montney area in north-eastern BC. Big, big partners. Drilled a couple of bad wells and have some execution problems. Got rid of some people. Just drilled a well a little while ago, that was the best ever condensate well in BC. Somebody just bought a huge amount of land at $130 million right beside them. If you ascribe that $130 million value to this company's land, you get about a $350 million value plus production of about $150 million. Trading around $250 million enterprise value. If they keep executing, he doesn't think this company will remain a public company more than a year.

(A Top Pick Oct 26/12. Up 11.99%.) Likes what this company is doing. Moving from an exploration to a development stage. You’ll probably see less volatility over the next year. He has been buying more. Can see this at $3.80-$4. A speculative buy and you need a 2-3 year timeframe at least. Doesn’t pay a dividend.

(Top Pick Oct 26/12, Up 8.90%) Small companies are not just looking at what the market wants. They are looking at completion. You can shrug off the last quarter and see it as a buying opportunity. Spot Canadian gas has dropped a dollar. Still likes it. It is just time and gas prices.

Owned in the past. High liquids content in wells that make tremendous economics. A pretty promising growth story. May get bought out or merge. In Alberta. Management is very aligned with shareholders.

(Top Pick Oct 26/12, Up 6.51%)

(A Top Pick Oct 26/12. Up 15.41%.) Still likes. Has been a good performer. Part of it is organic success as they have been drilling some nice wells in the Doyg (?) formation in Inga. A kind of sidecar reason it has been moving up is that Celtic Exploration was taken over by Exxon. They spun out Kelt Exploration (KEL-T) and is a partner in this play.

Production stream is about 60% gas and 40% liquids or oil but is viewed as a gas stock. Have an interesting play in north-eastern British Columbia in the Inga area. Getting great results. Early in the play. Production numbers are just below 3000 barrels a day and management thinks they will exit around 4000. The most valuable liquid stream coming out of natural gas is condensate which is what they use in the oil sands. It enables bitumen to run through a pipeline. Very valuable right now.