Maison Monthly June 5, 2006

CAPP Conference Edition (June 12th to 14th)

What’s Inside:

1. Maison Coverage List Updates: • Accrete Energy (GZ) • Bow Valley Energy (BVX) • C1 Energy (CTT) • Centurion Energy International (CUX) • Defiant Resources (DFR) • Delphi Energy (DEE) • Find Energy (FE) • Galleon Energy (GO.A) • Gentry Resources (GNY) • Geocan Energy (GCA) • International Frontier Resources (IFR) • Niko Resources (NKO) • Oilexco (OIL) • Real Resources (RER) • Solana Resources (SOR) • Sterling Resources (SLG) • Vero Energy (VRO)

2. Recommended Buy List

3. Coverage List

Josef I. Schachter, CFA, CMA 403.264.4413 [email protected] Brenda Asplund, BA 403.233.8483 [email protected] Jason White, B.Sc., EIT 403.451.9287 [email protected]

Purdy Mackenzie 403.264.5777 [email protected] Lee Raffey, B.Kin 403.264.5777 [email protected]

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Accrete Energy Inc. GZ $7.44 Outperform Potential Upside 75% Target Price $13.00

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 448 835 1,140 Year-end: Dec 31st Natural Gas mmcf/d 5.0 11.7 16.0 Next report: Q2 Aug/15/06 Total 6:1 1,276 2,780 3,800 Shares O/S Volume Growth 419% 118% 37% Basic: 15.2M Per million shares 83.9 166.5 227.5 Fully diluted: 16.7M Gross Wells Drilled 32 40 45 Financial Data Volumes Mix % Market Cap $M: $113M Oil & Liquids35% 30% 30% Enterprise Value $M: $138M Natural Gas65% 70% 70% Enterprise Value per Financials 2006 exit production $: $40,588 Cash Flow/Share $0.90 $1.82 $2.74 Reserve Life Index (years) Dec 05 Price/Cash Flow 8.3x 4.1x 2.7x Proven: 7.2 Capital Exp $49M $35M $45M P+P 10.8 Cash Flow $14M $30M $45M Net Asset Value @ 10% BT CapEx/Cash Flow 3.6x 1.2x 1.0x Dec-05$ 8.05 Debt Apr 06 Commodity Prices Debt Line: $40M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $25M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 31% C$ AECO$8.90 $9.00 $9.00 CEO:Peter Salamon 1.0M CFO: Thomas Dalton 167k Quarterly Results Exec VPRay Dobek 641k Production (b/d) Cash Flow per Share 2005 2006e 2007e 2005 2006e 2007e Q1 1,010 2,224 3,200e 0.14 0.35 0.58e Service Providers Q2 668 2,500e 3,600e 0.09 0.37e 0.65e Bankers: National Bank of Canada Q3 1,202 3,100e 3,900e 0.22 0.51e 0.70e Auditors: KPMG LLP Q4 2,216 3,300e 4,500e 0.46 0.59e 0.81e Engineers: GLJ Exit 2,300 3,400e 4,600e

The analyst(s) and/or immediate family member(s) have a direct/indirect ownership in this company's shares Accrete Energy Inc. Suite 2100, 500-4th Ave SW Calgary, AB T2P 2V6 Phone 403 269-8846 Fax 403 269-8366 Website: www.accrete-energy.com Company History & Management Info: ƒ Accrete was formed in June 2004 after the sale of the Olympia Energy Inc. to Provident Energy Trust with a newly incorporated exploration company spin-out (GZ). The goal of the company is to grow production quickly then maximize shareholder value once again. ƒ Management team: Peter Salamon–President & CEO Ray Dobek–Exec VP Exploration Tom Dalton–VP Finance & CFO Core Areas: ƒ Currently Accrete has 37k net acres with options on 19k additional acres. The two core areas for development and growth are at Harmattan and Claresholm with the prize on these lands potentially in excess of 10MB. The greatest near term exploration potential for the company exists at Edson. Key Impact Plays / Black Gold Wealth Creation: ƒ At Harmattan, the company has multiple development locations on it’s 20 sections land spread. Production is currently 1,600 boe/d with an additional 600 to 800 boe/d behind pipe due to facility constraints. The recently completed 10 mmcf/d processing facility is currently at capacity and we expect additional compression to be added increasing the capability to 14 mmcf/d by June 2006. Development is progressing with 37 of the 68 planned locations having been drilled and 38 of 48 encountered productive zones have been completed. Accrete will have two service rigs completing bypassed productive zones in the coming months. Five Cardium wells are planned for 2006 with a focus on higher working interest lands in order to raise Accretes’ average WI in the project to >75% from 67%. The Cardium trend plays have potential to IP at 60-160 boe/d of 48-degree oil, liquids rich gas and natural gas to a depth of 2,500 metres. A recent well, 14-14 IP’d at 1 mmcf/d with 80 b/d of associated oil. The goal is to find 3-4 metres of pay. The company is planning to drill-to-fill and bring on new production as the existing wells decline. New play possibilities on these lands include the Lower Mannville Basalt Quartz and Viking plays along with delineating the western extent of the Upper Cardium Shore Face Conglomerate trend. The Lower Mannville Channel wells are relatively deep drills to 2,900m and have the potential to IP at 0.5-1 mmcf/d. The Upper Cardium play has several development locations with 4-5 Bcf per well with IP rates of approximately 1 mmcf/d. This play has the potential to almost double GZ’s proven reserves. The majority of locations at Harmattan have dual zone potential (upper and lower sands) with the intent to co-mingle production. To the NE of the existing pool development GZ sees another Cardium sand for further development. Harmattan was evaluated with 6.3 Mboe of P+P reserves with an estimated productive capacity of 750k barrels per year. We anticipate the reserves to increase significantly in the coming year as well production data increases and the evaluators become more comfortable with the play. This long RLI property (~10 years) is an ideal asset for oil and gas trusts for which we expect that a premium will be paid. ƒ With Edson Accrete has farmed in on 13 sections of 100% WI lands and is currently working on adding a greater land position. The area has multi-zone potential in a Cardium trend, Viking, Basalt Quartz and Rock Creek formations. Accrete’s management and exploration team is familiar with the regional play types as previous company iterations explored and operated in adjacent lands. Accrete’s first exploration well in the area will spud June/06. ƒ At Claresholm/Eastmont, the company has a natural gas play on 12 1/2 sections of land. Production is currently ~800 boe/d with 1,100 in current productive capacity which the company expects to ramp up to into summer/06. The potential is for 2 Bcf/well from the Bow Island, Glauc, and Sunburst target zones to a depth of 2,200 metres. In addition GZ has negotiated three farm-in deals with gross land earnings potential of 32 sections in this area. 6 of 11 wells in the area to date have been successes, setting up an additional 10 locations, with GZ planning a number of wells in the area in 2006. The area has sufficient capacity with a 28 mmcf/d metering station at the pipeline and a 10 mmcf/d GZ processing facility which is modular and can be upgraded if successes warrant. Accrete has 3D seismic coverage over most of their lands in the area and could grow this area materially if they are successful with land sales and farm-in deals ƒ With their Devon area Accrete has high impact potential (upside 500 – 800 boe/d net). The project requires a 2 mile pipeline approval but sour gas licensing and land owner issues will continue to plague this play. We do not anticipate any near term achievements in this area. Recent Operational & Financial Results: ƒ Q1/06 production averaged 2,224 boe/d exceeding our 2,166 boe/d expectation. Cash flow for Q1/06 was $0.35/share which exceeded our expectation of $0.32/share. Capital spending for 2005 was $49.3M in 2005. ƒ Accrete divested their Boltan lands (8 sections) and production (~110 boe/d) for $9.55M (~ $87k/boe/d net of land). ƒ Production is currently 2,400 boe/d with 600 to 800 boe/d behind pipe. ƒ In June/05 GZ completed a PP financing where 2M common shares were issued at $7.25/share for proceeds of $14.5M . ƒ Our 12 month stock price target of $13.00 is based on the 2006 cash flow estimate of $1.82 multiplied by the Proven RLI of 7.2 yrs. We expect that a shareholder maximization process will occur within the next year as Accrete’s tax horizon approaches and the true value of Harmattan in demonstrated to potential buyers. An Explore-co may be spun off with some unexplored acreage and modest production. Balance of Evidence Growth Drivers Limits to Growth ƒ The company is operating in areas that have been ƒ Access to service rigs, drilling rigs and skilled pipe successful for the management team in the past. lining crews is tight in the WCSB and may lead to ƒ Established dominance in the core area of delays in drilling, completions and well tie-in’s. Harmattan. ƒ Backlogs at the various regulatory agencies may lead ƒ Maximization process may occur late in 2006. to delays across the whole E&P sector. Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Bow Valley Energy Ltd. BVX $6.50 Outperform Potential Upside 26% Target Price $8.16

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 1,091 720 3,050 Year-end: December 31st Natural Gas mmcf/d 12.8 12.9 27.5 Next Report Q2 May/15/06 Total 6:1 3,227 2,875 7,625 Shares O/S Volume Growth 25% -11% 165% Basic: 69.2 Per million shares 46.7 39.0 103.3 Fully diluted: 73.8 Gross Wells Drilled 2135 45 Financial Data Volumes Mix % Market Cap $M: $450M Oil & Liquids34% 25% 40% Enterprise Value $M: $467M Natural Gas66% 75% 60% Enterprise Value per Financials 2006 exit production $: $133,429 Cash Flow/Share $0.49 $0.43 $1.30 Reserve Life Index (years) Price/Cash Flow 13.3x 15.1x 5.0x Proven: 6.8 Capital Exp$39.5M $100M $140M 2005 P+P 17.1 Cash Flow $32.0M $32M $96M Net Asset Value @ 10% BT CapEx/Cash Flow 1.2x 3.1x 1.2x Dec-05 $4.11 Bank Debt May 2006 Commodity Prices Debt Line: US$60M + C$25M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $17M US$ Brent$54.52 $54.00 $54.00 Insider Ownership 21% C$ AECO $8.90 $9.00 $9.00 CEO:Robert Moffat 1.42M CFO: Matt Janisch 453K Quarterly Results Chairman: Daryl Seaman 6.6M Production (b/d) Cash Flow per Share 2005E 2006E 2007E 2005E 2006E 2007E Service Providers Q1 4,122 2,760 4,500e 0.13 0.09 0.20e Bankers: Canada - National Bank Q2 3,275 2,850e 7,200e 0.10 0.11e 0.30e UK - Bank of Scotland Q3 2,744 2,850e 9,300e 0.10 0.11e 0.40e Auditors: PricewaterhouseCoopers LLP Q4 2,785 3,050e 9,500e 0.16 0.12e 0.40e Engineers: GLJ Petroleum Consultants Ltd. Exit 2,785 3,500e 9,600e

Disclosure: Maison Placements has acted as an agent on a securities offering for this company during the last 12 months Bow Valley Energy Ltd. 1200, 333 – 7 Th Ave. SW Calgary, Alberta T2P 2Z1 Phone: 403 232-0292 Fax: 403 232-8920 Website: www.bvenergy.com Company History & Management Info: ƒ Bow Valley was re-incarnated in 1996 by Chairman Daryl (Doc) Seaman. Robert Moffat, CEO joined BVX in 2001 after his company Courage Energy was sold to maximize shareholder value in a $170M deal. BVX has 17 employees. ƒ Management: Robert G. Moffat – CEO John Essex - VP Op Nick Fairbrother- Dir:International Tom Ruissen – VP Exploration Matt Janisch - VP Finance and CFO David Fleming – VP Int’l Core Areas: ƒ UK sector of the North Sea: BVX holds 79k net undeveloped acres in the UK North Sea. The only producing property currently is the Kyle Field (14.3% WI, operated by CNQ). BVX also has interests in five discoveries at Ettrick, Blane, Chestnut, Enoch and J1, all waiting development. ƒ Western Canada: Natural gas production is from core properties at Earring, Gilby, Highvale, Mirage, Balsam and Rosevear in Alberta. BVX holds net undeveloped exploration lands of around 60K acres in Central AB and the Peace River Arch W5/W6 area. Key Impact Plays / Black Gold Wealth Creation: ƒ In the North Sea: At Enoch, BVX owns a 12% unitized interest in a 9.9MB plus 23Bcf discovery that will be developed with a sub-sea tie back to the Marathon operated Brae “A” platform. Production from this development is expected to be on-stream in Q1/07, adding approximately 1,800 boe/d net to BVX. At Blane, BVX holds a 12.5% interest in a 28MB oil plus 12Bcf gas discovery which is being developed by sub-sea tie back to the BP operated Ula platform. Delays with the pipelining will result in a project completion by April/07 that could add 2,285 boe/d net to BVX. At Chestnut, BVX holds a 15.125% interest in a 6.3MB discovery where the partnership has been given approval to develop the field using a stand-alone FPSO. Sevan Marine of Norway has been contracted for construction of the vessel which is currently on schedule. The field is expected to add 1,512 boe/d (net) to BVX and is expected to be on-stream mid 2007. At Ettrick, BVX is looking to develop a 24MB (upside is >50MB) plus 15Bcf discovery with a stand alone FPSO. The project is operated by Nexen and development could be on production in early 2008. BVX holds a 12% position in the Ettrick field and this could add 2,000 to 3,000 boe/d net to the company. BVX has acquired new exploration acreage in the UK North Sea in the 23rd licensing round. BVX has a 100% WI in the 9/28b block and a 100% and 70% WI in the contiguous 16/27c and 16/27a North blocks respectively. In both of these exploration plays preliminary seismic sees the potential for large hydrocarbon accumulations in the Jurassic which could have significant upside for BVX. Bow valley will be shooting 3D seismic on the acreage in the summer of 2006 and we expect exploration drilling in 2007. ƒ In the coming quarters we are expecting to see further farm-ins with established E&P players in the UK North Sea and a possible entry into the Norwegian sector as BVX looks to lever their large cash flows starting in late 2007. ƒ In Western Canada, BVX intends to drill 30 to 35 wells in 2006, spending $40M. For 2006 BVX has a higher risk/reward profile than previous years. At Ferrier BVX will drill a Banff target which is 3D seismically identified and has the potential for 20Bcf in reserves at 100% WI. Other high impact projects include a pinnacle reef at W. Pembina (100% WI) and a W.Pembina Leduc Banff drill (50% WI) both of which could add materially for the 2007 volumes. BVX has over 75 drilling opportunities in inventory. Volumes in Canada are approximately 2,000 boe/d with ~500 boe/d behind pipe at the winter access area of Snowfall which should be tied in for exit 2006. BVX’s Canadian decline rates are 27-30% per annum. Recent Operational & Financial Results: ƒ In Oct/05 BVX completed a PP financing where 3M common shares were issued at $5.60/share and 700k flow-through shares were issued at $7.15/share for proceeds of $21.8M ƒ BVX has secured a $US60M credit facility with the Bank of Scotland to finance the Capex at Blane, Enoch and Chestnut. ƒ In Q1/06 BVX’s corporate production was 2,760 boe/d (below our previous forecast of 3,400 boe/d) with 2,156 boe/d being from domestic operations and the balance of 604 boe/d from the UK North Sea at Kyle. ƒ Production from the Kyle field was rerouted to the Ramform Banff facility which has driven op costs down from approximately $19.46/boe to an average $6.73/boe (including tariffs). Production from the Kyle Field (operated by CNQ) in Q1 2006 produced 734 boe/d net to BVX, which was down from 1,621 boe/d the previous quarter (604 boe/d sales due to lifting schedule). ƒ Our stock price target of $8.16 is based upon 6.8x (Proven RLI) our 2007 Q2 annualized cash flow of $1.20. With late 2006 as the start of material growth in the UK, a rising cash flow multiple is expected as the proven RLI rises as new fields are brought on and BVX is exposed to more high impact exploration. ƒ With the UK projects coming on stream in 2007 and 2008, it is possible that BVX could lift corporate production to nearly 10,000 b/d in early 2008 and reach cash flow of $1.30/share in 2007 if Brent is at our forecast of US$54. Balance of Evidence Growth Drivers Limits to Growth ƒ Stepped exploration portfolio should take advantage ƒ BVX is vulnerable to delays in its North Sea program of future cash flow to aggressively move from partner if their partners decide to delay drilling or in building to full operator/explorer status in the N. Sea in 2007. the necessary infrastructure to bring on production. ƒ Higher impact drilling in Canada could add material ƒ The shortage of service rigs and pipeline crews may volumes in 2007. lead to cost over runs and delays with the Canadian drilling program.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 C1 Energy Ltd. CTT $2.10 Outperform Potential Upside 60% Target Price $3.36

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 310 410 705 Year-end: Dec 31st Natural Gas mmcf/d 1.9 4.6 7.8 Next report: Q2 Aug/15/06 Total 6:1 627 1,180 2,010 Shares O/S Volume Growth 25% 88% 70% Basic: 33.0M Per million shares 19.0 33.7 57.4 Fully diluted: 35.0M Gross Wells Drilled 22 14 20 Financial Data Volumes Mix % Market Cap $M: $69M Oil & Liquids49% 35% 35% Enterprise Value $M: $77M Natural Gas51% 65% 65% Enterprise Value per Financials 2006 exit production $: $42,778 Cash Flow/Share $0.21 $0.29 $0.57 Reserve Life Index (years) Mar 06 Price/Cash Flow 10.0x 7.2x 3.7x Proven: 8.1 Capital Exp $28.3M $17M $25M P+P: 12.1 Cash Flow $6.3M $10M $20M Net Asset Value @ 10% BT Mar 06 CapEx/Cash Flow 4.5x 1.7x 1.3x $ 2.63 Debt Commodity Prices Debt Line: $17.0M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $7.7M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 8% C$ AECO$8.90 $9.00 $9.00 Chairman:Jim Nieuwenburg 267k Pres&CEO:Hugh Pattillo 191k Quarterly Results VP&CFO:Gary Lobb 252k Production (b/d) Cash Flow per Share Director: Ken McNeill 298k 2005 2006E 2007E 2005 2006E 2007E Herb Pinder 640k Q1 685 685 1,700e 0.05 0.04 0.12eARC Energy Trust 6.0M Q2 770 1,100e 1,900e 0.06 0.06e 0.14e Service Providers Q3 570 1,350e 2,150e 0.06 0.08e 0.15e Bankers: National Bank of Canada Q4 487 1,600e 2,300e 0.04 0.11e 0.16e Auditors: Deloitte and Touche LLP Exit 908 1,800e 2,500e Engineers: Sproule Associates Ltd.

The analyst(s) and/or immediate member(s) of their family own shares in this company

C1 Energy Ltd. 500, 521-3rd Avenue SW, Calgary, Alberta, T2P 3T3 Phone 403 232-1115 Fax 403 232-1130 Website: www.c1energy.ca Company History & Management Info: ƒ C1 Energy (CTT) was founded in 2003 following the Plan of Arrangement with Navigo Energy Inc. CTT’s focus is in western Canada, primarily in the Peace River Arch and Northern Alberta regions. CTT currently has 136k net acres of undeveloped lands along with 168k acres of agreement lands (304k net undeveloped acres total) which is a huge land holdings for a small company. C1 wrapped up the acquisition of Extreme Energy in Dec of 2004. CTT is headed up by Hugh Pattillo, former VP of Navigo Energy and Chief Geophysicist at Petromet Resources. ƒ Management: Hugh Pattillo – CEO&Pres. Bill VanderVeen – VP Exploration Gary Lobb – VP Finance&CFO Jim Dittrich – Chief Geophysicist Ron Barmby – VP&COO Core Areas: ƒ C1 has greater than 150 locations (>5 years of drilling inventory) with multi-zone potential at the core areas of Blueberry, Gift Lake, Seal, Haro, Hobbema and Whiskey Creek. Primary targets are light oil and gas (~2000m) with the exceptions of Whiskey Creek which is deep liquids rich gas and Hobbema where the target is coal bed methane (CBM) and shallow gas. Key Impact Plays / Black Gold Wealth Creation: ƒ At Blueberry/Royce C1 holds 12,198 net acres of 70% operated 67% WI lands with over 11 drill prospects that are primarily full year access. In 2005 CTT drilled 5 wells in the area with 4 successes. The primary targets are natural gas in the Kiskatinaw Gething, Charlie Lake and Wabamun (2300m). The average well cost is $1.2M D&A (gross) and the typical prize is 0.5 - 5Bcf/well with production ranging from 0.5 - 4 mmcf/d. Recent wells have also encountered light oil in the Upper Kiskatinaw with production rates of 50 to 75 b/d and the potential for large reserves (~2MB) which are still being evaluated. This is highly sought after acreage with land recently selling for over $2000/ha. CTT itself will drill 4 wells in the year-round access areas for 2006 with several more possibly during the winter months. The largest challenge in the area is obtaining regulatory approvals for drilling and pipelining due to its proximity to the Dunvegan Provincial Park. ƒ At Gift Lake/Chipmunk/Seal the company is sitting on 72k acres of unexplored lands with a current drill inventory of over 20 drill ready locations located on the Gift Lake Métis Settlement and surrounding area. On the Métis settlement CTT has exclusive access to 168,000 gross acres of undeveloped lands. The Métis interests allow for a 6% override and a 25% back-in (on commercial wells) which allows CTT to explore without competition as their surface rights deal are exclusive. The Granite Wash “G” pool is under water flood and CTT is proposing a horizontal well (100% operated, 75% WI) in Q3/06. The pool currently produces at 150b/d net to CTT and has potential for up to 2.5 MB of recoverable oil. Successful wells can IP at 250 b/d gross of 37o oil. Additionally, in 2006 CTT is planning an active exploration program on the Whitefish Lake Nation lands with 2 wells planned. ƒ With the Haro play, CTT is sitting on 8,800 net acres that are 100% operated and 50% WI (partner is Nav Energy Trust). We believe this property could be considered “non-core” and may be targeted for divesture to raise funds and focus the company. Currently there are 8 - 12 drill ready prospects with prizes ranging from 0.25 - 1 Bcf per well with estimated production rates of 0.5 - 1 mmcf/d. Drill depth is under 1000m and well costs are $350k D&C. The site is winter access only and “at the edge” of infrastructure. CTT currently has 8 wells with 2 mmcf/d awaiting tie-in during winter 2006/2007. ƒ At Hobbema C1 has an emerging CBM and shallow gas play with 12,800 acres (average 50% WI, CNQ operator). C1 estimates 1.7 Bcf/section OGIP from the Horseshoe Canyon coals (0.2 to 0.3 mmcf/d, $300k D&C) and additional upside from the Viking and Belly River. With aggressive down spacing this area could see up to 70 wells over time. ƒ The Whiskey Creek project is a 50/50 non-operated JV chasing multi-zone liquids rich deep gas. This is a development project that has operations planned to further exploit an established liquids rich 42 Bcf gas pool. CTT and its partner are looking at further drilling to increase production and reserves. This could yield a 15 - 20 Bcf reserve increase and up to 3 or 4 mmcf/d with 100 - 150 b/d of liquids for CTT. The Whiskey Creek well would likely be a horizontal re-entry or new drill at an estimated cost of $2M ($1M for CTT). Work at Whiskey Creek may move forward in 2007. Recent Operational & Financial Results: ƒ In Q1/06 C1 Energy had average production of 685 boe/d which missed our estimate of 1,200 boe/d mostly due to delays in tying in production because of breakup and regulatory delays. In Q1/06 CTT did 0.04/share in cash flow missing our estimate of 0.11/share due to the miss in production volumes and significantly weaker natural gas prices. CTT exited Q1/06 at 1,100 boe/d which was previously guided as the 2005 exit rate. ƒ in June/05 CTT raised $12.5M. They sold 4.25M common shares at $2.35 and 833k flow-through shares at $3.00. ƒ In Q1/06 CTT had cash flow netbacks of ~$21/BOE. The modeled netbacks are $20.50 and $24 for Q2/06 and Q3/06 with $27.50 for Q4/06 and beyond. The stepped netbacks are being used to reflect the weak gas prices which are below our current long-term commodity call of $9/mcf AECO. ƒ Our 12-month target of $3.36 is based on a 6x our annualized Q2/07 cash flow estimate of $0.56. Balance of Evidence Growth Drivers Limits to Growth • The significant discoveries at Blueberry will fuel ƒ Potential difficulty obtaining drilling and service rigs. production and reserves growth going into 2007. ƒ CTT’s flagship property of Blueberry is located near ƒ A majority of the 2007 drilling program is low risk an environmentally sensitive area and regulatory development work following up on the 2005 delays may slow the project’s development. exploration discoveries. ƒ Op Costs are high and need to decrease. ƒ CTT is trading below NAV. ƒ Tight balance sheet. Non-core asset sales may be necessary.

Josef I. Schachter, CFA, CMA (403) 264-4413 [email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Centurion Energy Intl. Inc. CUX $7.49 Outperform Potential Upside 100% Target Price $15.00

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 4,115 4,930 6,150 Year-end: Dec 31st Natural Gas mmcf/d112.5 167.6 209.1 Next Report Q2 Aug/15/06 Total 6:1 22,863 32,860 41,000 Shares O/S Volume Growth 99% 44% 25% Basic: 88.9 Per million shares257.2 343.4 428.4 Fully diluted: 95.7 Gross Wells Drilled 29 18 25 Financial Data Volumes Mix % Market Cap $M: $666M Oil & Liquids18% 15% 15% Enterprise Value $M: $747M Natural Gas82% 85% 85% Enterprise Value per Financials 2006 avg. production $: $19,658 Cash Flow/Share $0.75 $1.01 $1.26 Reserve Life Index (years) Dec-05 Price/Cash Flow 10.0x 7.4x 5.9x Proven: 6.1 Net Capital Exp $164.8M $160M $200M P+P 10.3 Cash Flow $65.7M $92M $116M Net Asset Value 10% AT CapEx/Cash Flow2.5x 1.7x 1.7x 2006 $5.58 Bank Debt Mar-06 Commodity Prices Debt Line: US$100M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: C$81M US$ Brent $54.49 $54.00 $54.00 Insider Ownership 22% US$contract Nat Gas$2.80 $2.80 $2.70 CEO:Mr. Said Arrata 1.3M Dir Mike Miller 1.30M Quarterly Results ARC Financial 4M Production (b/d) Cash Flow per Share Delta Oil UK Ltd. 6.3M 2005 2006E 2007E 2005 2006E 2007E Q1 20,650 32,455 38,000e 0.22 0.25 0.29e Service Providers Q2 20,614 32,500e 40,500e 0.15 0.25e 0.31e Bankers: BNS and Standard Bank Q3 24,277 32,500e 42,000e 0.18 0.25e 0.32e Auditors: PricewaterhouseCoopers LLP Q4 25,885 34,000e 44,000e 0.20 0.26e 0.34e Engineers Ryder Scott Exit 38,000 38,000e 45,000e Centurion Energy International Inc. Suite 1700, 205 – 5th Ave. SW Calgary, Alberta T2P 2V7 Phone: 403 263 6002 Fax: 403 263-5998 Website: www.centurionenergy.com Company History & Management Info: ƒ Centurion was created in May 1997 from the merger of Eagle Energy and Canadian Leader Energy. Mr. Said Arrata became the CEO and focused the company on low risk exploitation projects to build early production in Tunisia and then in Egypt. They now have a deal in Sao Tome and are pursuing other African opportunities. ƒ Management: CEO - Mr. Said Arrata Pres & COO – Mr. David Thomas VP Finance - Mr. Paul McDougall VP Engineering – Mr. Robert Macaulay Core Areas: ƒ Centurion is an international energy company with production currently in Egypt. The company holds several massive land positions with 180k net undeveloped acres in Tunisia, 7.3M net undeveloped acres in Egypt and 20k net undeveloped acres in the Sao Tome/Nigerian JDZ. Key Impact Plays / Black Gold Wealth Creation: ƒ In Egypt CUX has 4 exploration blocks with West El Manzala, West El Qantara, West Gharib and Block 2 Ganope. The West Manzala and West Qantara concessions (50% WI) are contiguous to Centurion’s existing El Wastani and South Manzala development leases (100% WI). CUX acquired a 1,400 km2 seismic program in the West Manzala exploration block and is now acquiring a 560 km2 follow up program. CUX sees upside beyond 2 Tcf of gas with 24 prospects. To date only 25% of the concession has been examined. The West Qantara block has 14 leads and greater than 1 Tcf of exploration upside. The potential for high net-back liquids rich gas is present in the Sidi Salem formation which trends into this block. At Block 2, a 5.6M-acre concession (100% WI) with potential beyond 250 MB of 39 degree API oil to the north of the prolific Sudanese oil trend. Seismic is currently being interpreted with 2 – 3 wells planned starting early 2007. Targets are of the 90 to 160 MB size, with 12 anomalies identified on the land. ƒ In Tunisia, there is potential for large deep gas reserves in the Triassic formation at 5,000 metres and the first well (CUX 35% working interest – CUX has an option to back in) to test this play may occur in 2007. This well could take over 100 days to drill at a cost of US$8M. The Prize: If they are successful is a 1-Tcf discovery. The challenge is to find a rig that can drill deep enough. ƒ In Sao Tome, CUX has a 7.5% net interest (negotiating for 2% more to take the WI to 9.5%) in a 212k acre offshore block. This is a high impact deepwater play (an extension of the Nigeria offshore play) with 6 prospects ranging from 300 MB to 900 MB and unrisked total upside of 3.5 billion barrels. The operator (ADDAX) plans to begin drilling a 750 Mb target mid 2007 (3 month drill) contingent on rig availability. A nearby Chevron success is rumored to have >1B barrels of OIIP Recent Operational & Financial Results: ƒ CUX recently announced 3 D&A exploration wells in the W. El Manzala and El Wastani leases. The wells encountered high pressure conditions that overwhelmed the well designs and resulted in the inability to reach the deep targets (Quawasim and Sidi Salem) in addition to damaging the up-hole zones (Abu Madi). We do not believe that these D&A wells condemn the exploration potential of CUX’s western lands but will result in significant delays (Nov/06) before proper high pressure drill pipe can be sourced. ƒ May/06 CUX closed the acquisition of the remaining 25% of the W. El Manzala and W. El Qantara concessions. ƒ April/06 CUX attempted the purchase of Merlon Resources and was subsequently out-bid. CUX received a $US 7.35M termination fee. ƒ March/06 CUX announced that Shell will farm in for 50% into the W. El Manzala and W. El Qantara concessions. Shell and CUX will participate in a 5 well exploration program and this also allows for Centurions eventual entry into the lucrative LNG market. ƒ In El Wastani CUX has completed the construction of a 180 mmcf/d processing facility. Further work is being done on a refrig plant and turbo expander in order to extract further high netbacks liquids by year end. ƒ Centurion’s last financing in Jan/05 raised gross proceeds of $40M via the sale of 2.975M shares at $13.25/share. ƒ Current production is 33,000 boe/d. CUX will be running 3 deep rigs (2 continuously and 1 intermittently) and one shallow-work over rig into 2006 on their Egyptian properties. ƒ Our 12-month stock price target of $15 is based upon 10x our annualized Q2 2007 cash flow of $1.24 plus a premium for the high impact exploration targets that will be drilled over the next 12 months. A material oil discovery at W. El Manzala, Block 2 or Sao Tome would provide the catalyst for significant future cash flow growth and an increase in share price target. Balance of Evidence Growth Drivers Limits to Growth ƒ High impact oil exploration in Block 2 Egypt and Sao ƒ Our boe valuation is based on a 6 to 1 conversion for Tome. natural gas which is the burner tip valuation ƒ Future potential for higher natural gas prices when comparison and does not reflect the value being selling into the LNG market. received of US$2.80/mcf. A dollar value per boe ƒ Excellent finding costs of ~$2/BOE and operating would necessitate a conversion of maybe 24x. costs of ~$2/BOE. ƒ Recent exploration failures will cause significant ƒ CUX is looking to enter a West African country with delays in the 2006 Egyptian exploration program. potential of 8,000 to 10,000 b/d. General market suspicion of the exploration program may penalize CUX until further high impact exploration success occurs.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Defiant Resources Corp. DFR $3.40 Outperform Potential Upside 53% Target Price $5.20

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 141 330 440 Year-end: December Natural Gas mmcf/d 1.0 4.6 10.6 Next report: Q2 Aug/15/06 Total 6:1 316 1,100 2,200 Shares O/S Volume Growth n/a 248% 100% Basic: 18.0M Per million shares 17.6 49.1 98.2 Fully diluted: 22.4M Gross Wells Drilled 25 22 30 Financial Data Volumes Mix % Market Cap $M: $61M Oil & Liquids45% 30% 20% Enterprise Value $M: $67M Natural Gas55% 70% 80% Enterprise Value per Financials 2006 exit production $: $37,222 Cash Flow/Share $0.28 $0.51 $1.14 Reserve Life Index (years) Price/Cash Flow 12.1x 6.7x 3.0x Proven: 6.3 Net Capital Exp $33.3M $35M $40M P+P 13.2 Cash Flow $4.1M $11M $25M Net Asset Value @ 10% BT CapEx/Cash Flow8.1x 3.2x 1.6x Dec 2005$ 3.85 Debt Commodity Prices Debt Line: $14M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $6M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 35% C$ AECO$8.90 $9.00 $9.00 Pres&CEO:Rick Ironside 1.2M Chairman:David Evans 560k Quarterly Results Director:Tim Dunne 1.1M Production (b/d) Cash Flow per Share Director:Naveen Dargan 436k 2005 2006E 2007E 2005 2006E 2007E Director:Gary Bugeaud 555k Q1 109 719 1,700e 0.01 0.09 0.22e Service Providers Q2 244 825e 2,000e 0.05 0.08e 0.26e Bankers: CIBC Q3 386 1,250e 2,400e 0.09 0.14e 0.31e Auditors: KPMG LLP Q4 518 1,600e 2,700e 0.12 0.20e 0.35e Engineers: Sproule Associates Exit 700 1,800e 3,000e

Defiant Resources Corp. Suite 1800, 800-6th Ave SW Calgary AB T2P 3G3 Phone 403 266-5587 Fax 403 266-5506 Website: www.defiantresources.com Company History & Management Info: ƒ Defiant Resources was formed in 2004 after the plan of arrangement with Advantage Energy Income Fund by the management team from the sale of their predecessor company Defiant Energy. Defiant Energy had been built up to 3,450 boe/d, with a strong weighting towards natural gas before the sale. Currently Defiant Resources has 15 employees. ƒ Management: Chairman – David Evans Pres & CEO – Rick Ironside VP Finance & CFO – Rob Solinger VP Operations – Arne Hamarsnes Core Areas: ƒ Defiant has a strong focus in W5 and W6 in NW Alberta with 102k net undeveloped acres and over 50 drillable locations. The company’s focus is in the exciting South Peace River Arch, West Pembina and Northwest Edmonton areas. Defiant’s greatest growth potential exists at their Grand Prairie, Tangent and Sheldon properties. Key Impact Plays / Black Gold Wealth Creation: ƒ At Grande Prairie in the South Peace River Arch core area Defiant has 29 sections with an average of ~80% WI following the land acquisitions in early 2006. Additionally, DFR has 7 sections under option with other prospective land under negotiation. Grande Prairie is DFR’s primary focus with 70% of capex earmarked for the region. The area is highly productive with multi-zone potential (Dunvegan and Halfway) and 4 recent Dunvegan pool discoveries on or near DFR’s lands. A recent DFR Halfway well tested at 5 mmcf/d and a Dunvegan well at 2 mmcf/d. The typical vertical well costs $750k and $950k D&C for the Dunvegan and Halfway respectively. The Halfway targets are slightly sour (1.3%) and DFR has experienced some production constraints resulting from turnarounds at TLM’s Teepee Creek Plant. Defiant will finish construction on a 6 mile sour pipeline by early June/06 to tie-in the two Halfway discoveries to a TLM facility (adding >400 boe/d net, resulting in corporate production of approximately 1,100 boe/d). Further success in the Halfway would require additional compression. Home run potential (>6 mmcf/d and 12 Bcf in reserves) exists in several (3) Charlie Lake anomalies identified on DFR lands. DFR acquired 38 sections of proprietary 3D seismic and purchased a further 14 sections of 3D and has 11 locations being moved to the drill ready stage with 3 wells planned for Q2/06. To the east of GP, DFR holds 23 sections in close proximity to the exciting Puskwa Beaverhill Lake play. ƒ At Reine/Tangent in the South Peace River Arch DFR has 11 sections of land (9 of which were acquired in early 2006 land sales). In Q1/06 DFR drilled two wells with 1 awaiting completion. Current production out of the area is 200 boe/d. The target is a well defined Montney trend. Two separate Montney zones exist (upper and lower) and DFR’s previous wells encountered significant natural gas (1.25 mmcf/d currently) and oil. The area is expected to have 2 mmcf/d in deliverability and DFR recently completed the construction of a pipeline which gives them a facilities advantage in the area. Typical well costs are $850k D&C&Frac. Additional compression in the area may be required. At Sheldon DFR is chasing a Montney trend and has 7 sections of 100% WI and 4 sections of variable WI (80% average). The area requires 1 or 2 more successful wells (Q3/06 drill) to justify a 6.5 mile P/L and 5 mmcf/d refrig/sweetening/compression facilities for a 6 well “drill to fill” development program. ƒ At the West Pembina property of Brazeau DFR is continuing to see success with a water flood program to enhance oil recovery from the DDD Belly River pool. Currently production is 150 b/d (increased from 110 b/d) with 200 b/d peak production anticipated in a year’s time with another million barrels of oil potentially recoverable. Recent Operational & Financial Results: ƒ On Oct 13, 2005 DFR closed a PP financing; 2.3M common shares were sold at $4.35/share and 893k flow through shares were sold at $5.60/share for total proceeds of $15M. ƒ Defiant entered into a Joint Venture agreement with Standard Energy in the Grande Prairie area. The deal sees a land and seismic swap with DFR holding a 55% WI. This will be DFR’s next drilling focus with 2 locations ready to drill Q2/06. ƒ In Q1/06 DFR drilled 4 wells with a 50% success rate. Defiant Resources enjoyed a 68% drilling success rate on their predominantly exploration focused 2005 program. Defiant will have a rig under contract during summer 2006 and may contract a drilling rig for the 2006/2007 winter season as well. ƒ Current Production is 700 boe/d with 600 boe/d behind pipe (400 of which should be tied in June/06 following the completion of the Grande Prairie pipeline). Cash flow netbacks were modeled at $24/Boe, $28/boe and $31.50/boe for Q2/06, Q3/06 and Q4/06 forward respectively to account for near term weakness in natural gas prices which are below our long term commodity call of $9 for NYMEX. ƒ Our 12-month stock price target of $5.20 is based (5.0x) multiplied our Q2/07 annualized CFPS of $1.04. Balance of Evidence Growth Drivers Limits to Growth ƒ Large landing holding in the high impact West ƒ Extremely tight market for drilling rigs, service rigs, Pembina and South Peace River Arch areas. pipeline crews and professional staff has delayed the ƒ DFR has an experienced management team with a 2006 program and may be a reoccurring problem. strong history of shareholder wealth creation. ƒ Backlogged regulatory body is leading to delays ƒ DFR has unrisked exposure to >4,700 boe/d of across the E&P sector. upside on currently held lands. ƒ Potential setback due to the County of Grand Prairie’s efforts to have a petroleum development exclusion zone. Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Delphi Energy Corp. DEE $4.97 Outperform Potential Upside 61% Target Price $8.00

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 913 1,000 920 Year-end: December 31st Natural Gas mmcf/d19.8 34.1 49.7 Next Report Q2 Aug/15/06 Total 6:1 4,221 6,675 9,200 Shares O/S Volume Growth 147% 58% 38% Basic: 55.4M Per million shares76.3 112.4 154.9 Fully diluted: 59.4M Gross wells drilled 45 75 75 Financial Data Volumes Mix % Market Cap $M: $275M Oil & Liquids22% 15% 10% Enterprise Value $M: $337M Natural Gas78% 85% 90% Enterprise Value per Financials 2006 avg. production $: $41,098 Cash Flow/Share $0.80 $1.19 $1.62 Reserve Life Index (years) 2005 Price/Cash Flow 6.2x 4.2x 3.1x Proven: 5.0 Capital Exp $M $112M $125M $100M P+P: 7.5 Cash Flow $M $40M $71M $96M Net Asset V Value @ 10% BT CapEx/Cash Flow 2.8x 1.8x 1.0x Dec 2005 $3.79 Debt Feb-06 Commodity Prices Bank Debt Line: $112M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $62M US$ WTI $56.70$54.00 $54.00 Insider Ownership 7% C$ AECO$8.90$9.00 $9.00 CEO:David Reid 1.1M VP Exp. Tony Angelidis 643k Quarterly Results Production (b/d) Cash Flow per Share Institution:Acuity Funds 13% 2005 2006E 2007E 2005 2006E 2007E Q1 3,685 5,011 8,200e 0.12 0.22 0.36e Service Providers Q2 4,192 6,500e 9,100e 0.16 0.29e 0.40e Bankers: National Bank/ScotiaBank Q3 4,152 7,200e 9,500e 0.20 0.32e 0.42e Auditors: KPMG LLP Q4 4,846 8,000e 10,000e 0.31 0.36e 0.44e Engineers: GLJ Associates Exit 5,500 8,200e 10,200e

The analyst and/or immediate family members have a direct/indirect ownership in this company's shares Delphi Energy Corp. Suite 1500, 444-5th Ave, SW Calgary, AB T2P 2T8 Phone: 403 265-6171 Fax: 403 265-6207 Website: www.delphienergy.ca Company History & Management Info: ƒ Delphi Energy was created in June 2003 following the merger of DT Energy and Rise Energy. ƒ Management: Pres & CEO–David Reid VP Finance & CFO–Brian Kohlhammer VP Exploration-Tony Angelidis COO-Michael Kaluza VP Engineering-Rod Hume Core Areas: • The company has 3 core areas: Northwest Alberta, Northeast British Columbia and East Central Alberta. The highest impact plays are through a JV with a major in NE BC with the Bigfoot project. With Bigfoot, Delphi will add significantly to their land, production and reserves over the next 5 years. Key Impact Plays / Black Gold Wealth Creation: ƒ In North West AB, The key area of Bigstone is currently producing 3,200 boe/d and the primary targets are the Dunvegan (2,200 m, $1.5M D&C) the Bluesky and Gething (2,800 m, $2M D&C). Typical successes in the Dunvegan can be produced at 65 to 90 boe/d and in the Bluesky/Gething at around 100 to 300 boe/d. Further upside is present in 15m thick Viking sand where high quality 450 API oil has been found and production rates are ~ 100 b/d/well. Infrastructure should not be an issue in the area as DEE controls 29% in an 80 mmcf/d facility. Portions of the area have year round access, with the rest winter access only and with limited operating windows due to wildlife regulations. At Fontas, DEE holds a large 167k gross acre land block with an average WI of 20%. Current net production out of the area is 500 boe/d. It is expected that the winter program will increase production to 750 boe/d with normal declines bringing production back down to ~500 boe/d by the 2007 winter drilling program. The 2006 program will have 13 to 15 wells drilled with the primary targets in the Detrital, Debolt and Elkton. Typical rates are 1 – 1.5 mmcf/d out of the Detrital and 0.5 mmcf/d out of the Debolt and/or Elkton. ƒ In NE British Columbia DEE currently has ~ 1,100 boe/d out of the areas of Windflower, Missile, Helmet, Peggo and Clarke Lake. The areas have multi-zone potential from the Debolt (1 mmcf/d) to Mattson Sands (4-6 mmcf/d with potential for 35 Bcf pools). Approximately $15M will be spent in the area during the Q1/06 program with 10 wells planned, tie-ins and seismic to prove up further opportunities. ƒ With Bigfoot DEE entered a Joint Venture with a large independent Canadian E&P where Delphi will drill 19+ wells/year with the potential to earn over 200 sections of highly prospective land. The lands are located in a Jean Marie fairway with multi-zone serendipity in the Montney. Typical Jean Marie horizontal wells cost $2.3M, IP at 2 mmcf/d and have 1 year average production rates of ~ 800 mcf/d. DEE estimates 5 to 10 years of drilling opportunities and gross OGIP reserves of >1Tcf across areas 1 and 2. The estimated required initial capital is $90M, DEE pays 90% to earn a 50% WI in the lands and by Oct/06 could add >1,000 boe/d. Longer term the Bigfoot project has the potential to double Delphi’s production and triple reserves (in the next five years). DEE will be using built-for-purpose rigs (accessed through partners) and expects to drill 4 wells per pad. Most of the property is winter access only, but enough locations exist to keep the rigs busy through break-up and summer. The initial high capex projects such as the all-season road and 12” natural gas transmission line was completed ahead of schedule, in addition Delphi drilled 7 wells (gross) for a 100% success rate into the targeted Jean Marie in Q1/06. ƒ Delphi also has an exploration Joint Venture with multiple high impact prospects with three of four targets being cased and awaiting completion and testing. The final exploration well, “Tower Creek” targeted a pinnacle reef and has the potential for 5 to 20 mmcf/d and 20 to 30 Bcf in reserves. Tower Creek reached TD early June and encountered 109m of reef. Testing will occur over the next 4 weeks with results expected in July/06. If successful the drilling rig will move to an analogous Wabamun reef prospect. These plays have the potential to add 500 boe/d net to DEE for late 2006 or early 2007 and are not included in the companies production forecasts. ƒ With East Central AB Delphi has interests in several bread and butter type oil and gas properties. Current production is 625 boe/d from the area and we expect the properties to be sold June/06 and the proceeds used to pay down debt. Recent Operational & Financial Results: ƒ Based on current CAPEX and commodity prices Delphi believes that they will not be taxable until 2007. ƒ Delphi closed a $14M financing in Dec/05, issuing 2.5M common shares at $5.60/share. In addition Delphi signed a $30M development facility to fund the Bigfoot JV in Dec/05. ƒ Roughly 30% to 40% of DEE’s natural gas production is hedged with a price floor ranging from $8.00 to $10.50 and a price ceiling ranging from $10.00 to $11.35 into the 2006/2007 winter. Cash flow netbacks were modeled at $29/BOE. ƒ Current production is 6,400 boe/d and is expected to be >7,000 boe/d by the end of Q2/06. Corporate declines are estimated at 20% per year. ƒ Our 12-month stock target of $8.00 is based on 5x our 2007 Q2 annualized cash flow estimate of $1.60. Balance of Evidence Growth Drivers Limits to Growth ƒ Multi-year program at Bigfoot which will add ƒ Large debt commitments in a near term softening of significant production and reserves. commodity prices may result in tight cash flow. ƒ Strategic partnership with a large cap E&P. ƒ Large capital spending obligations. ƒ Portfolio approach. High impact program to low risk ƒ Industry backlog within the regulatory bodies in development work. addition to a shortage of skilled professionals.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2005 Find Energy Ltd. FE $10.55 Outperform Potential Upside 47% Target Price $15.50

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 1,409 1,390 2,070 Year-end: December 31st Natural Gas mmcf/d 11.0 25.0 37.2 Next Report Q2 Aug/15/06 Total 6:1 3,246 5,560 8,275 Shares O/S Volume Growth 39% 71% 49% Basic: 35.4M Per million shares 91.7 142.9 212.7 Fully diluted: 38.9M Gross Wells Drilled 63 77 80 Financial Data Volumes Mix % Market Cap $M: $373M Oil & Liquids43% 25% 25% Enterprise Value $M: $427M Natural Gas57% 75% 75% Enterprise Value per Financials 2006 exit production $: $54,050 Cash Flow/Share $1.11 $1.61 $2.51 Reserve Life Index (years) Dec-05 Price/Cash Flow 9.5x 6.6x 4.2x Proven: 5.5 Net Capital Exp $67.8M $110M $110M P+P 7.2 Cash Flow $37.6M $61M $98M Net Asset Value @ 10% BT 2006 CapEx/Cash Flow 1.8x 1.8x 1.1x Mar $8.30 Debt Mar 2006 Commodity Prices Debt Line: $100M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $54M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 5% C$ AECO$8.90 $9.00 $9.00 CEO:Bill Davis & family 869K COO: Nick Wemyss &famil 770K Quarterly Results CFO:Jeffrey Jongmans 338K Production (b/d) Cash Flow per Share DirectorDick Bonnycastle 757K 2005A 2006E 2007E 2005 2006E 2007EArc Financial 7.0M Q1 3,053 4,848 7,900e 0.20 0.36 0.60e Service Providers Q2 3,508 5,500e 8,500e 0.25 0.37e 0.64e Bankers: ATB Financial Q3 3,053 5,300e 8,000e 0.30 0.37e 0.61e Auditors: Collins Barrow Calgary LLP Q4 3,370 6,600e 8,700e 0.36 0.51e 0.66e Engineers: GLJ Exit 5,100 7,900e 9,200e

Disclosure: Maison Placements has acted as an agent on a securities offering for this company during the last 12 months. The analyst and/or immediate family members have a direct/indirect ownership in this company's shares Find Energy Ltd. Suite 2800, Sun Life Plaza, West Tower, 144- 4th Ave. SW Calgary, Alberta T2P 3N4 Phone: 403 232-4800 Fax 403 232-4824 Website: www.findenergy.ca Company History & Management Info: ƒ Find Energy was formed in Sept/03 via the reverse takeover of Lexxor Energy by Sine Energy to form Find Energy. Sine was formed in late 2001 by the former management of Search Energy which converted that company to Advantage Energy Income Fund in 2001 once it had reached 7,000 b/d equivalent of production. We look for them to maximize FE sometime in 2006. ƒ Management: Bill Davis – CEO Nicholas Wemyss – COO Jeff Jongmans – CFO Doug Barry – VP Operations Core Areas: ƒ Find Energy has 4 production areas of which 2 core areas are for exploration growth. In W5, FE has an area with long-life multi-zone deep natural gas. Total net undeveloped acres are 156K with the majority being in the Pembina west core area. Key Impact Plays / Black Gold Wealth Creation: ƒ At Pembina West FE has 75 sections with an average working interest of ~66%. In the greater area FE has working interest in 103 sections of prospective lands. Targets are the Nordegg, Rock Creek, Viking, Cardium, Ostracod, Notikewin and Ellerslie formations to a depth of 2,400 metres. Wells can cost $1-1.25M. Prize targets are 1-3Bcf/well and gross production of 1½-2mmcf/d. A recent well into the Rock Creek tested at 8 mmcf/d and another well into the Nordegg tested at 5 mmcf/d. Further development upside exists by down spacing Rock Creek wells from 1/section to 2/section. An additional upside for the company could be the deeper Nisku play. They hold 15 sections in the play area and have shot 3D seismic and are currently mapping prospects. FE plans to bring in an experienced partner with a strong knowledge of deep sour plays and may be able to drill by year-end 2006 following approval for a sour gas license. In mapping the Nisku prospects, multiple (17) Notikewin channel sands prospects have been identified. In Jan/06 the company completed the building of the 30mmcf/d Blue Rapids facility (3 – 10mmcf/d units). Operating costs have fallen materially with the introduction of the new plant, which also has the ability to produce high netback “frac oil”. FE will be expanding the plant’s capacity to 50 mmcf/d (85% WI) up from the expected 45 mmcf/d due to recent drilling success, with the new production occurring late Q4/06. A drilling inventory of 130 prospects at 4 wells/section should keep the plant at capacity for over 4 yrs. Additional upside exists from Second White Specks (330 API), and Viking (410 API) light sweet oil plays. These wells IP at 200 to 400 b/d and can be produced at 150 b/d. FE plans on keeping 2 drilling rigs and 2 pipeline crews busy at Pembina West through 2006. Current corporate P+P reserves are ~16MB (with the majority at Pembina West). It is estimated that a total of 25.5MB of reserves net to Find Energy are potentially in the Pembina area. Current production at Pembina West is 3,900 boe/d (April 30/06) with production estimated to be 6,250 boe/d following the plant expansion in early 2007. ƒ At Aerial in east-central Alberta Find is developing a shallow gas play targeting Mannville, Edmonton Sands and White Specks gas. Currently there are 26 potential locations with 21 drills planned. In Q4/05 FE drilled 6 wells adding 1.5 mmcf/d in production. A recent success in the Glauc formation tested at 1.5 mmcf/d. When drilling, the leases are prepared ahead of time and the wells will be drilled with a specialized coil tubing rig resulting in very economic 1-day drill times. This play sees potential upside of 700 boe/d over time. ƒ At Whitecourt, Find is targeting Viking, Mannville and Pekisko targets. The most successful Pekisko well (FE 18% WI) IP’d at 7 mmcf/d with 8,000 kpa back pressure and is currently being produced at 1 mmcf/d. This core area is mostly winter access. A recent 76%WI well at Bigstone tested at 2.2 mmcf/d from the Cadomin. Recent Operational & Financial Results: ƒ In Q1/06 FE drilled 17 wells with 15 successes (88% success rate, 14 natural gas and 1 oil). The 2005 drilling program resulted in a fantastic 95% success rate. ƒ In Q1/06 FE missed our production estimate of 5,300 boe/d coming in at 4,848 boe/d. This was mostly due to operational delays at the Blue Rapids facility. CFPS came in at 36 cents/share below our 41 cent/share estimate. Find will be cash taxable in late 2006. ƒ On July 29/05, Find entered a bought deal raising $7.6M gross proceeds via the sale of 1M FT common shares at $7.60. ƒ Corporate declines for 2006 are estimated at 33% for overall production and 27-28% on base production. ƒ In Q1/06 FE had cash flow netbacks of approximately $28.24/boe. To reflect gas prices which are weaker than our long term commodity call we are modeling Q2/06 and Q3/06 cash flow netbacks for Find of $28/boe and $30/boe respectively. Q4/06 forward our modeled cash flow netback is $32/boe. ƒ Find has over 130 drillable locations identified and current production is approximately 5,650 boe/d. ƒ Our 12-month stock price target of $15.50 is based on 6x (premium multiple to the proven RLI due to the large land spread in Pembina, facilities ownership and deep Nisku potential) our Q2/07 annualized cash flow estimate of $2.56/share. Balance of Evidence Growth Drivers Limits to Growth ƒ Seasoned management with a history of success. ƒ Some key areas are winter access only. ƒ We look for them to exceed 7,500 boe/d in late 2006 ƒ Shortage of skilled labor such as welders and and then look to maximize shareholder value. tradesmen may lead to project delays and cost over ƒ Well positioned in the lucrative West Pembina region. runs. ƒ Facilities expansion should fuel growth into 2007.

Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Galleon Energy Inc. GO.A $32.74 Outperform Potential Upside 27% Target Price $41.50

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 2,488 4,280 8,100 Year-end: December Natural Gas mmcf/d 24.3 38.5 59.4 Next Report Q2 Aug 11/06 Total 6:1 6,539 10,700 18,000 Shares O/S Volume Growth 314% 64% 68% Basic: 34.7M Per million shares 205.6 283.8 477.5 Fully diluted: 37.7M Gross Wells Drilled 74 120 130 Financial Data Volumes Mix % Market Cap $M: $1,136M Oil & Liquids38% 40% 45% Enterprise Value $M: $1,196M Natural Gas62% 60% 55% Enterprise Value per Financials 2006 exit production $: $79,733 Cash Flow/Share $2.57 $3.17 $6.11 Reserve Life Index (years) Q4 2005 Price/Cash Flow 12.7x 10.3x 5.4x Proven: 6.2 Net Capital Exp $210.4M $200M $240M P+P 9.9 Cash Flow $78.1M $118M $230M Net Asset Value @ 10% BT CapEx/Cash Flow 2.7x 1.7x 1.0x Dec 2005$ 20.01 Debt May-06 Commodity Prices Debt Line: $150M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $60M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 11% C$ AECO$8.90 $9.00 $9.00 Ex. Chair.Glenn Carley 1.3M

Quarterly Results CEO:Steve Sugianto 1.0M Production (b/d) Cash Flow per Share CFO: Shivon Crabtree 414k 2005 2006E 2007E 2005 2006E 2007E Fund:BlackRock Advisors 4.4M Q1 3,499 8,606 15,500e 0.30 0.55 1.32e Service Providers Q2 5,643 9,200e 17,500e 0.48 0.60e 1.48e Bankers: CIBC Q3 8,064 11,500e 19,000e 0.86 0.87e 1.61e Auditors: Ernst & Young LLP Q4 8,874 13,500e 20,000e 0.93 1.15e 1.70e Engineers: DeGolyer and MacNaughton Exit 9,100 15,000e 20,500e Galleon Energy Inc. Energy Plaza, Suite 500, 311- 6th Ave SW Calgary, Alberta T2P 3H2 Phone 403 261-6012 Fax 403 262-5561 Website: www.galleonenergy.com

Company History & Management Info: ƒ Galleon was co-founded with an A/B structure in March 2003 by Glenn Carley (former CEO of Magin Energy which was sold to a royalty trust in a shareholder maximization process), and Steve Sugianto (previously the VP Engineering and Corporate Development at KeyWest which was also sold to a royalty trust). The B shares will convert in 2008 and we are using one for one in our valuations. ƒ Management: Steve Sugianto–President and CEO Glenn Carley–Exec. Chair Shivon Crabtree–CFO Tom Greschner- VP Production Brent Lacey-VP Exploration Core Areas: ƒ Galleon has 2 major core properties in the Peace River Arch with access to 846K gross undeveloped acres. Resultantly GO.A is the the 2nd largest land holder in the prolific Peace River Arch. The company uses a 33% drilling success rate in its forecasts (actual results: 2005 - 88% and 2004 - 67%). Overall corporate production decline rates are 20% to 25%. Key Impact Plays / Black Gold Wealth Creation: ƒ At Puskwa, by most accounts GO.A has discovered the largest sweet light oil pool in western Canada in the past decade. The 16-32 well encountered 33ft of oil pay with 14% porosity in the Beaverhill Lake (3,050 m) formation. The well tested at 2,559 b/d of 380 API oil. It is estimated that the pool has >100 Mb of OOIP with >25 Mb of oil recoverable. Individual wells cost ~$1.5M, will produce at 300 b/d (restricted) or ~500 to 1,000 b/d following the implementation of gas conservation and when the 10,000 b/d facility is completed in Q4/06. GO.A sees >28 locations for this play on their lands and an estimated 8,000 b/d should be on-stream by mid 2007 from this project. Galleon will have two rigs dedicated to this discovery with 12 wells planned for 2006. Galleon has 3D seismic over the discovery and adjacent lands giving them a competitive edge at future land sales. Down-hole serendipity (3,100 m) exists in the Granite Wash with a recent well testing at 2.7 mmcf/d with 75 b/d of NGL’s. A 10 mmcf/d gas facility will be online for July to handle these volumes. ƒ Galleon possesses a promising “resource” type play running between the core areas of Dawson and Calais. This is a Montney (1,000m) and Debolt (1,500m) tight gas fairway in which Galleon possesses a dominant land position (384 sections, 245K acres). This play has over 150 locations, where typical wells IP at 0.8-1.5 mmcf/d, produce at 0.3 - 0.8 mmcf/d with 1-3 Bcf/well. Typical well costs are $800k D&C. GO.A will have 2 rigs dedicated to this project with >50 wells planned for 2006. A 15 mmcf/d gas plant will be completed for June/06 allowing for production additions of ~1,500 boe/d. GO.A is planning to stage the area’s development and potentially build the facility up to 60 mmcf/d by 2008. ƒ At Calais/Dawson, GO.A sees significant exploratory and development potential with over 100 drilling locations. With Dawson the east side of the block is winter-access-only and the western area is year-round drilling outside of break-up (70% of the lands have year-round access). The wells are very prolific with excellent porosity and multiple target zones including the Notikewin, Bluesky, Debolt and Beaverhill Lake (at Normandville) to a depth of 2,300 meters. The Beaverhill Lake formation has excellent additional upside in light oil with two wells which were brought on at over 500 b/d (wells tested over 1,500 b/d). The Leduc and Wabamun targets are ~10 Bcf per well. GO.A has interests in 11 gas plants (with 70 mmcf/d capacity) and one large oil battery with 20,000 b/d of fluid capacity. In Calais, Galleon has made significant natural gas discoveries in deeper zones with 9 productive zones in total; the Dunvegan, Bluesky, Gething, Montney, Kiskatinaw, Debolt, Wabamun, Banff and Leduc to 2,225m. Wells can cost up to $700k to drill and potential production is 1-5mmcf/d gross. Deep potential to the 2,200 meter level may have targets of 200Bcf. A developing area for Galleon is at Eaglesham where a recent 3D seismic program has identified significant upside in the Dunvegan (>50 Bcf ultimate potential). GO.A will complete a 10 mmcf/d facility for the end of summer 2006 allowing for aggressive development. Recent Operational & Financial Results: ƒ Production in Q1/06 came under our forecast of 9,500 boe/d, coming in at 8,606 boe/d. CFPS for the quarter was 55 cents/share missing our 1.03 cents/share forecast partly due to industry cost pressures and weak gas prices. ƒ Galleon will split 3 for 2 class “A” shares following approval at their June 2006 special meeting of shareholders. ƒ Feb/06, GO.A closed a private placement raising $55M via the sale of 2.27M class “A” shares at $24.25/share. ƒ Current production is 8,600 boe/d with approximately 3,000 boe/d to be brought on-stream in Q3/06 and Q4/06. ƒ Galleon will have 5 rigs under contract for most of 2006. GO.A currently has over 300 locations in their inventory with 120 wells planned for 2006. Q1/06 saw GO.A drill 30 wells with 25 successes. ƒ Our 12-month stock price target of $41.50 is based upon 7.0x our annualized Q2/07 cash flow of $5.92/share. Modeled netbacks for Q2/06 and Q3/06 are $27 and $31 respectively to account for natural gas weakness relative to our $9 price call and increased near-term royalty rates. We are using $35 netbacks for Q4/06 onward as GO.A brings on more low Op costs facilities and higher netback light sweet oil. Balance of Evidence Growth Drivers Limits to Growth • High impact sweet light oil discovery at Puskwa will ƒ Access to service and completion rigs in this result in GO.A being the largest mid-cap E&P sweet busier environment is competitive and could light oil producer. impact Galleon as it is a very active explorer. • GO.A drilling mix is targeted at 30% multi-zone ƒ Weather, equipment manufacturing delays as well gas, 25% light oil, 45% long RLI gas and 10% as third party plant access and startup issues. deep high impact.

Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Gentry Resources Ltd. GNY $5.30 Outperform Potential Upside 36% Target Price $7.20

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 1,330 1,570 1,925 Year-end: December 31st Natural Gas mmcf/d 11.717.4 21.5 Next report: Q2 Aug/12/06 Total 6:1 3,2804,475 5,500 Shares O/S Volume Growth 55%36% 23% Basic: 38.6M Per million shares 85.0106.3 130.6 Fully diluted: 42.1M Gross Wells Drilled 8890 100 Financial Data Volumes Mix % Market Cap $M: $205M Oil & Liquids41%35% 35% Enterprise Value $M: $248M Natural Gas59%65% 65% Enterprise Value per Financials 2006 exit production $: $48,627 Cash Flow/Share $0.91$1.11 $1.50 Reserve Life Index (years) Dec-05 Price/Cash Flow 5.8x4.8x 3.5x Proven: 4.2 Net Capital Exp $53.9M$43M $50M P+P 7.6 Cash Flow $35.2M$46M $63M Net Asset Value @ 10% BT CapEx/Cash Flow 1.5x0.9x 0.8x December 2005 $5.54 Debt Commodity Prices Debt Line: $50M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $43M US$ WTI $56.70$54.00 $54.00 Insider Ownership 10% C$ AECO$8.90 $9.00 $9.00 CEO:Hugh Ross 1.8M CFO: Ketan Panchmatia 242K Quarterly Results Director Bruce Macdonald 257K Production (b/d) Cash Flow per Share Director Mike Halvorson 493K 2005 2006E 2007E 2005 2006E 2007E Q1 3,061 4,116 5,000e 0.15 0.23 0.34e Service Providers Q2 3,047 4,300e 5,300e 0.17 0.26e 0.36e Bankers: National Bank of Canada Q3 3,154 4,600e 5,700e 0.26 0.29e 0.39e Auditors: Collins Barrow Calgary LLP Q4 3,851 4,900e 6,000e 0.33 0.33e 0.41e Engineers: Martin & Brusset Associates Exit 3,900 5,100e 6,200e

Gentry Resources Ltd. 2500, 101 – 6 Th Ave. SW Calgary, Alberta T2P 3P4 Phone: 403 264-6161 Fax: 403 266-3069 Website: www.gentryresources.com Company History & Management Info: ƒ Gentry was founded in 1981 and Hugh Ross became its CEO in 1990 when the company was reorganized. ƒ Management: CEO - Hugh Ross COO - Gordon McKay CFO - Ketan Panchmatia VP Explr-George Magarian VP Land – Larry Buzan VP Operations – Rob Poole Core Areas: ƒ Gentry operates in 3 core areas; Southern AB at Princess & Tide Lake, East Central AB and an emerging core area in W5 in West Central Alberta and holds over 163K net acres of undeveloped land. GNY also has production from non- operated holdings in Southwest and Southeast Saskatchewan. Significant growth should be seen in upcoming quarters as facilities issues are resolved. ƒ Gentry is exposed to international plays through its 8% ownership in Stratic Energy Corporation. Each share of GNY is backed by 0.3 share of Stratic, which trades under the symbol SE and trades at $1.30. Stratic is currently developing an offshore gas project in Turkey and will be involved in wells in Morocco, North Sea and Syria with partners or via farm-outs in the coming quarters. Key Impact Plays / Black Gold Wealth Creation: ƒ At Princess in Southern Alberta, Gentry control’s 207 sections (95% operated) in this core area following a major acquisition in 2004. The lands have multi-zone potential from the deeper Nisku gas (plans to drill 2 wells in Q3/06) to the shallower Mannville gas plays and GNY sees over 30 locations. At Princess North the sour gas facility is up and running (intermittent) at 12-13 mmcf/d and ultimately 15 mmcf/d (4 mmcf/d net to Gentry by summer of 2006). Additional upside exists on GNY’s 130 sections at Bantry which will start to be explored in late Q2 of 2006 with 30+ locations identified. Oil production comes from its Tilley field with 12 wells producing approx 800 boe/d net. Gentry completed a battery in Q1/05 at Tilley which allows for more efficient and cost-effective fluid handling up to 10,000 bf/d. Two other Pekisko pools are being actively developed to establish the size of further fluid handling facilities over the next several quarters. At West Tide Lake, Gentry has full 3D seismic coverage and expects to drill 10 wells in 2006. Current production from this area is 1,500 boe/d net to GNY (76% WI). In addition GNY is adding compression to expand the gas plant to 10 mmcf/d (8 mmcf/d net to GNY). At South Tide, GNY sees upside in the Colony and Glauc and has grown its land position to 32 sections. Current production in this core area is approximately 2,300 boe/d and upside could provide >1,000 boe/d through 2006. ƒ At Sedalia – in East Central AB, GNY controls 112 sections of land with an average working interest of 88%. GNY is looking to build this into a larger core area. Current production is estimated to be 1,000 boe/d with additional production behind pipe awaiting tie-in. The area has 15 separate zones that have been identified in 9 separate wells ranging from the shallow Milk River (400m) to the deeper Detrital zone at 1,100 meters which has had good initial success. GNY has 20 locations to drill and sees upside to 2-3 wells/section. The near term focus will be the Viking and Colony. Production/well is estimated to be 150mcf/d, up to 1.0mmcf/d, with the wells averaging 250mcf/d. ƒ At Whitecourt, northwest of Edmonton the company has 37 sections of land (57% WI), with extensive 3D seismic coverage and is looking for natural gas prospects with partners HighPine and ConocPhillips (formerly Burlington Resources). Depths are to 1,800 metres. At Whitecourt, they will drill 4 high risk/reward wells in 2006 targeting natural gas and recently had a find in the Goodwin area that tested at 4 mmcf/d (sour) which will be tied into nearby facilities (capacity available) and is expected to produce 2-3 mmcf/d. ƒ With Provost, Gentry has a “resource play” (27% WI) with low deliverability and high repeatability. In 2005 18 gas wells were drilled. For 2006 the program will be ramped up with 25 gas wells (6.8 net) planned targeting shallow Viking gas with some upside potential for encountering Viking oil. Recent Operational & Financial Results: ƒ In Q1/06, production of 4,116 boe/d just under our estimate of 4,300 boe/d. Cash flow per share came in at $0.23 under our estimate of $0.31 due to weakness in natural gas prices. ƒ Capex in 2005 was $53.9M, and it is anticipated that GNY may be taxable in 2006. ƒ In Q1/06, Gentry drilled 12 wells (11.5 net) with an 83% success rate. Currently GNY has 1 rig working. ƒ Gentry is currently producing 4,300 boe/d (~65% gas) and has an estimated 1,100 boe/d behind pipe. Cash flow netbacks were modeled at $27.50/Boe, $29.50/boe and $31.50/boe for Q2/06, Q3/06 and Q4/06 forward respectively to account for near term weakness in natural gas prices which are below our long term commodity call of $9 for NYMEX. ƒ 12-month stock price target $7.20 is based on 5.0x our Q2/07 annualized cash flow estimate of $1.44. Balance of Evidence Growth Drivers Limits to Growth ƒ Resolution of infrastructure issues should allow GNY ƒ GNY has disappointed by missing its production to breach 5,000 boe/d in 2006. forecasts for a number of quarters. With the facilities ƒ Drilling program at Whitecourt has the potential for issues being resolved, volumes growth should be high impact successes. more manageable. ƒ Company guidance is for a 2006 average production ƒ Overall industry tightness with a shortage in drilling of 4,900 to 5,100 boe/d with an exit of 5,700 boe/d. rigs, services and skilled professionals. These volumes are above our model and if achieved would warrant an increase in share price target.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 GEOCAN Energy Inc. GCA $1.85 Outperform Potential Upside 84% Target Price $3.40

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 1,816 2,470 3,030 Year-end: December 31st Natural Gas mmcf/d 2.2 8.3 12.1 Next Report Q2 Aug/15/06 Total 6:1 2,188 3,860 5,050 Shares O/S Volume Growth 49% 76% 31% Basic: 54.5 Per million shares 40.1 61.2 80.0 Fully diluted: 63.1 Gross wells drilled 23 34 40 Financial Data Volumes Mix % Market Cap $M: $101M Oil & Liquids83% 64% 60% Enterprise Value $M: $131M Natural Gas17% 36% 40% Enterprise Value per Financials 2006 avg. production $: $28,478 Cash Flow/Share $0.40 $0.53 $0.68 Reserve Life Index (years) Dec 05 Price/Cash Flow 4.6x 3.5x 2.7x Proven: 5.1 Capital Exp $M $68.2M $35M $50M P+P: 7.7 Cash Flow $M $13.0M $33M $43M Net Asset Value @ 10% BT CapEx/Cash Flow 5.2x 1.1x 1.2x Dec 2005 $2.38 Debt Apr-06 Commodity Prices Bank Debt Line: $42.5M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $30M* US$ WTI $56.70$54.00 $54.00 Insider Ownership 9% C$ AECO$8.90$9.00 $9.00 Pres&CEO:Wayne Wadley 1.4M CFO: Brad Farris 656k Quarterly Results Institutional Ownership: 32% Production (b/d) Cash Flow per Share 2005 2006E 2007E 2005 2006E 2007E Q1 2,223 3,145 4,500e 0.07 0.09 0.13e Service Providers Q2 1,605 3,500e 4,900e 0.07 0.14e 0.19e Bankers: National Bank Q3 2,012 4,300e 5,200e 0.18 0.17e 0.20e Auditors: PricewaterhouseCoopers LLP Q4 2,808 4,500e 5,600e 0.08 0.13e 0.16e Engineers: Sproule Associates Ltd. Exit 3,414 4,600e 5,800e *estimated debt following close of Colombus Exploration acquisition in July/06 GEOCAN Energy Inc. Suite 1100, 717 7th Ave. S.W Calgary, Alberta, T2P 0Z3 Phone: 403 261-3851 Fax: 403 261-3834 Website: www.geocan.com Company History & Management Info: ƒ GEOCAN Energy Inc. (GCA) was founded in 1998 as a JCP, and has explored both domestically and internationally during its existence. GEOCAN now has a focus in 3 core areas; NE BC, Central AB and Lloydminster. ƒ Management: CEO/Pres/Dir–Wayne Wadley VP Finance & CFO–Brad Farris VP Eng & Ops – Scott Gordon VP Land- John Charuk VP Exploration – Rick Musial Core Areas: ƒ The company has 3 core areas: NE BC (Currant/Osborn and Buick Creek), Central AB (Tomahawk, Entwistle, Heldar/Greencourt), and Lloydminster. GCA currently has 110k acres of net undeveloped land. GCA has been transitioning towards a more balanced production mix. They currently are: heavy oil (~46%), light/medium oil (~22%) and natural gas (~32%). Annual corporate production declines are approximately 25%. Key Impact Plays / Black Gold Wealth Creation: ƒ In NE BC, GCA’s most important areas are Currant/Osborn and Buick Creek. At Current/Osborn production is currently 735 boe/d with a recent success in the Gething/Bluesky that tested at 6 mmcf/d (50% WI). GCA has a 50% WI with TLM in a 10 mmcf/d gas plant allowing them an important stake in the available infrastructure in the area as CNRL is the other “Major” and traditionally does not allow facility access. In NE BC the greatest upside is at Buick Creek where GCA has 21 sections of undeveloped land (25 to 100% WI) with multi-zone potential (Notikewan, Bluesky, Halfway, Dunlevy, Gething) and approximately 50% coverage with 3-D seismic. Recent successes in the Halfway/Baldonnel are expected to produce at 2.5 mmcf/d gross (50% WI) following the resolution of pipeline and facilities issues June/06 with an additional 4 well exploration program planned for winter 2006. ƒ In Central AB, GCA has prospective exploration acreage at Tomahawk, Heldar/Greencourt, Entwistle and Highvale. At Tomahawk GCA has 100% WI in 6 sections of land with 10 mi2 of 3-D seismic coverage. Recent successes in the Nordegg and Ellerslie formations have resulted in 2 new pool discoveries; well productivity is expected to be 1 mmcf/d with 60 b/d of associated light oil. Current production is estimated at 520 boe/d with 1 more well to be tied-in by summer 2006. GCA has a rig tied-up and on-site with further drilling (x1) following break-up. With Greencourt GCA has a 25% WI in 18 sections with 25 mi2 of 3D seismic and multi zone potential in the Ellerslie and Nordegg zones. At Entwhistle GEOCAN has a 100% WI in 5 sections with an Ellerslie heavy oil pool (11-12o API), with 90 b/d shut in due to facilities optimization. ƒ In the Lloydminster core area GCA has over 27,360 net undeveloped acres with aggregate current production of ~1,450 boe/d of primarily heavy oil with some shallow gas. At Chauvin/Ribstone production is currently ~510 b/d of medium gravity 250 API Oil. In the W4 area, wells are identified through 3-D seismic and a rig will be dedicated to the heavy oil program into summer 2006. Targets are the Sparky, Colony and Waseca formations with 12 locations ready. ƒ A future growth area for GCA is in the Peace River Arch where GCA finished an 23 mi2 3D program of under-explored acreage with a major E&P. GCA earned a 50% WI in 10 sections with the potential to earn another 68 sections at 50% WI. Following seismic interpretation we anticipate an aggressive exploration program for winter 2006. Recent Operational & Financial Results: ƒ Q1/06 GCA exceeded our 3,100 estimate with 3,145 boe/d. Cash flow met our estimate at $0.09/share. ƒ GEOCAN raised $20M during October 2005, selling 10.8M common shares at $1.85/share through a private placement to pay down debt from the Assure Energy acquisition and to accelerate its drilling program. ƒ In September 05 GCA completed the acquisition of Assure Energy. The deal was done on a stock for stock basis with 0.7 GCA shares per Assure Energy share. Through the deal GEOCAN assumed $20.5M in debt and issued $27.5M in shares. The acquisition initially added ~ 800 boe/d in production, 1000 boe/d behind pipe and some key NE BC infrastructure. Current production from the acquired lands has now been ramped up in excess of 1,300 boe/d. ƒ Geocan has announced plans to acquire private company “Colombus Exploration” . The deal will add 400 boe/d with 200 boe/d behind pipe. The production is from the Mannville, Ellersilie, Glauc, Colony and Belly River with most of the lands in the prospective Westlock/Redwater area. The deal is expected to close mid-July/06. ƒ Current production is 3,300 boe/d with ~550 boe/d behind pipe that should be brought on in Q2/06. ƒ We expect GCA to receive higher operating netbacks with greater increases in light oil and natural gas production. Corporately we estimate operating cash flow netbacks to be $27/boe for the warm weather quarters of Q2&Q3 and $20/boe for the winter quarters of Q1&Q4 when heavy oil differentials widen. ƒ Our 12 month stock price target of $3.40 is based on the Q2/07 annualized cash flow of $0.76 multiplied by the discounted 4.5x multiple (proven RLI 5.1yrs) due to the heavy mix. As the % of heavy oil declines to the 33% target we will raise our multiple to the proven RLI, this should occur after the acquisition. Balance of Evidence Growth Drivers Limits to Growth ƒ GCA has significant natural gas and light oil ƒ High exposure to heavy oil limits upside on exploration upside in NE BC and Central AB. commodity price increases until GCA moves to a ƒ The company has a goal of moving the production more balanced production mix. mix to 1/3 heavy, 1/3 light to medium and 1/3 ƒ Low reserve life index commands lower valuation natural gas in the next two years. multiples.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected] Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 International Frontier Resources IFR $1.59 Corp. Outperform Potential Upside 89% Target Price $3.00 2006 2007 2008 EstimateEstimate Estimate Production Reporting Periods Oil & Liquids b/d 45 100 120 Year-end: Dec 31st Natural Gas mmcf/d 000 Next Report Q2 Aug/17/06 Total 6:1 45 100 120 Shares O/S Volume Growth n/a 122% 20% Basic: 41.8M Per million shares n/a n/a n/a Fully diluted: 45.8M Gross Wells Drilled 344 Financial Data Volumes Mix % Market Cap $M: $66M Oil & Liquids100% 100% 100% Enterprise Value $M: $66M Natural Gas0% 0% 0% Enterprise Value per Financials 2006 avg.production $: n/a Cash Flow/Share n/a n/a n/a Reserve Life Index (years) Price/Cash Flow n/a n/a n/a Proven: 14.0 Capital Exp $16M $20M $30M Established: 14.0 Cash Flow n/a n/a n/a Net Asset Value @ 10% BT CapEx/Cash Flow n/a n/a n/a n/a Debt Commodity Prices Debt Line: $0.0 (SAMI forecasts) Estimate Estimate Estimate Debt Utilized: $0M US$ WTI $54.00 $54.00 $54.00 Insider Ownership (FD) 11% C$ AECO$9.00 $9.00 $9.00 CEO:Pat Boswell 3.6m Director:Mark Powell 369k Quarterly Results Bill McNaughton 65k Production (b/d)* Cash Flow per Share 2006E 2007E 2008E 2006E 2007E 2008E Q1 51 40e 130e 0.00e 0.00e 0.00e Service Providers Q2 43e 40e 130e 0.00e 0.00e 0.00e Bankers: TD Canada Trust Q3 43e 150e** 110e 0.00e 0.00e 0.00e Auditors: Grant Thorton Q4 43e 150e 110e 0.00e 0.00e 0.00e Engineers: McDaniels & Assoc. Exit 43e 145e 90e * success in the NWT or UK N.Sea would see substantial production adds in 2009. ** Production gain contingent on domestic acquisition/purchase in order to further SIDOX technology The analyst(s) and/or immediate member(s) of their family own shares in this company International Frontier Resources Corp. Suite 100, 601-10th Ave SW Calgary AB T2R 0B2 Tel 403 215-2780 Fax 403 215-2788 Website: www.internationalfrontier.com Company History & Management Info: ƒ International Frontier Resources (“IFR”) was founded in 1997 to explore for oil and natural gas both internationally and in the frontier regions of Canada. ƒ Management: Pat Boswell - Pres. & CEO Mark Powell – VP Exp. & Dir. Core Areas: ƒ IFR has a focus in 2 core areas: The Northwest Territories and the UK North Sea. In the NWT, International Frontier holds large land positions in the Central Mackenzie Valley (“CMV”) and Colville Hills. In the UK North Sea IFR has working interests and farm-in agreements in multiple blocks and plans to drill 1 well by year end with 2 to 3 wells in 2007. Key Impact Plays / Black Gold Wealth Creation: ƒ Northwest Territories: IFR has large land positions in the Central Mackenzie Valley (875k gross acres, 5% to 16.1% in eight freehold parcels and 5% to 7.5% in four exploration licenses) over what they believe is a new petroleum province that is under explored and has potential for “elephant” discoveries. In the case of an oil or liquids discovery production can be tied into the Norman Wells Enbridge pipeline. Since the NWT is a frontier area a gas discovery would not be on-stream for 5+ years (2011), contingent on the Mackenzie Valley Pipeline. IFR is anticipating drilling 2 to 3 wells during the winter of 2006/2007 with locations firmed up following the summer seismic programs. Summit Creek: IFR’s discovery well SC B-44 encountered 640 ft of gross reservoir. Two separate zones in the Devonian were each tested at 10 mmcf/d and 3,000 b/d of 560 API condensate; in addition 2 prospective intervals have not yet been tested. The follow up appraisal well K-44 (3,100 m) drilled Q1/06 at a 1.4km offset encountered an encouraging matrix porosity system. The well encountered mechanical difficulties and could not be fully tested this drilling season. IFR paid 5% (~$1.3M) for a 5% WI. The Ordovician exploratory target (3,600 m) was not reached in the 2006 drilling season and may be targeted in a future drilling season. Based on a 100 Mboe prize, this play could be worth $2.20 in NAV to IFR, but still requires further drilling and 3D seismic to quantify and understand the Summit Creek discovery. Stewart: IFR’s D-57 well (7.5% WI) encountered a hydrocarbon column that ranged from 164 ft (50m) to 328 ft (100m) in the Cretaceous. Two DST’s tested the upper portion of the reservoir at a combined rate of 5 mmcf/d. Although the full productivity of this discovery is not known, we believe rates of 10 to 30 mmcf/d are plausible. This was the first discovery in the Cretaceous in the Central Mackenzie Valley and has proven up a new play fairway which IFR and partners believe they hold 95% of the prospective acreage following the acquisition of EL-441 in May/06 which IFR has a 7.5% WI and the consortium has a $10.5M work commitment. This June, a $12 million 200 km 2D seismic survey covering EL-423 including the large Haywood lead will be shot where the consortium (IFR 5% WI) has a $24.5M work commitment. Colville Hills: IFR holds a 25% WI in two exploration licenses (93k net undeveloped acres) and 16.11% in two freehold land parcels (2,175 net undeveloped acres). IFR recently completed an encouraging AeroGrav program and will be planning a seismic program for 2007. Hay River: The company has a 1.9M acre, 100% WI, MOU with the Katlodeeche First Nations. Until land claims are settled, a moratorium on exploration exists. ƒ U.K. North Sea: With the Laurel Valley Prospect (Quad-14) IFR is paying nothing to earn a 10.4% WI – an excellent deal. The exploration well will test 3 separate zones all with significant upside. The Piper, Birch and Kopervik formations have the potential for 52MB, 200MB and 350MB of recoverable reserves respectively. A site survey has been acquired and the well will be drilled by Q4/06 by operator Oilexco. With a 20% chance of success this play could add $5.50 in risked upside to IFR’s NAV. A site survey has been completed and drilling is contingent on rig slots for the Lytham Prospect (Quad 41&42). Using their 25% option on the prospect and farming out the risk IFR will end up paying 5% (US$15M Gross cost D&A) for a 7.5% WI. The play has multi-zone serendipity with 100Bcf, 100Bcf and 300Bcf upside in the Platten, Haupt and Carboniferous respectively. If successful, additional gas targets in the block exist which would add +200 Bcf in upside. With a 20% chance of success this play could add $0.55 in risked upside to IFR’s NAV. With the Ridgewood Prospect (Block 12/17a), IFR has a 50% WI and is looking to farm out 75% of the cost and risk. The prize is 40MB with a 116 MB upside. Joint Venture: IFR (10%) has a joint venture with Nippon Oil UK (Operator), Hunt Petroleum UK, Palace Exploration UK and Exploration Geosciences Ltd. to generate exploration opportunities and evaluate 24th round acreage (June/06). Additionally, IFR with Oilexco and partners negotiated an optional farm-in/seismic agreement to drill an earn-in well on the Quad-21 Belfry Prospect(s) with 2 Jurassic and 1 Paleocene targets that are seen on the recently shot 280 km2 of 3D seismic. If the option is exercised IFR will pay 10% for a 16% WI. Recent Operational & Financial Results: ƒ In Nov/05, IFR raised $5.6M through a PP issuing 3.275M flow through shares at $1.70 with a ½ warrant (1.51M warrants were exercised in May at $1.85/share). As of May 29/06 IFR had $15M in cash with 90% of the recent NWT costs paid for. ƒ IFR is exposed to the exciting Central Mackenzie play with the two existing discoveries and plans to drill 2 to 3 more wells for the 2006/2007 winter season. IFR will be drilling Laurel Valley before year end with potentially other UK N. Sea drills in the next 12 months exposing shareholders to significant NAV upside. Our 12-month stock target of $3 assumes either success in the UK N. Sea or further success in the NWT. Balance of Evidence Growth Drivers Limits to Growth ƒ International Frontier is exposed to high-impact ƒ IFR has negligible production and while the prospects upside from exploration drilling which could increase have high-impact potential the risks & costs are high. NAV materially. ƒ Rigs in the N.Sea may prove difficult to obtain. Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 233-8483 [email protected] Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Niko Resources Ltd. NKO $66.48 MarketPerform Potential Upside 20% Target Price $80.00

Fiscal Year* 2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Following Oil & Liquids b/d 57 250 2,625 Year-end: March 31st Natural Gas mmcf/d 61 82 121 Q4 Jun 29/06 Total 6:1 10,303 13,900 22,700 Shares O/S Volume Growth 48% 35% 63% Basic: 38.3M Per million shares 269.0345.8 564.7 Fully diluted: 40.5M Gross Wells Drilled 2120 25 Financial Data Volumes Mix % Market Cap $M: $2,546M Oil & Liquids1% 2% 12% Enterprise Value $M: $2,580M Natural Gas99% 98% 88% Enterprise Value per 2006 Financials exit production (BOE equiv) $: $238,154 Cash Flow/Share $2.44 $1.93 $3.22 Reserve Life Index (years) March 05 Price/Cash Flow 27.2x34.4x 20.6x Proven: 14.3 Capital Exp $119M$140M $140M P+P 15.9 Cash Flow $87M $75M $130M Net Asset Value @ 10% BT CapEx/Cash Flow 1.4x1.9x 1.1x March 2005 $25.93 Debt Commodity Prices Debt Line: US$40M (SAMI forecasts) Actual Estimate Estimate Net Debt Utilized: US$31M US$ WTI $41.40 $54.00 $54.00 Insider Ownership 18% US$ NGas (India/Bangladesh) $3.45/$2.20$3.45/$2.20 $3.65/$2.20 CEO:Edward Sampson 2.9M* *In addition Edward Sampson is the Fiscal Quarterly Results* executor of Robert Ohlson's estate, +2.8M Production (mmcf/d) Cash Flow per Share GEEMF II S.Asia 1.0M 2005 2006E 2007E 2005 2006E 2007ECentennial Energy 3.3M (June) Q1 43 85 75e 0.37 0.54 0.43e Service Providers (Sept) Q2 47 84 100e 0.40 0.49 0.59e Bankers: RBC/ICICI/ABN/Citibank (Dec) Q3 66 85 170e 0.50 0.48 1.00e Auditors: KPMG LLP (Mar) Q4 91 80e 200e 1.17 0.42e 1.20e Engineers: Ryder Scott /DeGolyer& MacNaughton Exit 100 65e 220e Gaffney, Cline & Assoc. *Niko's fiscal year end is Mar 31. ie: Fiscal 2005 Year End March 31st 2005, Q1, Q2 and Q3 occur in Calendar 2004 Niko Resources Ltd Suite 4600, 400 – 3rd Ave. SW Calgary AB T2P 4H2 Phone 403 262-1020 Fax 403 263-2686 Website: www.nikoresources.com Company History & Management Info: ƒ Niko was formed in March 1987 to engage in exploration and development of natural gas and oil prospects in India and later in Bangladesh and Thailand. The economics are excellent in India due to the 300% cost recovery fiscal regime. ƒ Management: Executive Chairman and Pres – Edward Sampson COO-William Hornady CFO- Murray Hesje Core Areas: ƒ Niko currently has O&G concessions on the west coast of India (Hazira and Surat blocks), east coast of India (D6, NEC25, D4 and Cauvery blocks), onshore Bangladesh (Block 9, Feni, Chattak) and the Fang block in Thailand. Key Impact Plays / Black Gold Wealth Creation: ƒ India west coast: With the Hazira block Niko has 12k acres with a 33.3% WI. In Q3/05 Hazira averaged 49 mmcf/d, net. Niko recently completed their 8th and 9th wells on the block, 5 of which have been completed as oil producers. Initial oil production rates are expected to be 2 - 3,000 b/d gross of light paraffinic oil that can be sold at world oil prices ($1.50 discount to Brent). Transport and processing costs are estimated at $2/Boe. ƒ East coast of India: At the offshore D6 Block (1,800m of water) with 1.9M gross acres with Reliance. Production could be phased in starting calendar 2008 at a gross cost of $1.5B for development and up to $2B for a pipeline to Bombay. This is a world-class play with an estimated 14 Tcf (with the possibility of >25 Tcf) of reserves in which NKO has a 10% interest. Initial production could be 2.8 Bcf/d from the first series of “pods” (each pod should bring on an incremental 700 mmcf/d gross, commencing 2008). The pods will be produced in stages over several years to take advantage of cost recoveries and tax holidays. At full ramp-up the field may be able to produce over 4.2 Bcf/d (net NKO 420 mmcf/d). There still is significant upside on this block as Niko begins to explore in deeper water. Niko sees material upside on seismic in the deeper turbidite fan structures and wants to drill 4-6 exploration wells to refine the size of pipeline to construct. Additionally there is massive oil potential in the Cretaceous horizon with the potential for a billion barrel discovery based on the size of the structures (20km x 10km) and target sediment thickness (100 to 200 ft). The recently drilled MA-1 well had encouraging log results for oil in the Cretaceous. A deep water rig from Venezuela will arrive July 2006 and move immediately to drill oil targets followed by the deep water Miocene gas targets. At NEC 25, a 2.7M-acre concession to the north, there have been multiple successes so far as noted by operator Reliance (NKO 10% WI). This play could be on in 2007 as it is in shallow, 80 m of water, to a depth of 3,800 m and has a potential in 4 zones. Reserves engineers Gaffney, Cline and Assoc estimate 2.3 Tcf OGIP with another 1.4 Tcf on undrilled prospects. These “resources” will be moved to the “reserves” category once a field development plan is finalized. Additional anomalies seen on the newly shot 1,700 km2 of seismic have the potential for 1-2TCF each. NKO is moving ahead with securing a jack-up rig to begin a multi-well program ASAP. The D4 block has 4.2M gross acres with a 15% WI for NKO. Niko sees 5 overlaid stacked structures each analogous to those in the D6 block. Niko will acquire 1,800 km2 of 3D seismic (2006) and begin the drilling of the first of three wells by the end of calendar 2007. This project could be double the size of D6. ƒ At the Cauvery block onshore India (across from Sri Lanka) Niko holds 236k acres with 100% WI. Niko has shot 550km2 of 3D seismic (interpreted July/06) and is planning 5 wells over 3 years. The target could be as big as 100Mb of light oil. ƒ In Bangladesh, Niko is experiencing troubles in receiving payment for gas produced in Bangladesh and is owed revenues by the government. All further development CAPEX will be halted until the payment issue is handled. At Feni, Niko has built gross capacity of 50mmcf/d and is currently producing at around 30 mmcf/d. NKO has an 80% interest, which reduces to 52% after a 300% cost recovery. At Chattak Niko experienced a series of well blow- outs. The company believes the blowout well is now under control with the costs to be US$20M in excess of insurance coverage. Two additional wells will be drilled at Chattak West and one at Chattak East with upside reserves potential of 1TCF. At Block 9, a 1.72M-acre concession, NKO has a 60% interest and 2 successes. At Lalmai-3 the well tested 8.3 mmcf/d. Bangora-1 has 3 productive zones and tested 120 mmcf/d – a fabulous well! Niko plans multiple wells and the gas plant startup and pipeline tie-in should occur calendar H1/06. Each well should produce 40 to 50 mmcf/d. ƒ Niko recently announced the strategic move into Thailand through a 50% WI in the Fang block. This diversifies NKO’s country risk and provides significant upside in shallow oil development and exploration. Starting in Aug/06 NKO and partner Defence Energy Dept. will drill 12 development wells on the Mae Soon oil field. The field is estimated to have 44 Mb OOIP. Exploration upside exists to the North and South of the current development area. A 3-D seismic program is currently being shot with 10 exploration wells planned starting Dec/06. Recent Operational & Financial Results: ƒ NKO recently received an unsolicited bid from the Indian Oil Corporation for the Indian assets. Although the US$ 1.3 Billion dollar bid was rejected, we expect more aggressive bids/take-over attempts in the future. ƒ Fiscal Q3/05 production came in at 85 mmcf/d meeting our expectation. Cash flow of $0.48/share was announced meeting our expectation of $0.48/share. ƒ Mr. Murray Hesje will take over the VP Finance and CFO positions in May/06 following the resignation of Mr. Richard Alexander. ƒ Our 12-month stock price target of $80 is based on the asset value of the company being developed via the drill bit with NKO’s development projects in addition to the tremendous opportunities presented by NKO’s exploration portfolio. Balance of Evidence Growth Drivers Limits to Growth ƒ Niko has significant production coming on in the next ƒ NKO appears expensive on a cash flow multiple basis. few years, and we would expect the company to ƒ Payment problems with the Bangladeshi government draw the attention of a multi-national/national. continue to drag on. Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Oilexco Inc. OIL $5.37 Outperform Potential Upside 40% Target Price $7.50

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 262 6,190 29,000 Year-end: Dec 31st Natural Gas mmcf/d n/a 0.00 0.00 Next report: Q2 Aug/15/06 Total 6:1 262 6,190 29,000 Shares O/S Volume Growth n/a 2263% 368% Basic: 195M Per million shares1.3 29.1 136.2 Fully diluted: 213M Gross Wells Drilled 51210Financial Data Volumes Mix % Market Cap $M: $1,047M Oil & Liquids100% 100% 100% Enterprise Value $M: $1,147M Natural Gas0% 0% 0% Enterprise Value per Financials 2006 exit production $: $38,233 Cash Flow/Share -$0.02 US$0.47 US$2.28 Reserve Life Index (years) Price/Cash Flow** n/a 10.3x 2.1x Proven: n/a Net Capital Exp$90M US$260M US$250M Established: n/a Cash Flow ($0M) US$100M US$486M Net Asset Value @ 10% BT CapEx/Cash Flow n/a 2.6x 0.5x US$4.12 Bank Debt Commodity Prices Debt Line: US$295M (SAMI forecasts) Actual Estimate Estimate Debt Utilized: US$100M US$ Brent $54.52 $52.00 $52.00 Insider Ownership 11% C$ AECO$8.90 $9.00 $9.00 Pres/CEO: Arthur Millholland 957k CFO: Brian Ward 170k Quarterly Results* Director: Fraser Grant 345k Production (b/d) Cash Flow / Share (USD) Institutional Ownership 65% 2005 2006e 2007E 2005 2006e 2007e Merrill Lynch Asset Management 28M Q1 291 250e 32,000e (0.02) (0.02)e 0.63eMeditor 14M Q2 262 250e 28,000e 0.0 (0.02)e 0.55e Service Providers Q3 250 250e 24,000e 0.0 (0.02)e 0.47e Bankers: Royal Bank of Scotland Q4 245 24,000e 32,000e 0.0 0.47e 0.63e RBC, Canadian Western Bank Exit 245 30,000e 30,000e Auditors: Deloitte and Touche LLP *As of Dec 31/05 all of OIL's financials will be reported in USD **CAD to USD conversion of C$0.90/US$1.00 used. Engineers: Sproule Associates Disclosure: Maison Placements has acted as an agent on a securities offering for this company during the last 12 months The analysts and/or immediate members of their families own/have beneficial control of shares in this company

Oilexco Incorporated. 3200 – 715 5th Avenue SW, Calgary, AB, T2P 2X6 Phone 403 262-5441 Fax 403 263-3251 Website: www.oilexco.com Company History & Management Info: ƒ Oilexco Incorporated (OIL) was created in March 1994 following a name change. Oilexco currently trades on the London AIM exchange and the TSX. Oilexco’s primary focus is in the UK Central North Sea, along with some minor exploration and producing properties in the USA. OIL has approximately 25 employees with offices in Calgary and Aberdeen. ƒ Management: Arthur Millholland – CEO&Pres. Rod Christensen – VP Exploration Brian Ward – CFO Gerald Roe – Chief Operating Officer Michael Cairns – VP Corporate Dev. David Marshall – G.M. Oilexco North Sea Core Areas: ƒ The UK Central North Sea is Oilexco’s primary focus and home to all of their highest impact plays. The Brenda-Nicol field development is Oilexco’s potential company maker play with production coming on late Q3/06. Key Impact Plays / Black Gold Wealth Creation: ƒ Brenda-Nicol – Oilexco has a 100% and 70% WI in the Brenda and Nicol fields respectively. Development of these pools will be done with 4 horizontal wells at Brenda and 1 horizontal well at Nicol. Development work began in February and production is expected late Q3/06. Production should be ramped up to 30,000 b/d of 40o oil before year end (with upside of 35,000 b/d). P+P Reserves are 37 MB of recoverable oil. Production will be brought to market through the partially Oilexco owned (CNR operated) Balmoral floating facility. These fields have no royalty, and op costs are estimated at £3.25 (~ US$6) including processing and transport. At our US$52 Brent price, netbacks for this development are estimated to be US$46/boe. All in F&D costs since 2001 are US$8/barrel. This development is financed with a US$245M Royal Bank of Scotland finance facility, which will reduce any further stock dilution associated with the Brenda development. ƒ Disraeli –On block 21-23a in the Central North Sea, OIL drilled the “Disraeli” prospect (95% for 65% WI in the Eocene) Q2/06 encountering approximately 90ft gross of oil column. An appraisal work program involving 2 deviated wells is planned in Q3/06 with the intention of fast tracking the development of the discovery. The find could potentially contain 30 Mb OIIP with ~50% recovery factor and initial production rates of 10,000 b/d net to OIL. The development most likely will be produced through the adjacent Pict/Saxon and Triton facilities with first oil in Q4/07. Long lead items such as “trees”, pipe etc. have been sourced to speed up the development work. The deeper Jurassic prospect did not encounter commercial hydrocarbons. ƒ Shelley – Block 22/2b with a 100% WI. A well drilled by Burmah Oil in 1984 tested oil in the Paleocene (2,400m) and high pressure gas in the Cretaceous and Jurassic (>4,800m). Oilexco will drill the Paleocene target following the Brenda development work and will drill the deeper plays following the upgrading of the Sedco 712 to handle high pressure gas formations. The Paleocene is believed to have 10 Mb of recoverable reserves based on the structural closure but has >180 MB if the stratigraphic interpretation is correct. We expect the well to spud late July/06. A success could come on in 2008. ƒ Laurel Valley – Oilexco will pay 75% for a 45% WI in the exploration well. The well will target 3 separate zones all with significant upside. The Piper, Birch and Kopervik formations have the potential for 52MB, 200MB and 350MB of recoverable reserves respectively. A site survey has been acquired and the well will be drilled by Q4/06. ƒ Kildare – Block 15/26b, 50% WI with a large Canadian Independent E&P as operator. The proposed well is adjacent to a discovery well drilled in 1988 that tested 2,650 boe/d. The target is a fault controlled feature in the Jurassic Ettrick and Tweedsmuir sands with a total depth of 14,000 ft. We expect the well to spud Q4/06 with a 60 day drilling time and upon success, a 3 month test. The potential prize is 100 MB of oil and 200 Bcf of natural gas. ƒ Blackhorse – OIL paid 60% of an exploratory well (estimated £7M cost) to earn a 40% WI in the Blackhorse field and an existing well (estimated 4,000 b/d gross to OIL) that has yet to be tied-in and produced. The well encountered the target zone and flowed an encouraging 5,248 b/d. Further drilling is anticipated for late Q1/07 with the Blackhorse field potentially being tied into the Scott-Telford platform early 2008. Production could start at 20k boe/d gross. Recent Operational & Financial Results: ƒ The Joy well (100%), Palomino well (50% WI), Muness well (45% WI) and Halibut wells encountered non-commercial hydrocarbons. ƒ Sedco 712 – OIL has the SEDCO 712 rig contracted to Mar 2010 at the now very cheap rates of US$113k/day, US$140k/day, US$225k/day and $340k/day for 05/06, 06/07, 07/08 and 08/10 respectively. Currently rigs are in high demand in the North Sea and the typical day rate is over US$250K. This strategic contract has allowed OIL to negotiate for excellent exploration prospects on favorable terms. ƒ In Dec/05 OIL completed a PP financing of 35.33M common shares at $3.70/share for proceeds of $130M. ƒ Our 12-month target of $7.50 is based on 3.0X the Q2/07 annualized cash flow of US$2.20/C$2.50. We are including in our assumptions that one of OIL’s exploration projects will be brought to production by Q4/07. Balance of Evidence Growth Drivers Limits to Growth ƒ Multi-year contract with the Sedco 712 will continue ƒ Pipelining ships are in high demand and any weather putting OIL in a strong bargaining position for future problems may materially impact OIL’s development prospects due to a tight North Sea rig market. schedule. ƒ Oilexco is now fully funded for their Brenda-Nicol development and development operations are on schedule.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Real Resources Inc. RER $23.66 Outperform Potential Upside 60% Target Price $37.80

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 5,152 6,850 7,500 Year-end: December 31st Natural Gas mmcf/d31.4 41.0 67.5 Next Report Q2 Aug/02/06 Total 6:1 10,394 13,675 18,750 Shares O/S Volume Growth 41% 32% 37% Basic: 37.3M Per million shares 278.7 343.6 474.7 Fully diluted: 39.8M Gross wells drilled 135 270 270 Financial Data Volumes Mix % Market Cap $M: $883M Oil & Liquids50% 50% 40% Enterprise Value $M: $965M Natural Gas50% 50% 60% Enterprise Value per Financials 2006 exit production $: $58,485 Cash Flow/Share $3.92 $3.67 $5.54 Reserve Life Index (years) 2005 Price/Cash Flow 6.0x 6.3x 4.3x Proven: 6.2 Capital Exp $M $269.2M $250M $300M P+P: 8.9 Cash Flow $M $133.4M $144M $219M Net Asset V Value @ 10% BT CapEx/Cash Flow 2.0x 1.7x 1.4x Apr 2006 $17.26 Debt Dec-05 Commodity Prices Bank Debt Line: $180M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $82M US$ WTI $56.70$54.00 $54.00 Insider Ownership 10% C$ AECO$8.90$9.00 $9.00 CEO:Lowell Jackson 435k

Quarterly Results DirFrans Burger 656k Production (b/d) Cash Flow per Share 2005 2006E 2007E 2005 2006E 2007EIngalls and Snyder 9 - 10% Q1 8,483 11,196 16,250e 0.66 0.73 1.20e Service Providers Q2 10,620 11,500e 18,250e 0.98 0.72e 1.35e Bankers: CIBC/Scotia/BMO Q3 10,710 15,000e 19,500e 1.11 0.98e 1.44e Auditors: PricewaterhouseCoopers LLP Q4 11,719 17,000e 21,000e 1.17 1.24e 1.55e Engineers: Paddock, Lindstrom Exit 12,200 17,200e 21,500e

Disclosure: Maison Placements has participated as an agent on a securities offering for this company in the last 12 months. The analyst(s) and/or immediate family member(s) have a direct/indirect ownership in this company's shares Real Resources Inc. Suite 700, 555 Fourth Ave. S.W Calgary, Alberta T2P 3E7 Phone: 403 262-9077 Fax: 403 262-6403 Website: www.realres.com Company History & Management Info: ƒ Real Resources was founded in 1978 and the present team took over in 1997 when RER was producing 400 b/d. ƒ Management: CEO–Lowell Jackson CFO–Pamela Orr VP Exp-Frank Muller VP Land-Mike Stone VP Op-Dean Tucker VP Engineering – Rodger Trimble Core Areas: • The company has 5 core areas: East Central AB, Central AB, Southern AB, West Central AB and SE Saskatchewan with 408k net acres of undeveloped land at the end of Q4/05. In 2006 RER is planning a 145 conventional and 125 shallow well drilling program. Corporate declines are 25% and approximately 1/3 of drilling is focused on exploratory wells (excluding shallow gas/CBM program). Of this drilling 5-10% of capex are for high risk/high impact targets. Key Impact Plays / Black Gold Wealth Creation: ƒ In West Central AB, RER has had tremendous success in the Judy Creek/Whitecourt/Windfall area. RER holds interests in 228k net undeveloped acres of land and the current productive capability is >3,500 boe/d with current production of 2,200 to 2,500 boe/d. In 2005, the company drilled 3 successful high-impact plays targeting Devonian oil and gas (3-28 is currently producing at a restricted 500 b/d of oil) with the two best wells testing at 1,400 b/d and 1,000 b/d with associated gas. Recent success with the Nisku “A” pool could yield RER 15-20 MB OOIP and has water flood potential. Further Nisku anomalies (7) identified on seismic will be drilled in 2006/2007. RER extended the pool boundaries on its Virginia Hills oil play and is planning a further delineation wells with productivity estimated to be 100 to 500 b/d/well. In Q1/06 the company drilled 2 oil wells, 2 gas wells with one D&A in the area. The wells are currently being evaluated to determine their potential and RER is planning 6 wells in Q4/06 for their high impact plays. Further upside in natural gas exists in the Jurassic, Gething and Notikewin with a recent well IP’ing at 5 mmcf/d. At Two Creeks RER announced gas discoveries with two wells capable of 6 to 8 mmcf/d. RER has just completed two large seismic shoots in the area. Additionally, a 40 mmcf/d capable (currently 2,500 boe/d behind pipe) 27 mi pipeline should provide for significant volume growth following completion in Q3/06. ƒ In East Central, Central and Southern Alberta, RER has production of 1,200, 2,300 and 3,500 boe/d respectively. In East Central AB, RER has 24k net undeveloped acres and is chasing Glauc sands, Viking, Ellerslie and Colony gas and sees good potential in the up-hole Mannville CBM and Edmonton sands. At Ferrybank RER estimates their two oil pool developments have 40 MB of 350 API oil. Currently the recovery factor is ~5% but RER anticipates this can be improved to 35% adding 10 MB of recoverable oil. In Southern AB RER has 95k net undeveloped acres and will pursue an aggressive program that is targeting Medicine Hat and Milk River shallow gas. At McGregor RER increased their facility capacity to 14mmcf/d in Q1/06. This will allow for increased drilling and down spacing development. ƒ In SE Sask, Real has 16k net undeveloped acres and current production is 2,500 boe/d. Real has a dominant land position on a 40o API Alida-Frobisher oil pool that can be developed using tightly spaced (75m) horizontal wells, with 43 MB of oil in place. Wells IP at ~90 b/d and are produced at ~40 b/d. RER will have a rig permanently dedicated to its development with 30 to 40 wells being drilled every year. Due to the large drilling inventory (>190 locations) a second rig may be dedicated to this project full time. RER believes there is further potential in a deeper sandstone (1,600 m) and will drill 8 to 12 exploration tests in 2006. Production could reach 3,000 boe/d by year end. ƒ CBM Development. RER commissioned Sproule to evaluate the Coal Bed Methane (CBM) potential of their lands. The report gives RER an unrisked “contingent resource” in excess of 2 TCF OGIP over 360 net sections. The Belly River (10% of resource) and Horseshoe Canyon coals (9% of resource) are proven producers with rates of 50 to 150 mcf/d possible. The Mannville (81%) is the most technically challenging coal with water production and completion issues but potentially having the highest productivity with rates up to 500 mcf/d possible. RER is beginning to explore the CBM potential with up-hole re-completions and may initiate a Mannville CBM pilot project. The CBM potential of RER’s lands could represent enormous value ($0.9B NPV 10%) in the long term but will require massive capital investments (est. $1.3B). In comparison to Real’s conventional projects, CBM has the least attractive rate of return but is very attractive to Trusts and large E&P players due to the long RLI and its predictability and repeatability. Recent Operational & Financial Results: ƒ Real raised $60M during August 2005, selling 2.67M common shares at $22.50/share. ƒ RER has 4 drilling rigs and several service units working and believes that they will not be taxable until 2007. ƒ Current production is in the 11,500 to 12,000 boe/d range with 4,000 boe/d awaiting tie-in during 2006. Cash flow netbacks were modeled at $27.50/Boe, $28.50/boe and $32.00/boe for Q2/06, Q3/06 and Q4/06 forward respectively to account for near term weakness in natural gas prices. ƒ Our 12-month stock target of $37.80 is based on the a premium multiple of 7x (proven RLI 6.2 yrs ) our 2007 Q2 annualized cash flow estimate of $5.40 due to the dominant land position, high impact exploration program and large CBM potential. Balance of Evidence Growth Drivers Limits to Growth ƒ High risk/reward drilling in W. Central Alberta could ƒ Increasing cost pressures, and difficulty attracting add substantially to production going forward. qualified people and services. ƒ Upside on lands could take the company over 20,000 ƒ As RER grows, fighting the decline treadmill will boe/d in upcoming years with additional CBM upside. become increasingly difficult.

Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Solana Resources Ltd. SOR $1.83 Outperform Potential Upside 173% Target Price $5.00

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 265 590 1,525 Year-end: December Natural Gas mmcf/d n/a n/a n/a Next report: Q2 Aug/30/06 Total 6:1 265 590 1,525 Shares O/S Volume Growth n/a 123% 158% Basic: 85.7M Per million shares 4.1 6.6 17.0 Fully diluted: 89.6M Gross Wells Drilled 81015Financial Data Volumes Mix % Market Cap $M: $157M Oil & Liquids100% 100% 100% Enterprise Value $M: $163M Natural Gasn/a n/a n/a Enterprise Value per Financials 2006 exit production $: $130,833 Cash Flow/Share $0.05 $0.11 $0.23 Reserve Life Index (years) Price/Cash Flow 36.6x 18.3x 8.0x Proven: n/a Capital Exp $33.7M $50M $60M Established: n/a Cash Flow $3.6M $9M $20M Net Asset Value @ 10% BT CapEx/Cash Flow 9.4x 5.6x 3.0x n/a Debt Commodity Prices Debt Line: $120K (SAMI forecasts) Actual Estimate Estimate Debt Utilized: $0K US$ WTI $56.70 $54.00 $54.00 Insider Ownership 12% C$ AECO$8.90 $9.00 $9.00 Chairman:Raymond Antony 370k

Quarterly Results Pres/CEOStephen Newton 2.6M Production (b/d)* Cash Flow per Share Director: Stan Grad 2.3M 2005 2006e 2007e 2005 2006e 2007e Institutional: Touradji Capital 10.4M Q1 74 425 1,100e -0.01 0.03 0.04e Service Providers Q2 225 450e 1,300e 0.01 0.02e 0.04e Bankers: Royal Bank of Canada Q3 322 650e 1,700e 0.01 0.03e 0.05e Auditors: Deloitte & Touche LLP Q4 438 850e 2,000e 0.04 0.03e 0.06e Engineers: DeGolyer & MacNaughton Exit 485 1,200e 2,200e * risked estimate. Multiple projects have the potential to add material production gains if successful. Disclosure: Maison Placements has acted as an agent on a securities offering for this company during the last 12 months. The analyst(s) and/or immediate family member(s) have a direct/indirect ownership in this company's shares

Solana Resources Inc. Suite 920, 706-7th Ave SW, Calgary AB T2P 0Z1 Phone 403 266-7512 Fax 403 266-7521 Website: www.solanaresources.com Company History & Management Info: ƒ Solana Resources (SOR) is a Canadian domiciled exploration and production company focused in Colombia, through a wholly owned subsidiary Solana Petroleum Exploration Colombia Limited. SOR has 25 employees with the corporate headquarters in Calgary and the operating head office in Bogota. Colombia is currently an oil exporting nation but current production trends suggest it will become an importing nation in the coming years if exploration is not ramped up. The county is under-explored relative to Canada and the U.S. and has extensive infrastructure so discoveries can be brought on quickly. ƒ Management: Stephen Newton – CEO Menno Wiebe – VP Exploration Scott Hamilton - CFO Core Areas: ƒ Solana has over 700K net acres with interests in 14 blocks and operator-ship of 7. Colombia has enacted new legislation to encourage drilling in the country. With success in limiting terrorism, the upside for companies in the country is significant as the prizes are very material. SOR has the expertise and the relationships in the country and is one of relatively few foreign operators. Key Impact Plays / Black Gold Wealth Creation: ƒ LLANOS BASIN - Solana entered into a 5 well agreement with a local private drilling company where the private company pays 60% of the first exploration well to earn a 30% commercial interest in the respective blocks. With Bonaire (Guachiria Norte) the well was drilled and is currently awaiting testing. A suitable service rig should be onsite by the end of May/06. Yalea (Guarchiria) and Gaviotas (SOR pays 0% for 50% WI) will be at TD by the end of May/06. The targets in the Llanos basin are in the 3MB to 10MB target range and have highly permeable, high porosity reservoirs that are characterized by high productivity with rates of 1,000 boe/d/well possible. The Bucaro well which was previously producing >500 boe/d has since encountered problems and watered out to non-commercial levels. ƒ PUTUMAYO BASIN - The Puma prospect was drilled Q4/05 and is currently awaiting a suitable service rig for testing. SOR will have 18.75% net revenue interest. The prize could be 100MB with three zones warranting testing. At Guayuyaco 1 and 2, SOR has a 35% net interest and these wells are now contributing 450 b/d net to SOR. Solana’s lowest risk prospect is Juanambu which may be drilled with a private drilling company’s rig in Oct/06. ƒ CATATUMBO BASIN – Adjacent to the world class Maracaibo Basin in Venezuela the Catatumbo Basin has a proven petroleum system with the potential for elephant discoveries. Conversely, this area also holds the greatest non-geologic risk to SOR being the home to the last vestiges of the rebel group FARC. The Alamo prospect, a 4,800 foot test should spud mid-July following the drilling of Gaviotas with a heli-portable rig. SOR will pay 38.4% of the cost of the initial well and 30% of the cost of follow-up wells to earn a 26.25% revenue. The target is in the order of 100MB (Well cost to SOR US$5M). An exploratory success could be worth over $6/share to SOR on an unrisked NAV basis. The Versalles prospect is a 100 MB target with previous oil shows. SOR will have an 85% WI in the shallow (5,000 ft), lower risk well with potential of 500 to 1,000 b/d/well in productivity. A Dec/06 or early 2007 spud is anticipated with an easily sourced 750 – 1,000 hp rig capable of the drill. ƒ MAGDALENA BASIN - The highest impact well for SOR is Zeus in the Middle Magdalena Basin. This well should spud in Nov/2006 and go to a depth of 18,000 feet. The well may take 150 days to drill and then 40 days to test if successful. The gross cost of this well is US$21M and to complete US$25M. ADE will pay 48% or approximately US$12M to earn 33.75% if the well is completed. The prize is a target which could be in the order of 400MB. An exploratory success could be worth over $10/share to Solana on an unrisked NAV basis. The recent success at Guariquies in the Upper Magdalena Basin saw 80 ft of oil pay in the Mugrosa formation (29.50 API oil) in addition to 150 ft of oil pay in the LaPaz (320 API oil, extremely low permeability). The second well testing the Mugrosa formation was drilled under budget ($2M) and is currently being completed. A third well with a 4.5km offset from the first discovery targeting both the Mugrosa and LaPaz is expected to spud late 2006 contingent on rigs. Ultimately, it is expected that the Guariquies discovery will be developed with >20 producing wells with ultimate recoverable reserves >100MB with ~production per well of 450 b/d. Recent Operational & Financial Results: ƒ In Apr/06 SOR completed a PP financing with 21M common shares issued at $2.00/share for gross proceeds of $42M . ƒ SOR potentially will drill ~10 wells over the next 12 months. Capex in 2005 was $33.7M. Well costs for the most part are in the $2-3M range except for the difficult terrain in Central Colombia which can raise the cost to a significant $10M/well; thus for these wells, partners will need to be brought in. ƒ Production is now at ~450 b/d and the company expects production to reach 1,000 b/d by year end with minimal exploration success. ƒ Our 12-month target of $5.00 is based on the increase in asset value that could arise if they have a 30% success rate on the current round of drilling. Balance of Evidence Growth Drivers Limits to Growth ƒ Solana has a mix of low-risk to high impact prospects ƒ Access to drilling and service rigs in Colombia is in Colombia that should be drilled in the next year. difficult and has delayed SOR’s program in the past. ƒ Colombia has put together very attractive new fiscal ƒ Colombia’s government has been successful in regime that SOR will be taking advantage of. restraining terrorism but significant risk does still ƒ SOR is fully funded with $63M in cash, or exist. $0.71/share. Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Sterling Resources Ltd. SLG $2.42 Outperform Potential Upside 107% Target Price $5.00

2005 2006 2007 ActualEstimate Estimate Production EXPLORATION POTENTIAL Reporting Periods Oil & Liquids b/d - 125 3,000 Year-end: December Natural Gas mmcf/d - - 1.8 Next Report Q2 Aug/17/06 Total 6:1 - 125 3,300 Shares O/S Volume Growth n/a n/a 2540% Basic: 80.1M Per million shares n/a 1.5 39.1 Fully diluted: 84.4M Gross Wells Drilled 3715Financial Data Volumes Mix % Market Cap $M: $194M Oil & Liquidsn/a 100% 91% Enterprise Value $M: $194M Natural Gasn/a 0% 9% Enterprise Value per Financials 2006 exit production $: $258,667 Cash Flow/Share - $0.02 $0.61 Reserve Life Index (years) Price/Cash Flow - 121.0x 4.0x Proven: n/a Capital Exp $5.5M $30M $75M Established: n/a Cash Flow - $2M $51M Net Asset Value @ 10% BT CapEx/Cash Flow - 15x 1.5x n/a Debt Commodity Prices Debt Line: None (SAMI forecasts) Actual Estimate Estimate Debt Utilized: None US$ Brent $54.52 $54.00 $54.00 Insider Ownership 14% C$ AECO$8.90 $9.00 $9.00 Chairman:Robert Welty 2.3M CEO:Stewart Gibson 770K Quarterly Results Sprott Asset Mgmt. 8.1M Production (b/d) Cash Flow per Share Strategic Capital 8.0M 2005E 2006E 2007E 2005E 2006E 2007EMeridian Capital 8.7M Q1 0 0 1,400e 0.00 0.00 0.06e Service Providers Q2 0 0 1,850e 0.00 0.00e 0.08e Bankers: RBC/Bank of Scotland Q3 0 0 2,300e 0.00 0.00e 0.10e Auditors: Ernst & Young LLP Q4 0 500e 7,700e 0.00 0.02e 0.37e Engineers: RPS Troy Ikoda & GLJ Exit 0 750e 8,000e

The analyst(s) and/or immediate member(s) of their family own shares in this company Sterling Resources Ltd. Suite 1450, 736-6th Ave SW Calgary AB T2P 3T7 Tel 403 237-9256 Fax 403 215-9279 Website: www.sterling-resources.com Company History & Management Info: ƒ Sterling was created in 1998 by Robert Welty and associates to explore internationally for oil and natural gas. Bob was formerly CEO of Asamera and Bow Valley Energy. He teamed up with Stewart Gibson in 1999. Stewart is a geological engineer who previously worked for Bow Valley Energy UK, BP and Oxy. ƒ Management: Robert Welty – Chairman Stewart Gibson-Pres. & CEO Ian Hornby-Smith – CFO John Rapach – V.P.Op (UK) Sherry Cremer- Treasurer and Corp. Secretary David Findlater – VP Exploration (UK) Core Areas: ƒ Sterling has a focus on two core areas: the United Kingdom (North Sea and onshore) and Romania (onshore and offshore). In the UK they hold 1.2M gross acres, in Romania 2.6M gross (60% interest and the operator). Key Impact Plays / Black Gold Wealth Creation: ƒ United Kingdom: Sterling entered the UK North Sea taking advantage of the new license Promote Regime which was created to help smaller companies explore. SLG has interests in 17 blocks with 629k net acres and has 3D on much of the lands. On block 21-23a in the Central North Sea Sterling drilled the “Disraeli” prospect (35% WI) Q2/06 encountering approximately 90ft gross of oil column. An appraisal work program involving 2 deviated wells is planned in Q3/06 with the intention of fast tracking the development of the discovery. The find could potentially contain 30 Mb OIIP with ~50% recovery factor and initial production rates of 5,000 b/d net to SLG. The development most likely will be produced through the adjacent Pict/Saxon and Triton facilities with first oil in Q4/07. Long lead items such as “trees”, pipe etc. have been sourced by the operator Oilexco to speed up the development work. Also on block 21-23a is the “Constance” prospect in the Tay sands which is estimated to contain up to 70MB of 32o-36o oil and may be drilled in 2007. On blocks 210-29 and 210-30, four debris flow structures and another large shallow 4-way closure have been identified on seismic. SLG has a 60% interest in these oil targets with gross oil potential up to 250MB with recovery factors of 35% or 88MB. The depth of the well is expected to be 3,000 m and with a promote, SLG should keep 30-40% of the play. On block 42-13 Sterling sees a 550 Bcf recoverable gas prospect. The first well will be up-dip of a gas discovery by Mobil. SLG has farmed out 25% of the play for 50% of the costs to Grove Energy (soon to be Virgo). The estimated D&C well cost is £9 gross, and ADTI (turn-key drilling project management company, subsidiary of GlobalSantaFe Drilling) has been retained to procure a rig. Alternatively, SLG and partners may farm-out the prospect to a large gas focused E&P with drilling slots in Q2/07. With blocks 42/19, 20 and 24 SLG has a 150 Bcf recoverable prospect in the shallow Bunter sandstone with deeper prospects in the Carboniferous and Rotliegendes formations. Sterling is also looking at bidding for more parcels at the 24th license round in June/06. The UK Onshore; in the Wessex Basin the Waddock Cross-3 well tested high water cuts and lab work is being done to assess recoverability of high viscosity oil (18.75% WI). In the Cleveland Basin the Kirkleatham-4 well tested at 5 mmcf/d (47% WI) and may either be used to generate sales electricity or be sold directly to an industrial complex. First production may be on-stream by late Q4/06, and further development drilling (2 wells) is expected in early 2007. ƒ Romania: Onshore: Sterling has a 1.5M acre land holding in the South Craiova Concession. The partner is Grove Energy Ltd. SLG maintains a 60% WI and operatorship in the concession. Sterling has a firm 2 well and 2 optional well program with first spud early July/06. The wells are expected to take 30 to 45 days. The first target “Boar” has multi-zone upside with 53Mb, 9Mb and 44Mb targets (OOIP with estimated 30% recovery factors) in the Dogger, Upper Triassic and Middle Triassic respectively. The second drill will be at “Flounder” which is also prospective in several zones. The U. Triassic, M. Triassic and Paleozoic (3,500 m) are estimated to have 13Mb, 16Mb and 26Mb respectively. As the first wells are being drilled SLG plans to shoot additional seismic over the other prospects and leads before determining which to drill. With “Wolf” there is 34Mb potential in the U. Triassic. The “Goshawk” and “Swallow” leads also have tremendous potential with >200Mb targets but at this time do not have enough seismic to warrant drilling. A successful well may have production rates of 1,000 b/d which would be trucked to the nearest terminal (40 km away) and result in an aggressive development program. Offshore Romania: Sterling has a 20% interest in a 1.1M acre block with a 200 Mb prospect. Talisman, the operator may drill a well when pipeline access and rig availability issues are resolved. Recent Operational & Financial Results: ƒ Sterling will have $18M in cash following the first phase of appraisal work at Disraeli (currently $21M). ƒ SLG has added John Rapach (UK N.Sea experience with Conoco and Helix RDS) as VP Ops (UK). Ian Hornby-Smith has been added to fill the CFO position. SLG is also in the process of building an operations team in Romania having added a geologist with international experience to head up local professionals. ƒ In Feb/05, Sterling completed a private placement on 30M shares at 90 cents, raising $27M. ƒ Our 12-month stock price target of $5 assumes modest success in Romania and successful development of Disraeli in 2007. By Q4/07 we anticipate SLG to be doing $1.48/share in annualized cash flow. Balance of Evidence Growth Drivers Limits to Growth ƒ Sterling is exposed to high-impact upside from ƒ Access to offshore drilling rigs may prove difficult and exploration drilling which could increase NAV expensive in the UK North Sea and could delay the significantly if successful. Additionally, SLG should exploration of SLG’ s land holdings. see material production and cash flow growth as ƒ Shortage of pipelining ships and a narrow work Disraeli is brought on production in 2007. window may slow Disraeli development.

Page 2 Josef I. Schachter, CFA, CMA (403) 264-4413

[email protected] Maison Brenda Asplund, B.A. (403) 264-5777 [email protected]

Placements Jason White, B.Sc., E.I.T. (403) 451-9287 Canada [email protected] June 2, 2006 Vero Energy Inc. VRO $6.20 Outperform Potential Upside 48% Target Price $9.20

2005 2006 2007 Actual Estimate Estimate Production Reporting Periods Oil & Liquids b/d 349 780 1,245 Year-end: December 31st Natural Gas mmcf/d 3.810.9 17.4 Next Report Q2 Aug/15/06 Total 6:1 9802,600 4,150 Shares O/S Volume Growth n/a 165% 60% Basic: 25.9 Per million shares n/a94.2 150.4 Fully diluted: 27.6 Gross Wells Drilled 64540 Financial Data Volumes Mix % Market Cap $M: $161M Oil & Liquids36%30% 30% Enterprise Value $M: $186M Natural Gas64% 70% 70% Enterprise Value per Financials 2006 exit production $: $50,270 Cash Flow/Share $0.20$1.11 $1.75 Reserve Life Index (years) Mar-06 Price/Cash Flow n/a5.3x 3.3x Proven: 5.0 Net Capital Exp $35.0M$109M $50M P+P 7.5 Cash Flow $1.9M$30M $48M Net Asset Value @ 10% BT CapEx/Cash Flow18.4x3.6x 1.0x Mar-06 Est. $5.24 Debt Mar 2006 Commodity Prices Debt Line: $30M (SAMI forecasts) Actual Estimate Estimate Bank Debt Utilized: $25M US$ WTI $56.70 $54.00 $54.00 Insider Ownership 11% C$ AECO $8.90$9.00 $9.00 CEO&Pres. Doug Bartole 586k VP Exp: Kevin Yakiwchuk 254k Quarterly Results CFO: Gerald Gilewicz 191k Production (b/d) Cash Flow per Share Chairman: Paul Baay 529k 2005 2006E 2007E 2005 2006E 2007EDirector: Clinton Broughton 323k Q1 n/a 1,427 3,600 n/a 0.20 0.38e Service Providers Q2 n/a 2,400e 4,000e n/a 0.23e 0.42e Bankers: CIBC Q3 n/a 3,100e 4,300e n/a 0.31e 0.45e Auditors: PriceWaterhouseCoopers Q4 980 3,500e 4,700e 0.20 0.37e 0.50e Engineers: GLJ Exit 1250e 3,700e 5,000e

The analyst(s) and/or immediate member(s) of their family own shares in this company Vero Energy Inc. 1750, 530-8th Ave. SW Calgary, AB T2P 3S8 Phone 403 218-2063, Fax 403 218-2064 Website: www.veroenergy.ca

Company History & Management Info: ƒ Vero Energy Inc. (VRO) was incorporated September 2005. Through a plan of arrangement with True Energy Inc. and TKE Energy Trust which closed Nov 2005, Vero acquired land and producing oil and gas properties from True Energy Trust for the purchase price of $27.9M. VRO has acquiring Ledge Resources in a deal valued at $69M that closed February 24/06. ƒ Management: CEO–Doug Bartole CFO–Gerald Gilewicz VP Exploration–Kevin Yakiwchuk VP Land – Robert Bachynski VP Ops – Shane Manchester Core Areas: ƒ Vero has an average 70% WI with >76k net undeveloped acres in the prospective W5 areas of Edson, Whitecourt, Wilson Creek, Corbett and Ricinus. These areas are primarily year round access and contain multi-zone potential. Key Impact Plays / Black Gold Wealth Creation: ƒ With the core area of Edson, VRO has 11k net undeveloped acres with an average WI of 66% and current net production of ~1,100 boe/d. This area has stacked multiple targets including the Cardium, Viking, Ellerslie and Rock Creek (1,500m - 2,800m). The Ellerslie is capable of 0.5 – 2 mmcf/d (typical well producing at 1 mmcf/d). VRO WI wells in the Ellerslie have pay zones up to 10m thick. The other high impact play is in the Rock Creek with typically 5 – 6m of pay and is exploited via either vertical or horizontal wells. Vertical Rock Creek wells typically produce 700 mcf/d after 3 months and horizontals approximately 1.5 – 2 mmcf/d after 3 months. The typical cost (D&C) is $1.5M and $2.5M respectively. Facilities and infrastructure should not be an issue as VRO should be able to utilize a Suncor facility and access a nearby Nova transmission line. Wild card upside exists in the Blue Ridge, with adjacent lands with wells producing anywhere from 0.9 – 4 mmcf/d (sour) and 65 Bcf in reserves. VRO has up to 40 locations identified with Rock Creek down spacing to 2 wells per section on all lands with Rock Creek rights. In 2006, 13 wells are planned are in the area (3 of which are Rock Creek horizontals). Vero will have a rig dedicated to this property once road bans are removed. ƒ At Whitecourt Vero has 30k net undeveloped acres with an average WI of 80%. The multiple stacked sand targets range from shallow gas (Edmonton Sands at 500m) and Mannville to the deeper Nordegg and Pekisko (1,700m). The furthest NW land block of Virginia Hills is winter access only while the rest has year round access. Typical Edmonton Sands wells IP at 0.5 mmcf/d. Reserve potential is 0.5 -1 Bcf/well and costs are $300k D&C. Facilities access should not be an issue and there is large farm-in potential as most of the regional competitors are income trusts. Production out of this area is ~300 boe/d ƒ With the acquisition of Ledge Resources at Wilson Creek VRO is producing 500 boe/d of 420 oil from a Belly River oil pool (1,250m with 65% WI) estimated to have 5.3 MB OOIP. Following the implementation of a water-flood in late 2006/early 2007 GPP is expected to be granted adding 300 boe/d of rate restricted production. The planned water-flood is expected to increase the recovery factor from 15% to 40%, potentially adding 1.3 MB in recoverable reserves. Further upside exists in the Rock Creek (2,100 m with 50% WI) with production capability of >1 mmcf/d. ƒ The core area of Corbett has ~17k acres of net undeveloped land with an average WI of 58%. Locations identified target the Belly River (500m) down to the Nordegg (1,150m) with typical wells costing $250k D&C in the Belly River. Drilling resulted in 2 D&A and one successful Nordegg discovery Q4/04. The Nordegg discovery is capable of 80 b/d of 320 API oil but is currently restricted to <20 b/d. GPP has been granted but will not be implemented until the associated gas is tied in. A facility will be built 2H 2006 to handle the solution gas and potential gas cap. ƒ With Ledge Resource’s Ricinus lands, VRO has exposure to high impact exploration in the Beaverhill Lake and Leduc formations (100% WI). The Beaverhill Lake is at a depth 4,700m and wells in the area have been capable of 12 mmcf/d with 8 Bcf of reserves. With the Leduc play (5,100 m) Vero has land on the up-dip edge of the same trend as Shell’s Tay River discovery which is producing at 95 mmcf/d of 35% sour natural gas. The anticipated cost of a well to the Leduc is $8M. We anticipate VRO to evaluate seismic on both of these plays in summer 2006 and farm-out the prospects with drills in early 2007. ƒ At Garrington Vero has a shallow gas play with potential 4 wells/section down spacing targeting Edmonton sands which could result in 15 wells over time. A typical Edm sands well can be produced at 250 mcf/d and exhibits long life and low draw downs. Recent Operational & Financial Results: ƒ Current VRO production is estimated to be 2,400 boe/d, with >900 boe/d behind pipe. ƒ In Q1/06 VRO drilled 8 wells with a 100% success rate. These drills resulted in three new pool discoveries. ƒ In Feb/06 VRO acquired Ledge Resources in a deal valued at $69M. Vero is paying $18.25M in cash, assuming $18M in debt and issuing 4.75M shares. The deal added ~900 boe/d with 300 boe/d behind pipe, 9k undeveloped acres and 2.5 MB in P+P reserves. ƒ In Apr/06 VRO closed a PP financing where 2.1M common shares were issued at $6.10/share for proceeds of $13M. ƒ Cash flow netbacks were modeled at $28/Boe, $30/boe and $32/boe for Q2/06, Q3/06 and Q4/06 forward respectively to account for near term weakness in natural gas prices which are below our long term commodity call of $9 for NYMEX. Q1/06 Cash flow netbacks were $32/boe. ƒ Our 12-month stock price target of $9.20 is based on the proven RLI (5x) our annualized Q2/07 cash flow estimate of $1.68 plus a small premium for the excellent land position and high impact potential at Ricinus. Balance of Evidence Growth Drivers Limits to Growth ƒ Anticipated large production and reserves additions through 2006. ▪ Tight market for rigs and services dominated by the ƒ Management team with a record of success in the targeted areas. large cap E&Ps may slow down VRO’s 2006 program. ƒ Portfolio of high impact projects down to low risk development. ▪ Increased competition for lands, people and services.

Maison Junior & Intermediate Energy Producers Placements Recommended Buy List Canada June 2, 2006

APPRECIATION % RECOMMENDATION June 2/06 TSX Company Sym Stock Price Target Present On the Capitalization Price Increase Date Energy $ Price* Price Week $M $ fr. Rec $ Index Accrete Energy GZ 7.44 13.00 75% 3% 124.2 2.35 217% Aug13/04 171.43 Bow Valley Energy BVX 6.50 8.16 26% 0% 479.7 1.50 333% Jul 25/03 133.98 C1 Energy CTT 2.10 3.36 60% 5% 73.5 2.75 -24% Aug 26/05 300.34 Centurion Energy CUX 7.49 15.00 100% 2% 716.8 0.66 1035% Dec 18/02 124.46 Defiant Resources DFR 3.40 5.20 53% 0% 76.2 3.80 -11% Feb 10/06 332.14 Delphi Energy Corp. DEE 4.97 8.00 61% 8% 295.2 4.87 2% Mar 24/06 351.26 Find Energy FE 10.55 15.50 47% 3% 410.4 2.50 322% Dec 24/03 154.04 Galleon Energy GO.A 32.74 41.50 27% 6% 1234.3 7.75 322% May 3/04 167.67 Gentry Resources GNY 5.30 7.20 36% -1% 223.1 1.34 296% Dec 16/02 126.79 Geocan Energy GCA 1.85 3.40 84% 1% 116.7 1.80 3% Nov 4/05 306.41 International Frontier IFR-V 1.59 3.00 89% 4% 72.0 1.50 6% Mar 15/06 345.94 Niko Resources NKO 66.48 80.00 20% 2% 2672.5 23.80 179% Mar 31/03 124.90 Oilexco Inc. OIL 5.37 7.50 40% 9% 1143.8 4.04 33% Sep 30/05 332.10 Real Resources RER 23.66 37.80 60% -2% 941.7 4.75 398% Dec 2/02 117.32 Solana Resources SOR 1.83 5.00 173% -1% 164.0 1.27 44% Jul 20/05 274.95 Sterling Resources SLG-V 2.42 5.00 107% -2% 204.2 0.80 203% Dec 22/04 198.99 Vero Energy VRO 6.20 9.20 48% 1% 171.1 5.71 9% Feb 10/06 331.47

TSX Energy Index 352.31 WTI 72.65 Nymex 6.68 AECO (C$/GJ) 5.64 AECO (C$/mcf)** 6.04

* Our stock price targets are based upon the Proven Reserve Life Index times our future cash flow expectations. ** Based on approximate conversion of 1.0704 GJ heat value = 1mcf NatGas Research Coverage List Maison Placements Legend: O Out perform M Market perform Canada U Under perform

Stock 12-M M Shares Production Mix Target Appreciation Opinion $M Market Debt Enterprise % Insider Symbol Price $ O/S 2006 Price $ Companies Covered June 2/06 Potential % *Basic Capitalization $M Value $M Gas % Oil % $ NAV Ownership * The Explorers Centurion Energy Int'l Inc. CUX-T 7.49 15.00 100% O 88.9 665.9 81.0 746.9 85% 15% 5.58 22% Galleon Energy GO.A-T 32.74 41.50 27% O 34.7 1136.1 60.0 1196.1 60% 40% 20.01 11% International Frontier Res. IFR-V 1.59 3.00 89% O 41.8 66.5 0.0 66.5 0% 100% n/a 11% Niko Resources Ltd. NKO-T 66.48 80.00 20% M 38.3 2546.2 34.0 2580.2 98% 2% 25.93 18% Oilexco Inc. OIL-T 5.37 7.50 40% O 195.0 1047.2 111.0 1158.2 0% 100% 4.57 11% Solana Resources Ltd. SOR-V 1.83 5.00 173% O 85.7 156.8 0.0 156.8 0% 100% n/a 12% Sterling Resources Ltd. SLG-V 2.42 5.00 107% O 80.1 193.8 0.0 193.8 0% 100% n/a 14% Growth At Reasonable Price Accrete Energy GZ-T 7.44 13.00 75% O 15.2 113.1 25.0 138.1 70% 30% 8.05 31% Bow Valley Energy Ltd. BVX-T 6.50 8.16 26% O 69.2 449.8 17.0 466.8 75% 25% 4.11 21% C1 Energy Ltd. CTT-T 2.10 3.36 60% O 33.0 69.3 8.0 77.3 65% 35% 2.63 8% Delphi Energy Corp. DEE-T 4.97 8.00 61% O 55.4 275.3 62.0 337.3 85% 15% 3.79 7% Gentry Resources Ltd. GNY-T 5.30 7.20 36% O 38.6 204.6 43.0 247.6 65% 35% 5.54 10% Real Resources Inc. RER-T 23.66 37.80 60% O 37.3 882.5 82.0 964.5 50% 50% 17.26 10% Vero Energy Inc. VRO-T 6.20 9.20 48% O 25.9 160.6 25.0 185.6 70% 30% 5.24 11% Value Defiant Resources Corp. DFR-T 3.40 5.20 53% O 18.0 61.2 6.0 67.2 70% 30% 3.85 35% Find Energy Ltd. FE-T 10.55 15.50 47% O 35.4 373.5 54.0 427.5 75% 25% 8.30 5% Geocan Energy Inc. GCA-T 1.85 3.40 84% O 54.5 100.8 30.0 130.8 34% 66% 2.38 9%

* Our stock price targets are based upon the Proven Reserve Life Index times our future cash flow expectations Commodity Price Assumptions

Research Coverage List 2004A 2005A 2006E WTI $41.40 $56.70 $54.00 AECO Nat.Gas $6.60 $8.90 $9.00

% Production Enterprise $ Cash Capex/Cash Flow Symbol Production 6:1 Cash Flow Multiple P $M Cash Flow $M Cap Ex Growth Value/2006 Flow/Share reinvestment rate

2004A 2005 2006E 2005 2006E Production 2005 2006E 2004 2005 2006E RLI 2005 2006E 2005E 2006E 2005E 2006E $ 2005

CUX-T 11475 22863 32860 99% 44% 22,729 0.75 1.01 13.9 10.0 7.4 6.1 66.0 92.0 165.0 160.0 2.5 1.7 GO.A-T 1581 6539 10700 314% 64% 111,783 2.57 3.17 61.8 12.7 10.3 6.2 78.0 118.0 210.0 200.0 2.7 1.7 IFR-V n/a n/a 45 n/a n/a n/a n/a n/a n/a n/a n/a 14.0 n/a n/a 85.0 16.0 n/a n/a NKO-T 10303 13900 22700 35% 63% 113,664 1.93 3.22 27.8 34.4 20.6 14.3 75.0 130.0 140.0 140.0 1.9 1.1 OIL-T 143 262 6190 83% 2263% 187,100 -0.02 0.52 n/a n/a 10.3 n/a 0.0 111.0 90.0 288.0 n/a 2.6 SOR-V n/a 265 590 n/a 123% 265,815 0.05 0.10 n/a 36.6 18.3 n/a 4.0 9.0 34.0 50.0 8.5 5.6 SLG-V n/a 0 125 n/a n/a 256,000 0 2.00 n/a n/a 1.2 n/a 1.2 2.0 5.5 30.0 4.6 15.0

GZ-T 190 1276 2780 n/a 118% 49,672 0.90 1.82 n/a 8.3 4.1 7.2 14.0 30.0 49.0 35.0 3.5 1.2 BVX-T 2643 3227 2875 22% -11% 162,365 0.49 0.43 28.3 13.3 15.1 6.8 32.0 32.0 40.0 100.0 1.3 3.1 CTT-T 501 627 1180 25% 88% 65,508 0.21 0.29 11.1 10.0 7.2 8.1 6.0 10.0 28.0 17.0 4.7 1.7 DEE-T 1706 4221 6675 147% 58% 50,538 0.80 1.19 11.0 6.2 4.2 5.0 40.0 71.0 112.0 125.0 2.8 1.8 GNY-T 2121 3280 4475 55% 36% 75,482 0.91 1.11 12.6 5.8 4.8 4.2 35.0 46.0 54.0 43.0 1.5 0.9 RER-T 7373 10394 13675 41% 32% 70,531 3.92 3.67 11.3 6.0 6.4 6.2 133.0 144.0 269.0 250.0 2.0 1.7 VRO-T n/a 980 2600 n/a 165% 71,377 0.20 1.17 n/a n/a 5.3 5.0 2.0 29.0 35.0 109.0 17.5 3.8

DFR-T n/a 316 1100 n/a 248% 61,091 0.28 0.51 n/a 12.1 6.7 6.3 4.0 11.0 33.0 35.0 8.3 3.2 FE-T 2338 3246 5560 39% 71% 76,883 1.11 1.61 18.8 9.5 6.6 5.5 38.0 61.0 68.0 110.0 1.8 1.8 GCA-T 1465 2188 3860 49% 76% 33,892 0.40 0.53 4.6 4.6 3.5 5.1 13.0 33.0 68.0 35.0 5.2 1.1 Analyst Disclosure

Company Name Trading Symbol *Exchange Disclosure code Accrete Energy Inc. GZ T 1 Bow Valley Energy BVX T 5 C1 Energy CTT T 1 Delphi Energy Corp. DEE T 1 Find Energy FE T 1,5 International Frontier Resources IFR V 1 Niko Resources NKO T 5

Oilexco Inc. OIL T 1,5

Real Resources RER T 1,5

Solana Resources SOR V 1,5

Sterling Resources SLG V 1 Vero Energy VRO T 1

Disclosure Key: 1=The Analyst, Associate or member of their household owns the securities of the subject issuer. 2=Maison Placements Canada Inc. and/or affiliated companies beneficially own more than 1% of any class of common equity of the issuers. 3= who is an officer or director of Maison Placements Canada Inc. or it’s affiliated companies serves as a director or advisory Board Member of the issuer. 4=In the previous 12 months a Maison Placements Canada Inc Analyst received compensation from the subject company. 5=Maison Placements Canada Inc. has managed co-managed or participated in an offering of securities by the issuer in the past 12 months. 6=Maison Placements Canada Inc. has received compensation for investment banking and related services from the issuer in the past 12 months. T-Toronto; V-TSX Venture; NQ-NASDAQ; NY-New York Stock Exchange

Disclosures Rating Structure Analysts at Maison Placements Canada Inc use two main rating structures: a performance rating and a number rating system. Performance Rating: Out perform: The target price is more than 25% over the most recent closing price. Market Perform: The target price is more than 15% but less than 25% of the most recent closing price. Under Perform: The target price is less than 15% over the most recent closing price. Number Rating: Our number rating system is a range from 1 to 5. (1=Strong Sell; 2=Sell; 3=Hold; 4=Buy; 5=Strong Buy) With 5 considered among the best performers among its peers and 1 is the worst performing stock lagging its peer group. A 3 would be market perform in line with the TSX market. NR is no rating given that the company is either in registration or we do not have an opinion. Analyst’s Certification: As to each company covered in this report, each analyst certifies that the views expressed accurately reflect the analyst’s personal views about the subject securities or issuers. Each analyst has not, and will not receive, directly or indirectly compensation in exchange for expressing specific recommendations in this report. Analyst’s Compensation: The compensation of the analyst who prepared this research report is based upon in part; the overall revenues and profitability of Maison Placements Canada Inc. Analysts are compensated on a salary and bonus system. Some factors affecting compensation including the productivity and quality of research, support to institutional, investment bankers, net revenues to the equity and investment banking revenue as well as compensation levels for analysts at competing brokerage dealers. Analyst Stock Holdings: Equity research analysts and members of their households are permitted to invest in securities covered by them. No Maison Placements Canada Inc analyst, or employee is permitted to affect a trade in the security of an issuer whereby there is an outstanding recommendation for a period of thirty calendar days before and five calendar days after the issuance of the research report. Dissemination of Research: Maison Placements Canada Inc disseminates its hard copy research material to their clients using the postage service and couriers. Samples of our research material are available on our web site. Electronic formats are available upon request. General Disclosures: This report is approved by Maison Placements Canada Inc. (“Maison”) which is a Canadian investment- dealer and a member of the Toronto Stock Exchange and regulated by the Investment Dealers Association. The information contained in this report has been compiled by Maison from sources believed to be reliable, but no representation or warranty, express or implied, is made by Maison, its affiliates or any other person as to its accuracy, completeness or correctness. All estimates, opinions and other information contained in this report constitute Maison’s judgment as of the date of this report, are subject not change without notice and are provided in good faith but without legal responsibility or liability. Maison and its affiliates may have an investment banking or other relationship with the company that is the subject of this report and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, Maison or their affiliates may at any time have a long or short position in any such securities, related securities or in options, futures, or other derivative instruments based thereon. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the securities discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objective, financial situation or particular needs of any particular person. Investors should obtain advice on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, neither Maison Placements Canada Inc, its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of the information contained in this report.

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