Secure Retirement :: Radio Team 1260 :: Edmonton Investment Planner 10-02-10 10:21 AM

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The following is an excerpt from February Until oil finds a base, have some cash &
Newsletter Registration “cherry pick” the price you want in the
2, 2010 courtesy of one of the most stock/company(s) you like in what could be
respected names in the junior sector, fellow a choppy period.
Name Canaccord Investment Advisor and editor
of the “Stocktalk - Late Edition” newsletter, February 5, 2010: TAG OIL (V-TAO)
Email David Pescod.
If you would like to subscribe to this highly
Phone regarded, daily newsletter, Dave has been It’s probably the scariest story we can find out
kind enough to extend an invite to do so by there…we’re scared to be in it and we’re scared to be
simply emailing me to add you to our outside missing it. We hate the time frame. Their
Address distribution list. unconventional oil play in New Zealand won’t be
City drilled until this coming fall which is eons away, but
The chart shows just how beaten up Ithaca Energy,
what a set-up for the company at this time with
along with many of the other North Sea oil and gas unbelievable leverage…only 30 million shares out with
Province
players got hit when it looked like the world was
management owning 11 million and ten million dollars
Postal ending in the financial crisis in the last year. Most of
in the bank. Should this play work…
Code the North Sea players survived, but some like Oilexco
went into bankruptcy as we all remember.
TAG OIL (V-TAO) $3.20 +0.10
How did you find us?
The best description on this play so far was put
Team 1260 ITHACA ENERGY (V-IAE) $1.48 +0.04 out by Keith Schaefer of The Oil and Gas
Radio Investments Bulletin. But sometime next week we
Website hope to have an interview with the fellow who
Ithaca didn’t go without getting absolutely
got us into Ultra Petroleum, seven or eight years
clobbered though as it hit almost ten cents on
Other ago, when it’s unconventional gas play in
the dollar from where it had previously been.
subscribers Wyoming started becoming one of the stories of
Now that the world seems to be going back to
the day. Who would have ever thought it was a
Word of mouth more normal times, Ithaca, like many of the other 100-bagger. Hopefully it will run next Wednesday
players in the North Sea seem to be enjoying
Reset Send or Thursday.
much better times.
Yesterday, Ithaca announced some new
resource/reserve numbers and suddenly the
analysts are responding with higher target prices.
Investing in these companies may not
Russell T. Dratwa, CFP One of the most bullish on the story is Octagon’s
be suitable for all investors as there are
Warren Verbonac. He writes, “Proved reserves always unique characteristics & risks for
Investment Advisor have more than doubled since the Dyas each company that can include illiquidity,
transaction, and Probable reserves are up 2.7 xs.
Russ is the "Voice of Edmonton entry level price, insider buying/selling and
On a year-over-year basis, Proved reserves are commodity prices. Call me at 780-408-
Business" on up 10% to 16 million barrels equivalent, Probable
TEAM 1260 AM Radio 1516 or at 1-877-313-3035 ext 1516.
reserves increased 49% to 21 million barrels
Monday-Friday 6, 7, 8, and 9 am equivalent, and Possible reserves are up by 60%
to 42 million barrels equivalent.”
Sometimes when you write Possible reserves,
that’s the equivalent of “hoped for” and “dreamed
of”. But still you have significant agencies doing
this kind of work.
Verbonac continues, “The present value of the
37.2 million barrels equivalent of the Proven and
Probable reserves, discounted at 10%, is
US$768.4 million or $5.00 per share; we estimate
click here to listen to an interview that cash in the Company could be worth another Market Updates
with Russ and learn more about his $0.30 per share, for an approximate asset value
business of $5.30 per share.”
Verbonac continues to get excited, writing,
If you are a CEO, CFO, President or “Adding in Possible reserves brings total
Director of a successful Alberta or reserves to 79.2 million barrels, with a
Western Canadian company contact Russ present value of US$1.8 billion or $11.45
today to discuss promoting your per share; $11.75 after including an
estimate for cash.”
company on his radio features on Team
Is one getting carried away here? Click to review the latest
1260.

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Secure Retirement :: Radio Team 1260 :: Edmonton Investment Planner 10-02-10 10:21 AM

1260. There are other analysts following this story; market updates
Fraser Mackenzie with a target of $2.50, but I
Phone: 780-408-1516 suspect others are going to start taking a look at www.canaccord.com
this story and if these numbers are anywhere
Russell Dratwa
correct, we just wonder if Ithaca doesn’t become
an obvious takeover candidate.
When we talked to Verbonac the other day, he
reminds us that this is not a third world country
we are talking about and they are located in one
of the best places of the world to be.
He echoes our thoughts that it might become a
very attractive takeover target.

Bottom line, Verbonac in his report for Octagon

email: russell_dratwa@canaccord.com
writes, “Clearly, this is one of the most
undervalued stocks in the sector. Experience has
shown, that over time, stocks will trade to their
Proven and Probable asset value – the “hardest”
valuation metric.”
Currently Verbonac ups his target from $2.00 to
$3.00.

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