Coal bed methane gases are very shallow to drill, but the flow is very slow so you need high gas prices to make an operation viable. This is one of the companies that he likes. They have a substantial amount of drilling.

Just recently became public. They have no production. Their assets are oil sands leases. They sold a piece of their project to the Chinese. They are now preparing to build an oil sands project. A high risk vehicle.

Last year's earnings were up 40%. Cash flow was up 33%. Looking for a 10% volume growth this year which will mean another 20% growth in cash flow. This stock gives you 100% of a brand-new plant in the oil sands to be constructed this year.

They are involved in a conventional heavy oil play called Moony and they are using horizontal drilling to exploit it. Original estimates of a field at 14 mi.² is now 18 mi.². Should see 20/30% production growth next year. Trades at a low multiple. Because it is heavy oil, it is vulnerable to oil fluctuations.

A drilling rig company that is expanding rapidly. Last year, they had an average of 18 drilling rigs and exited the year with 34. By the end of this year they will be 50/51. The P/E ratio will drop from 30 X’s to 13 X’s. Very cheap stock, but you have to look out to 2007.

Has a target price of $4.50. Loves the project and the company has done a brilliant job. Thinks the market is making a mistake in thinking this company will be taken over.

Heavily involved in coiled tubing drilling which is the type used for shallow wells and especially coal bed methane. They are ideally suited for the most rapid growing sector of the drilling business. Prospects are excellent.

Integrated oils give a bit of downside protection. This is one of the oil sands companies and their production is going to double or triple if their game plan stays in force over the next 10 years. Has a tremendous dividend growth record. Prefers Petro Canada.

Suffered quite a bit last year from natural gas hedges. In the current year, they have about 22% of their gas hedged at only five dollars.

The company is remarkable for its growth and its ability to keep coming up with new ideas for growing production. Expect it will continue to be one of the superior performers.

The one reason it has not performed that well this year is that it is almost 100% natural gas which is sold at a relatively fixed price. Hasn't had any participatiuon in the runup of oil prices. You buy this one for exploration sucess in the future. Fairly valued at this price.

Very cheap stock. In the doghouse with investors since Jan/04 when they downgraded their reserves and production growth outlook. A major partner in Newfoundland will be coming on line at 100,000 barrels a day at the end of the year. Their partner Syncrude is also expanding production. Fort Hills oil sands is expecting 200,000 a day.

Has 2 developments coming on in the North Sea in 2007/2008 which will result in a near tripling of the company's production. Today's price is based on current reserves.

Stock has not done that well because they've had a bit of a shaky growth pattern in the last couple of years. They're on the cusp of a substantial amount of drilling in already discovered reserves. Sees the production growth being in the top quartile of the group over 2006/2007. Low multiple. Some heavy oil.

The entire service industry is pushed to the limit with their capacity of people and equipment. Outlook for them is awfully good.