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Canada Research | Page 2 of 41 Energy

Raymond James Ltd. | 2200 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Company Ticker Ticker Current Rating Target Price Total Retur

Primary Secondary Price (6-12 months) To Targe

NAL Energy Corporation NAE-TSX C$13.17 2 C$13.75 14%

Pengrowth Energy Corporation PGF-TSX PGH-NYSE C$12.89 2 C$13.00 7%

Perpetual Energy Inc. PMT-TSX C$4.04 3 C$3.50 -3%

PetroBakken Energy Ltd. PBN-TSX C$21.86 2 C$26.00 24%

Progress Energy Resources Corp. PRQ-TSX C$13.51 3 C$12.50 2%

Vermilion Energy Inc. VET-TSX C$47.32 2 C$50.00 13%

Zargon Oil & Gas Ltd. ZAR-TSX C$20.96 3 C$21.50 9%

Junior Oil & Gas ProducersCequence Energy Inc. CQE-TSX C$3.01 2 C$3.25 16%

Cinch Energy Corp. CNH-TSX C$1.03 2 C$1.30 21%

Compass Petroleum Ltd. CPO-TSXV C$1.75 2 C$2.00 23%

Crocotta Energy Inc. CTA-TSX C$2.42 R R R

Ember Resources Inc. EBR-TSX C$0.56 UR UR

Insignia Energy Ltd. ISN-TSX C$1.95 2 C$2.25 25%

Novus Energy Inc. NVS-TSXV C$1.29 2 C$1.50 16%

NuLoch Resources Inc. NLR-TSXV C$2.26 3 C$2.50 9%

Open Range Energy Corp. ONR-TSX C$2.64 2 C$3.25 35%

Orleans Energy Ltd. OEX-TSX C$2.51 3 C$2.75 17%

ProspEx Resources Inc. PSX-TSX C$1.85 UR UR

Reliable Energy Ltd. REL-TSXV C$0.43 1 C$0.60 48%

Renegade Petroleum Ltd. RPL-TSXV C$4.69 2 C$5.75 22%

Twin Butte Energy Inc. TBE-TSX C$2.79 2 C$3.00 4 8%

WestFire Energy Ltd. WFE-TSX C$8.33 1 C$10.50 38%

International Oil & GasAlange Energy Corp. ALE-TSXV C$0.30 R R R

Bankers Petroleum BNK-TSX C$8.68 1 C$20.00 130%

Cirrus Energy Corp. CYR-TSXV C$1.12 3 C$1.15 3%

Gran Tierra Energy GTE-TSX GTE-AMEX C$8.62 1 C$11.50 39%

Greenfields Petroleum Corporation GNF.S-TSXV C$10.00 2 C$13.50 35%

Niko Resources Ltd NKO-TSX C$95.89 4 C$85.00 -11%

Pacific Rubiales Energy PRE-TSX C$32.99 1 C$46.00 41%

Pan Orient Energy POE-TSXV C$6.95 2 C$10.50 51%

Parex Resources Inc. PXT-TSXV C$9.30 2 C$9.50 2%

PetroAmerica Oil Corp. PTA-TSXV C$0.53 2 C$1.10 108%

PetroDorado Energy Ltd. PDQ-TSXV C$0.69 R R R

Petromanas PMI-TSX C$0.42 2 C$1.25 198%

Petrominerales PMG-TSX C$37.71 4 C$25.00 -34%

Petronova Inc. PNA-TSXV C$1.64 2 C$2.50 52%

ShaMaran Petroleum Corp. SNM-TSXV C$1.27 2 C$1.50 18%

Suroco Energy Inc SRN-TSXV C$0.88 2 C$1.25 42%

Talisman Energy Inc. TLM-TSX TLM-NYSE C$23.25 2 C$26.00 13%

WesternZagros Resources WZR-TSXV C$0.57 4 C$0.10 -79%

Oil Sands & Producers

Alter NRG NRG-TSX C$1.40 2 C$3.25 64%

Athabasca Oil Sands Corp. ATH-TSX C$16.68 2 C$18.50 23%

Canadian Oil Sands Limited COS-TSX C$28.99 3 C$28.00 10%

Cenovus Energy CVE-TSX CVE-NYSE C$34.20 2 C$41.00 26%

Connacher Oil and Gas CLL-TSX C$1.39 2 C$1.75 3 2%

OPTI Canada Inc. OPC-TSX C$0.35 3 C$0.75 12%

Petrobank Energy and Resources Ltd. PBG-TSX C$23.80 3 C$29.00 15%

Southern Pacific Resources Corp. STP-TSXV C$1.86 1 C$2.75 67%

Suncor Energy Inc SU-TSX SU-NYSE C$41.97 3 C$43.00 4%

Oil & Gas Energy Services

Black Diamond Group Ltd. BDI-TSX C$23.70 2 C$26.00 13%

Bonnett's Energy Services Trust BT.UN-TSX C$3.09 UR URCalfrac Well Services CFW-TSX C$34.45 2 C$40.00 15%

Canyon Services Group Inc. FRC-TSX C$11.87 1 C$15.00 28%

Ensign Energy Services ESI-TSX C$15.73 3 C$17.00 9%

Essential Energy Services Ltd. ESN-TSX C$2.35 2 C$2.75 17%

GasFrac Energy Services Ltd. GFS-TSXV C$10.75 2 C$12.50 15%

Mullen Group Ltd. MTL-TSX C$19.83 3 C$19.00 0%

Precision Drilling Corporation PD-TSX PDS-NYSE C$10.42 3 C$11.50 9%

Pure Energy Services Ltd. PSV-TSX C$6.80 1 C$10.00 47%

Savanna Energy Services SVY-TSX C$7.43 3 C$7.50 1%

Secure Energy Services Inc. SES-TSX C$5.84 2 C$6.50 13%

Stoneham Drilling Trust SDG.UN-TSX C$16.30 2 C$19.00 16%

Trican Well Service TCW-TSX C$22.97 2 C$28.00 22%


3/41

Energy Canada Research | Page 3 of 41


Company Ticker Ticker Current Rating Target Price Total Retur

Primary Secondary Price (6-12 months) To Targe

Trinidad Drilling Ltd. TDG-TSX C$7.37 2 C$8.50 17%

Western Energy Services Corp. WRG-TSXV C$0.42 3 C$0.40 -4%

Raymond James Ltd.


4/41



Exhibit 1: Weekly Statistics

1 Week 1 Month 1 Year

Oil & Gas Prices 4-Feb 3-Feb % Chg Ago Ago Ago

Crude Oil

Nea r month WTI contra ct (US$/bbl) $89.03 $90.54 -1.7% $89.34 $90.30 $7 3.14

12-month WTI strip (US$/bbl) $96.11 $97.43 -1.4% $95.45 $93.82 $75.95

Canadian par (Cdn$/bbl) $87.00 $87.41 -0.5% $77.00 $81.78 $75.57

Heavy differential * (US$/bbl) $17.05 $21.49 -20.7% $18.90 $14.07

Natural Gas

Near month NYMEX contract (US$/mcf) $4.31 $4.34 -0.6% $4.32 $4.47 $5.42

12-month NYMEX strip (US$/mcf) $4.63 $4.63 -0.1% $4.60 $4.64 $5.84

Near month AECO contract (Cdn$/mcf) $3.82 $3.91 -2.4% $3.79 $4.06 $5.43


FX 4-Feb 3-Feb % Chg Ago Ago Ago

Canadian dollar (US$/Cdn) $1.01 $1.01 0.4% $1.00 $1.00 $0.93


Canadian Equity Indices 4-Feb 3-Feb % Chg Ago Ago Ago

TSX 300 Composite 13,792 13,841 -0.4% 13,438 13,396 11,129

TSX Energy Producers Index 3,570 3,608 -1.1% 3,523 3,465 3,024

TSX Energy Services Index 1,583 1,598 -1.0% 1,541 1,452 1,274

TSX Energy Trust Index 175 174 0.3% 175 171 141

* Source: Cenovus Energy Inc.

Exhibit 2: Upcoming Events

Mon-Feb-7

Sask Land Sale

Wed-Feb-9

AB Land Sale

Thu-Feb-10

OPEC Monthly Oil Market Report

Mon-Feb-21

Family Day

Tue-Feb-22

March WTI Contract Expiry

Thu-Feb-24

March NYMEX Contract Expiry

Mon-Feb-28

EIA Monthly Natural Gas Production Report

EIA Monthly Energy Review

Wed-Mar-9

AB Land Sale

Fri-Mar-11

OPEC Monthly Oil Market Report

Tue-Mar-22 April WTI Contract Expiry

Wed-Mar-23

AB Land Sale

Fri-Feb-25

March NYMEX Contract Expiry


5/41



Exhibit 3: Market Indexes

3.a TSX vs. S&P 500 3.b CAD/USD

3.c TSX vs. TSX Capped Energy 3.d Canadian Energy Sub-indices

3.e TSX E&P Index vs. S&P E&P Index 3.f TSX Energy Service vs. OSX

Sources: Bloomberg, Raymond James Ltd.

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000


TSX

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

S&P

TSX

S&P 500

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000


TSX

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Energy

TSX

TSX Capped Energy

25

50

75

100

125

150

175

200

225

250


Percentage

25

50

75

100

125

150

175

200

225

250

Percentage

E&P

Service

Trust

500

1,000

1,500

2,000

2,500

3,000

3,500


TSX Service

0

50

100

150

200

250

300

OSX

TSX Service

OSX

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500


TSX E&P

400

450

500

550

600

650

700

750

800

850

900

S&P E&P

TSX E&P

S&P E&P


6/41



Exhibit 4: Weather

4.a Heating Degree Days (HDDs) 4.b Cumulative HDDs (bcf/degree day)

4.c Cooling Degree Days (CDDs) 4.d Cumulative CDDs (bcf/degree day)

4.e NOAA 6-10 Day Temperature Outlook 4.f NOAA One Month Temperature Outlook

Sources: Bloomberg, NOAA, Colorado State University, EIA, the Weather Network, Raymond James Ltd.

0

50

100

150

200

250

300

J F M A M J J A S O N D

5-Yr Range

2011

2010

0

25

50

75

100

125

150


5-Yr Range

2011

2010

0

1,000

2,000

3,000

4,000

5,000

6,000


2005-2009

2011

2010

0

300

600

900

1,200

1,500

1,800


2005-2009

2011

2010


7/41



Exhibit 5: Natural Gas

5.a NYMEX Gas 1-Mo & Strip Price (US$/mcf) 5.b AECO 1-Mo & Strip Price (Cdn$/Gj)

5.c AECO Differential to NYMEX (US$/mcf) 5.d Oil to Gas Ratio (WTI/NYMEX Gas)

5.e U.S. Natural Gas Storage (Bcf) 5.f Change in U.S. Natural Gas Storage (Bcf)


$2

$4

$6

$8

Feb -09 A ug -09 Feb-10 A ug -10 Feb-11 A ug-11 Feb -12

$0

$2

$4

$6

$8

Feb -09 A ug -0 9 Feb -10 A ug-10 Feb -11 A ug -11 Feb-12

($0.25)

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

Feb -0 9 A ug -0 9 Feb -10 A ug -10 Feb -11 A ug -11 Feb -12

1,000

1,500

2,000

2,500

3,000

3,500

4,000


Five-Year Range

Five-Year Average

2011

2010

-300

-250

-200

-150

-100

-50

0

50

100

150


Five-Year Range

Five-Year Average

2011

2010

5x

7x

9x

11x

13x

15x

17x

19x

21x

23 x

25x

27x

Feb -09 A ug -0 9 Feb-10 A ug -10 Feb -11 A ug -11 Feb -12


8/41



Exhibit 6: Natural Gas (continued)

6.a Weekly U.S. LNG Imports (Bcf) 6.b LNG Netbacks - Landed (US$/mcf)

Destination Port Jan-11 Feb-11 Mar-11

Cove Poi nt $4.04 $7.75 $7.40

Al tami ra $4.24 $4.70 $4.53

La ke Cha rles $3.63 $4.04 $3.89

Spain $8.80 $9.20 $9.60

Belgi um $8.54 $8.43 $8.55

UK $8.45 $8.33 $8.43

India $8.60 $9.50 $10.10

Japan $9.85 $10.55 $10.45

Korea $9.95 $10.55 $10.56

6.c N.A. Gas Spot Prices (US$/mcf) - Friday Close

Sources: Bloomberg, Waterborne Energy, Raymond James Ltd.

0

5

10

15

20

25


Five-Year Range

Five-Year Average

2010

2011

$4.19

$4.21

$4.32

$4.67$4.49

$4.78

$4.57 $4.47

$4.44

$4.74

$5.17

$5.15

$3.874

Niagara

NY City Gate

Ventura

Chicago

Katy Hub Henry Hub

Waha Hub

AECO

Sumas

Malin

Opal

San JuanTopock


9/41



Exhibit 7: Natural Gas (continued)

7.a Cdn Natural Gas Production (Bcf/d) 7.b Cdn Natural Gas Exports to U.S. (Bcf/d)

7.c U.S. Natural Gas Production (Bcf/d) 7.d U.S. Natural Gas Demand (Bcf/d)

7.e U.S. Natural Gas Exports to Mex. (Bcf/d) 7.f NYMEX Gas Non-Commercial Positions

Sources: Bloomberg, Bentek Energy, Raymond James Ltd.

11

12

13

14

15

16


Four-Year Range

Four-Year Average

2010

2009

8

9

10

11

12

13

14


Three-Year Range

Three-Year A verage

2010

2009

50

52

54

56

58

60

62

64

66


Four-Year Range

Four-Year Average

2010

2009

40

50

60

70

80

90

100

110


Four-Year Range

Four-Year Average

2010

2009

-225,000

-200,000

-175,000

-150,000

-125,000

-100,000

Feb-

09

M ay-

09

Aug-

09

Nov-

09

Feb-

10

May-

10

Aug-

10

Nov-

10

0.0

0.5

1.0

1.5

2.0


Four-Year Range

Four-Year Average

2010

2009


10/41



Exhibit 8: Crude Oil

8.e Heavy Differential (in US$/bbl & % of Edmonton Par)

Sources:Bloomberg, Raymond James Ltd.

8.a Light Oil 1-Mo & Strip Price (US$/bbl)

8.c Heavy Oil Prices (US$/bbl) 8.d Crude Oil Storage (# of days of inventory)

8.b Crude Oil Storage (000's of bbls)

240,000

260,000

280,000

300,000

320,000

340,000

360,000

380,000


Five-Year Range

Five-Year Average

2011

2010

$30

$40

$50

$60

$70

$80

$90

$100

$110

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11

WTI

Brent

$20

$30

$40

$50

$60

$70

$80

$90

$100

F eb- 09 M ay -0 9 A ug -0 9 N ov -0 9 F eb -10 M ay -1 0 A ug -1 0 N ov -1 0 F eb -1 1

Lloyd

Maya

16

18

20

22

24

26


Five-Year Range

Five-Year Average

2011

2010

-$10

$0

$10

$20

$30

$40


-25%

-15%

-5%

5%

15%

25%

35%

Heavy $

Heavy %


11/41



Exhibit 9: Crude Oil (continued) and Refining

9.e U.S. Refining Margins (US$/bbl)


9.c Weekly Tanker Rates (US$/bbl)

9.b OPEC Capacity and Production (mln bbl/d)

9.d WTI Oil Non - Commercial Positions

9.f Gasoline and Distillate Pricing (US$/bbl)

9.a U.S. Crude Imports (000's bbl/d)

25

27

29

31

33

35

37

F eb- 09 Ma y- 09 A ug -0 9 N ov -0 9 F eb- 10 Ma y- 10 A ug -1 0 N ov -10 F eb -1 1

OPEC Spare Capacity

OPEC Production

$1

$2

$3

$4

Fe b-09 May-09 Au g-09 Nov-09 Feb-10 May-10 Aug -10 No v-10 Feb-11

7,000

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

12,000


Five-Year Range

Five-Year Average

2011

2010

$0

$5

$10

$15

$20

$25


321 Spread

211 Spread

$30

$40

$50

$60

$70

$80

$90

$100

$110


Gasoline

Distillates

-50,000

-25,000

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000



12/41



Exhibit 10: Refining (continued)

10.c Distillates Storage (# of Days Fwd Supply)


10.d Distillates Demand (000's of bbls)

10.b Gasoline Demand (000's of bbls)10.a Gasoline Storage (# of Days Fwd Supply)

10.e Refinery Utilization Rate (% of Capacity)

60%

65%

70%

75%

80%

85%

90%

95%

100%


Five-Year Range

Five-Year Average

20112010

8,000

8,500

9,000

9,500

10,000


Five-Year Range

Five-Year Average

2011

2010

18

20

22

24

26

28


Five-Year Range

Five-Year Average

2011

2010

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50


Five-Year Range

Five-Year Average

2011

2010

3,000

3,500

4,000

4,500

5,000


Five-Year Range

Five-Year Average

2011

2010


13/41



Exhibit 11: Energy Services

11.a Weekly Rig Count 11.b Weekly Service Rig Count

11.c Contractor Utilization (13-Wk MA) 11.d Well Licenses (13-Wk Total)

11.e Well Completions 11.f Well Licenses

Sources: Nickle's Energy Group, CAODC, Raymond James Ltd.

20%

30%

40%

50%

60%

70%

80%

90%

Sep Oct Nov Dec Jan Feb

NBR

PD

SDG

TDG

SVYESI

AKT

1,500

19,904

1,500

1,177

1,177

9,323

837

13,634

837

13,300

644

644

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Quarter to Date Year to Date Full Year

20

08

20

09

20

10

20

11

2008

2009

2008

2009

2010

2011

2010

2011

1,177

19,333

2,048

2,048

10,334

1,159

1,159

1,177

14,580

1,394

1,394

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Quarter to Date Year to Date Full Year

2008

2009

2010

200

8

200

9

201

0

201

1

200

8

200

9

201

0

201

1

0

100

200

300

400

500

600

700

800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006-2009

2011

20100

100

200

300

400

500

600

700

800

900

1,000


2006-2009

2011

2010

0

2,000

4,000

6,000

8,000

10,000


2006-2009

2011

2010

WRG


14/41



Exhibit 12: Energy Services (continued)

12.a U.S. Active Land Rigs Targeting Gas 12.b U.S. Active Land and GOM Rig Count

12.c U.S. State Drilling Rig Counts 12.d U.S. Active Rigs by Drilling Type

12.e U.S. Active Well Service Rig Count 12.f International Active Rig Count

Sources: EIA, Baker Hughes, Raymond James Ltd.

0

500

1,000

1,500

2,000

2,500

'03 '04 '05 '06 '07 '08 '09 '10 '11

0

15

30

45

60

75

90

105

120

135

150

Land Drilling Rigs

GOM Drilling Rigs

0

200

400

600

800

1,000

1,200

'03 '04 '05 '06 '07 '08 '09 '10 '11

0

30

60

90

120

150

180

210

240

270

300Texas (left-hand scale)

Colorado (right-hand scale)

Arkansas (right-hand scale)

Wyoming (right-hand scale)

Lousiana (right-hand scale)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

Horizontal

Directional

Vertical

200

400

600

800

1,000

1,200

'04 '05 '06 '07 '08 '09 '10

Offshore

Land

1,500

1,700

1,900

2,100

2,300

2,500

2,700


2004

20052006

2007

2008

2009

2010

2007

600

800

1,000

1,200

1,400

1,600


2006

2008

20092010

2011


15/41



Raymond James Canadian Energy Coverage Share PerformanceTotal Returns Capital Returns (%) Total Returns Capital Returns (%)

Ticker Price 1-Year YTD QTD MoM MTD Week

52-Week

Low

52-Week

Hi Ticker Price 1-Year YTD QTD MoM MTD Week

52-Week

Low

52-Week

Hi

Advantage Oil & Gas Ltd. AAV $7.57 10% 12% 12% 1 1% 2% 4% 33% -9% Petrodorado Energy Ltd. PDQ $0.67 na -6% -6% -8% -4% -3% 235% -13%

Alange Energy Corp. ALE $0.30 -45% -44% -44% -42% -3% -2% 9% -63% Petromanas Energy Inc. PMI $0.43 42% 8 % 8% 13% 4% 1% 67% -46%

Alter NRG Corp. NRG $1.49 -34% 3% 3% 4% 6 % 6 % 33% -37% Petrominerales Ltd PMG $37.22 56% 12% 12% 12% -5% -5% 67% -7%

ARC Resources Ltd. ARX $25.41 25% 0% 0% -1% 2% 3% 35% -3% Precision Drilling Corporation PD $10.27 22% 7% 7% 6% -2% -1% 71% -4%

Athabasca Oil Sands Corp. ATH $16.60 na 10% 10% 12% -2% -1% 68% -8% Progress Energy Ltd. PRQ $13.41 2% 6% 6% 7% -2% 1% 30% -7%

AvenEx Energy Corp. AVF $6.15 15% 0% 0% 1% -2% 0% 32% -5% ProspEx Resources Ltd. PSX $1.86 4% 42% 42% 38% 3% -1% 68% -25%

Bankers Petroleum Ltd. BNK $8.94 50% 18% 18% 1 8% 7% 9% 63% -8% Pure Energy S ervic es Ltd. PS V $6.70 154% 12% 12% 1 5% 11% 1 1% 215% -4%

Baytex Energy Corp. BTE $50.43 65% 8% 8% 7% 2% 3% 82% -2% Reliable Energy Ltd. REL $0.43 19% 26% 26% 30% 5% 4% 65% -4%

Birchcliff Energy Ltd. BIR $12.04 26% 26% 26% 26% 6% 7% 52% -1% Renegade Petroleum Ltd. RPL $4.88 36% 20% 20% 22% 10% 12% 74% 4%

Black Diamond Group Limited BDI $23.70 36% 10% 10% 1 0% 0% 1% 48% -3% Savanna Energy S ervices Corp. S VY $7.39 3% 4% 4% 8% 4% 3% 46% -5%

Bonavista Energy Corporation BNP $29.69 27% 3 % 3% 1% 1% 2% 35% -1% Secure Energy Services Inc . SES $5.92 na 1 % 1 % 5% 1% 2% 91% -4%Calfrac Well S erv ic es Ltd. CFW $33.85 43% -1% - 1% 2 % 0% 0% 10 6% -6% S haMaran Petro leum Co rp S NM $1 .2 3 167% -10% -10% -11% -6% -9 % 2 46% -14%

Canadian Natural Re so urc es Limite d CNQ $ 44 .1 5 2 6% 0 % 0 % 0 % -1 % 2 % 3 8% -4 % S outhe rn P ac ific Re so urc e C orp. S TP $ 1.8 4 1 02 % 1 0% 10 % 9 % 5 % 8 % 1 39 % -2 %

Canadian Oil S ands Limited COS $28.54 1% 8 % 8 % 7% 4% 7% 18% -14% Stoneham Drilling Trust S DG $16.35 227% 40% 40% 38% 2% 9% 241% -5%

Canyon Services Group, Inc. FRC $11.83 219% 9% 9% 9% 6% 6% 238% -3% Suncor Energy Inc. SU $40.61 28% 6 % 6% 7% -2% 1% 36% -5%

Cenovus Energy Inc. CVE $33.88 na 2% 2 % 1% -2% 2% 40% -4% Suroco Energy Inc . SRN $0.86 56% 30% 30% 25% 1% 2% 146% -9%

Cequence Energy Ltd. CQE $2.91 -5% 48% 48% 49% 8% 10% 90% -13% Talisman Energy Inc. TLM $22.75 26% 3% 3% 2% -1% 3% 45% -2%

Cinch Energy Corp. CNH $1.03 -30% -16% -16% -13% -4% -16% 2% -46% Toromont Industries Ltd. TIH $31.70 17% 3 % 3% 3% 1% 1% 39% -2%

Cirrus Energy Corporation CYR $1.12 -37% 24% 24% 2 6% 5% 22% 129% -51% Trican Well S ervice Ltd. TCW $22.27 55% 11% 11% 1 3% 2% 5% 114% -6%

Connacher Oil and Gas Ltd. CLL $1.37 14% 3 % 3% 3% -5% -4% 25% -27% Trinidad Drilling Ltd. TDG $7.26 2% 15% 15% 1 6% 1% 4% 60% -10%

Crescent Point Energy Corp. CPG $43.62 16% -1% -1% 0% -1% 1% 24% -4% Twin Butte Energy Ltd. TBE $2.91 143% 43% 43% 4 1% 9% 1 3% 155% 1%

Crew Energy Inc. CR $21.19 51% 11% 11% 12% 5% 7% 54% -1% V ermilion Energy Inc. VET $47.40 46% 3% 3% 4% 0% 1% 52% -1%

Crocotta Energy Inc. CTA $2.45 63% 39% 39% 4 1% 3% 7% 86% -6% Western Energy S ervic es Corp. WRG $0.44 -40% 22% 22% 2 6% 1 1% 11% 252% -40%

Daylight Energy Ltd DAY $10.16 -2% -2% -2% 0% 1% 2% 21% -12% Westernzagros Resources Ltd. WZR $0.56 -10% 18% 18% 1 8% 2% 2% 143% -40%

EnCana Corp. ECA $31.68 -4% 9% 9% 8% -2% -1% 14% -12% WestFire Energy Ltd. WFE $8.23 na 19% 19% 18% 3 % 4 % 83% -12%

Enerplus Corporation ERF $31.85 37% 4% 4 % 0% -1% 0% 75% -3% Zargon Energy Trust ZAR $21.00 6% -7% -7% 4% -7% -5% 24% -8%

Ensign Energy Services Inc. ESI $15.71 4% 5 % 5% 4% -3% 1% 38% -4%

Essential Energy S ervic es Ltd. ES N $2.33 85% 9% 9% 6% 2% 4% 118% -2%

Fairborne Energy Ltd. FEL $4.78 2% 13% 13% 10% 3% 3% 34% -9%

GAS FRAC Energ y S erv ic es, Inc . GFS $10.49 na 14% 1 4% 13 % 0% 1 0% 12 9% -1 3%

Gran Tierra Energy, Inc . GTE $8.92 77% 10% 10% 1 0% -1% 5% 152% -3%

Insignia Energy Ltd ISN $1.89 -15% 5% 5 % 5% -3% -5% 18% -22%

Legacy Oil + Gas Inc. LEG $15.74 40% 1% 1% 2% 2% 2% 60% -2%

Mullen Group Ltd. MTL $20.29 22% 20% 20% 19% 3% 3% 53% -3%

NAL Energy Corporation NAE $13.16 3% 2% 2% 0% 2% 2% 36% -6% T ota l Return s Capi ta l Return s (%)Nexen Inc. NXY $23.94 2% 5% 5% 5% -5% -1% 31% -11%

Niko Resources Ltd. NKO $95.85 -1% -7% -7% -7% -2% 0% 7% -17% 1-Year YTD QTD MoM MTD Week

Novus Energy Inc. NVS $1.28 44% 15% 15% 22% 10% 13% 75% -4% Ne ar-Mont h WT I Contra ct (US $/bbl) 22% -3% - 3% 0% -3% 0 % 31% -3%

NuLoch Resources, Inc . NLR $2.20 47% 6% 6% 10% -1% -1% 132% -12% Ne ar mont h NYM EX cont ra ct (US $/mcf) -2 0% - 2% - 2% - 8% -2 % 0 % 31% -22%

Open Range Energy Corp. ONR $2.62 11% 38% 38% 40% -5% 4% 138% -7% Domestic E&Ps 14% 10% 10% 11% 1 % 2% 46% -9%

OPTI Canada Inc. OPC $0.30 -85% -55% -55% -56% -57% -55% 58% -88% International E&Ps 29% 4% 4% 4 % -1% 1 % 95% -19%

Orleans Energy Ltd. OEX $2.50 -3% 1% 1% 0% 0% 2 % 33% -22% Oil Sands Producers 1% -4% -4% -4% -8% -6% 49% -29%

Pacific Rubiales Energy Corp. PRE $31.53 121% -7% -7% -7% -9% -8% 130% -12% Royalty Trusts 19% 2% 2% 1% 0 % 1 % 39% -6%

Pan Orient Energy Corp. POE $6.88 8% 3% 3% 0% 0% 2 % 46% -21% Oilfield Services 55% 9% 9% 9% 2% 3 % 97% -4%

Parex Resources Inc. PXT $9.65 na 12% 12% 14% 3% 3% 176% 0% O il-Weighted Producers & Trusts 23% 4% 4% 4% -1% 0% 74% -17%

Pengrowth Energy Corporation PGF $12.56 16% -2% -2% -4% -2% -3% 48% -6% Gas-Weighted Producers & Trusts 7% 14% 14% 1 4% 1% 2% 45% -13%

Perpetual Energy Inc. PMT $4.03 -19% 3% 3% 1% 0 % 2% 7% -26% Balanced Producers & Trusts 14% 2% 2% 1% 0 % 1 % 33% -5%

Petroamerica Oil Corp. PTA $0.51 na -16% -16% -18% -7% -7% 82% -31% Large-Cap 11% 5% 5% 4% -1% 2% 32% -7%

PetroBakken Energy Ltd. PBN $21.85 na 1% 1% 0% 2% 3% 18% -28% Mid-Cap 27% 6% 6% 5% 1% 2% 56% -8%

Petrobank Energy and Resources, Ltd. PBG $23.56 -55% -7% -7% -8% 0% 2% 3% -60% Small-Cap 26% 7% 7% 7 % -1% 1% 81% -16%

Leaders & LaggardsWeekly Performance Summary Monthly Performance Summary

*This analysis does not include transaction cos ts and tax considerations. If included these costs could reduce an investor' s return. Past performance is not indicative of future results

Energy Sub-Sector Performance

52-Week

Hi

52-Week

Low

CYR

NVS

TBE

RPL

WRG

Oilfield Services

TSX

Domestic E&Ps

Forex

Royalty Trusts

International E&Ps

NYMEX Gas

WTI

Oil Sands Producers

PTA

PRE

SNM

CNH

OPC

-60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

CQE

CTA

TBE

ONR

SDG

Domestic E&Ps

Oilfield Services

International E&Ps

TSX

Forex

Royalty Trusts

WTI

Oil Sands Producers

NYMEX Gas

SNM

CNH

PTA

ALE

OPC

-80% -60% -40% -20% 0% 20% 40% 60%


16/41


17/41


18/41



EnergyServices

Company

Closing

Target

Stock

Target

MktCap

Name

Symbol

Price

Price

Rating

Return

($mln)

$/sh

Yield

11E

12E

11E

12E

11E

12E

11E

12E

11E

12E

Analyst

BlackDiamond

BDI

$23.70

$26.00

OP2

14.5%

$389

$1.14

4.8%

$1.63

$1.79

14.5x

13.2x

$71

$75

6.6x

6.0x

10

.9%

12.0%

AB

Calfrac

CFW

$33.85

$40.00

OP2

18.6%

$1,459

$0.15

0.4%

$2.01

$3.08

16.8x

11.0x

$286

$367

6.6x

5.1x

11

.5%

15.7%

AB

Canyon

FRC

$11.83

$15.00

SB1

27.6%

$709

$0.10

0.8%

$1.14

$1.34

10.4x

8.8x

$129

$160

5.4x

4.0x

30

.4%

27.2%

AB

Ensign

ESI

$15.71

$17.00

MP3

10.6%

$2,404

$0.38

2.4%

$1.07

$1.17

14.7x

13.5x

$400

$425

6.0x

5.2x

10

.5%

12.0%

AB

Essential

ESN

$2.27

$2.75

OP2

21.1%

$162

$0.00

0.0%

$0.15

$0.22

15.4x

10.3x

$35

$39

4.2x

3.0x

6

.7%

9.2%

AB

GasFrac

GFS

$10.49

$12.50

OP2

19.2%

$628

$0.00

0.0%

$0.51

$1.20

20.4x

8.8x

$71

$140

8.9x

4.3x

11

.9%

23.4%

AB

Mullen

MTL

$20.29

$19.00

MP3

-1.4%

$1,597

$1.00

4.9%

$0.97

$1.08

20.9x

18.8x

$233

$244

8.5x

8.0x

6

.4%

6.9%

AB

Precision

PD

$10.27

$11.50

MP3

12.0%

$2,831

$0.00

0.0%

$0.64

$0.77

16.1x

13.3x

$521

$585

6.7x

5.6x

6

.8%

7.5%

AB

Pure

PSV

$6.70

$10.00

SB1

49.3%

$159

$0.00

0.0%

$0.79

$1.05

8.5x

6.4x

$43

$55

4.0x

2.7x

14

.0%

16.2%

AB

Savanna

SVY

$7.39

$7.50

MP3

1.5%

$584

$0.00

0.0%

$0.33

$0.52

22.1x

14.3x

$101

$122

7.0x

5.5x

4

.0%

5.3%

AB

Secure

SES

$5.92

$6.50

OP2

9.8%

$377

$0.00

0.0%

$0.20

$0.44

29.1x

13.4x

$39

$64

9.6x

6.1x

8

.8%

16.1%

AB

Stoneham

SDG.UN

$16.35

$19.00

OP2

16.2%

$126

$0.00

0.0%

$1.48

$1.73

11.0x

9.5x

$32

$34

5.0x

4.0x

8

.8%

10.2%

AB

Toromont

TIH

$31.70

$36.00

OP2

15.6%

$2,444

$0.64

2.0%

$2.08

NA

15.2x

NA

$332

NA

8.4x

NA

NA

NA

BC/AB

Trican

TCW

$22.27

$28.00

OP2

26.2%

$3,195

$0.10

0.4%

$1.45

$1.88

15.4x

11.8x

$506

$611

6.7x

5.2x

18

.2%

21.0%

AB

Trinidad

TDG

$7.26

$8.50

OP2

19.8%

$877

$0.20

2.8%

$0.39

$0.49

18.5x

14.8x

$225

$240

6.2x

5.4x

5

.6%

6.6%

AB

Western

WRG

$0.44

$0.40

MP3

-9.1%

$332

$0.00

0.0%

$0.03

$0.03

15.5x

13.0x

$52

$59

7.3x

6.0x

11

.5%

12.8%

AB

Median

15.9%

0.2%

$0.88

$1.08

15.4x

13.0x

6.6x

5.2x

10

.5%

12.0%

Source:Bloomberg,RaymondJamesLtd.

Dividen

ds

ROIC

EV/EBITDA

EBITDA

P/E(fd)

EPS(fd)


19/41



Important Investor Disclosures

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20/41



analyst and/or research associate owns shares of the common stock of Leggett & Platt. The covering analyst and/or

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Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the

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Raymond James & Associates (U.S.) definitions

Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the nextsix to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at

least 15% is expected to be realized over the next 12 months. Outperform (MO2) Expected to appreciate and outperform

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Raymond James Latin American rating definitionsStrong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months.

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Strong Buy (1) Absolute return expected to be at least 10% over the next 12 months and perceived best performer in the

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Expected absolute drop in the share price of more than 10% in next 12 months.

Suitability Categories (SR)

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month price targets are assigned only to stocks rated Strong Buy or Outperform.

Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal.

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Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less

predictable earnings and acceptable, but possibly more leveraged balance sheets.


21/41



High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and

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RJL RJA RJL RJA

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22/41



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23/41




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compensation from LEG within the past 12 months.

NAL Energy Corporation Raymond James Ltd. makes a market in the securities of NAL Energy Corporation.


last 12 months with respect to NAL Energy Corporation.


with respect to NAL Energy Corporation.

Raymond James Ltd. has received compensation for investment banking services within thelast 12 months with respect to NAL Energy Corporation.

Nexen Inc. Within the last 12 months, Nexen Inc. has paid for all or a material portion of the travel

costs associated with a site visit by the Analyst and/or Associate.

Niko Resources Ltd Within the last 12 months, Niko Resources Ltd has paid for all or a material portion of the



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Novus Energy Inc. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Novus Energy Inc..


with respect to Novus Energy Inc..


last 12 months with respect to Novus Energy Inc..

NuLoch Resources Inc. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to NuLoch Resources Inc..


with respect to NuLoch Resources Inc..


last 12 months with respect to NuLoch Resources Inc..

Open Range Energy Corp. Raymond James Ltd. makes a market in the securities of Open Range Energy Corp..

Pacific Rubiales Energy Within the last 12 months, Pacific Rubiales Energy has paid for all or a material portion of

the travel costs associated with a site visit by the Analyst and/or Associate.

Parex Resources Inc. Raymond James Ltd. has provided investment banking services within the last 12 months

with respect to Parex Resources Inc..


last 12 months with respect to Parex Resources Inc..

Pengrowth Energy Corporation Raymond James Ltd. has received compensation for investment banking services within the

last 12 months with respect to Pengrowth Energy Corporation.

Perpetual Energy Inc. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Perpetual Energy Inc..


with respect to Perpetual Energy Inc..


last 12 months with respect to Perpetual Energy Inc..

PetroAmerica Oil Corp. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to PetroAmerica Oil Corp..


with respect to PetroAmerica Oil Corp..


last 12 months with respect to PetroAmerica Oil Corp..

PetroDorado Energy Ltd. Raymond James Ltd. has provided investment banking services within the last 12 months

with respect to PetroDorado Energy Ltd..


last 12 months with respect to PetroDorado Energy Ltd..

Petromanas Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Petromanas.

Raymond James Ltd. has provided investment banking services within the last 12 monthswith respect to Petromanas.


last 12 months with respect to Petromanas.

Progress Energy Resources

Corp.


last 12 months with respect to Progress Energy Resources Corp..


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Reliable Energy Ltd. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Reliable Energy Ltd..


with respect to Reliable Energy Ltd..


last 12 months with respect to Reliable Energy Ltd..

Renegade Petroleum Ltd. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Renegade Petroleum Ltd..


with respect to Renegade Petroleum Ltd..


last 12 months with respect to Renegade Petroleum Ltd..

Secure Energy Services Inc. Raymond James Ltd. makes a market in the securities of Secure Energy Services Inc..


last 12 months with respect to Secure Energy Services Inc..


with respect to Secure Energy Services Inc..


last 12 months with respect to Secure Energy Services Inc..

ShaMaran Petroleum Corp. Raymond James Ltd. has received compensation for investment banking services within the

last 12 months with respect to ShaMaran Petroleum Corp..

Southern Pacific Resources

Corp.


last 12 months with respect to Southern Pacific Resources Corp..


with respect to Southern Pacific Resources Corp..


last 12 months with respect to Southern Pacific Resources Corp..

Sprint Nextel Corp. Raymond James & Associates received non-investment banking securities-related

compensation from S within the past 12 months.

Suroco Energy Inc Raymond James Ltd. has received compensation for investment banking services within the

last 12 months with respect to Suroco Energy Inc.

Toromont Industries Within the last 12 months, Toromont Industries has paid for all or a material portion of the


TransDigm Group, Inc. Raymond James & Associates received non-securities-related compensation from TDG

within the past 12 months.

Trinidad Drilling Ltd. Within the last 12 months, Trinidad Drilling Ltd. has paid for all or a material portion of the



within the last 12 months with respect to Trinidad Drilling Ltd..

Raymond James Ltd. has received compensation for investment banking services within thelast 12 months with respect to Trinidad Drilling Ltd..


banking within the last 12 months with respect to Trinidad Drilling Ltd..

Twin Butte Energy Inc. Raymond James Ltd. makes a market in the securities of Twin Butte Energy Inc..

Vermilion Energy Inc. Raymond James Ltd. has received compensation for investment banking services within the

last 12 months with respect to Vermilion Energy Inc..


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Western Energy Services Corp. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to Western Energy Services Corp..


with respect to Western Energy Services Corp..


last 12 months with respect to Western Energy Services Corp..

WestFire Energy Ltd. Raymond James Ltd. has managed or co-managed a public offering of securities within the

last 12 months with respect to WestFire Energy Ltd..


with respect to WestFire Energy Ltd..


last 12 months with respect to WestFire Energy Ltd..

Stock Charts, Target Prices, and Valuation Methodologies

Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of

qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall

attractiveness; management effectiveness; competition; visibility; financial condition, and expected total return, amongother factors. These factors are subject to change depending on overall economic conditions or industry- or company-

specific occurrences.

Risk Factors

General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on

Raymond James research: (1) Industry fundamentals with respect to customer demand or product / service pricing could

change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or

new product expectations could change investor attitudes toward the sector or this stock; (3) Unforeseen developments

with respect to the management, financial condition or accounting policies or practices could alter the prospective

valuation; or (4) External factors that affect the U.S. economy, interest rates, the U.S. dollar or major segments of the

economy could alter investor confidence and investment prospects. International investments involve additional risks suchas currency fluctuations, differing financial accounting standards, and possible political and economic instability.

Risks - Alter NRG

1. Limited financial resources - Alter Nrg must rely on its ability to borrow funds or sell additional equity to finance its costs

of developing projects. Alter Nrg's ability to raise funds is subject to capital market risks, such as the availability and cost of

capital as well as the company's credibility. If financing is unavailable, projects may be delayed, development may be

indefinitely postponed, or the future value of the company's investment may be impaired. 2. Project execution risks -

Gasification projects are in early stages of development, with inherent risks such as cost overruns due to the changes in

availability and costs of materials, equipment and qualified personnel. 3. Regulatory risks - The development of gasification

projects are dependent on the company receiving the necessary regulatory approvals. A failure to obtain these approvals

on a timely basis or with acceptable terms and conditions could result in delays, abandonment or restructuring of projects

and increased costs, all of which could have a material adverse effect on Alter Nrg. 4. Risks related to commodity prices,

exchange rates, interest rates, tipping fees, political factors and general economic conditions. 5. Early Development - Thecompany is in early stages of development and have no history of earnings or operations. Future development and

profitability is highly dependent on development of projects. 6. Competition - The gasification industry is highly competitive

and Alter Nrg competes with a substantial number of other companies. Alter Nrg's technology is one of many alternatives in

gasification - and although it benefits from being the most advanced in the plasma gasification space - there can be no

assurance that this technology will be adopted on a wide scale.


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Risks - Novus Energy Ltd.

1) Operational risks, including weather related risks; 2) Project execution risks, including cost overrun risks due to material

and labour costs escalation and productivity issues; 3) Exploration and development risks primarily on conventional

production related to locating commercially viable reserves and carrying out successful drilling programs; 4) Environmental

risks, including costs of new equipment and associated construction costs for maintaining environmental integrity; 5)

Regulatory risks with regard to oil and gas projects. 6) Commodity price risk and foreign exchange risk.

Risks - Canadian Natural Resources Ltd.

1) Operational risks, including weather related risks in offshore Africa or North Sea; 2) Project execution risks, especiallywith large-scale projects such as the oil sands and offshore Africa and North Sea, including cost overrun risks due to

material and labor costs escalation and productivity issues; 3) Exploration and development risks primarily on conventional

production related to locating commercially viable reserves and carrying out successful drilling programs; 4) Political risks in

some countries such as Africa and UK. 5) Environmental risks, including costs of new equipment and associated

construction costs for maintaining environmental integrity; 6) Regulatory risks with regard to international and the oil sands

projects.

Risks - Alange Energy Corp.

International oil & gas companies within our research universe are subject to a range of risks, including, but not limited to:

environmental risk, political risk, operational risk, financial risk, hedging risk, commodity price fluctuation risk, and currency

risk. Any difference between our oil & gas price forecasts and realized commodity prices will likely have an impact on our

earnings and valuation estimates for the international oil & gas companies in our research coverage universe. Alange's oil &

gas operations are inherently complex and exposed to a number of risks, most of which are beyond the companys control.These include: environmental compliance issues; personal accidents; production problems; availability of labor and

equipment, and interruption due to inclement, weather conditions, road closures, and/or militant activities. Other risks

include, but are not limited to: uncertainties surrounding capital and operating costs; aging equipment and facilities which

could lead to increased costs; actions taken by Colombia's government; and changes in fiscal regimes.

Risks - Petromanas Energy Inc.

Competition - The oil & gas industry is highly competitive and the corporation competes with a substantial number of

companies. There can be no assurance that such competitors will not substantially increase the resources devoted to the

development and marketing of products and services that compete with those of Petromanas or enter markets that

Petromanas is active in.

Commodity Price Volatility - The corporation is subject to the fluctuations in oil, natural gas and other commodity energy

prices. It is anticipated that the international oil & gas industry has an inherently high capital cost due to large construction

projects. Nevertheless, changes in commodity prices could result in a decision by Petromanas to suspend or reduceoperations because such operations are no longer economically viable. If production is not suspended or reduced during

such period, the low differential between the price of the corporations end products and the cost of production could

lower Petromanas revenues.

Reserve and resource risks - Petromanas currently provides both internal and third party resource evaluations on its assets.

These calculations remain dependent on long-term oil & gas pricing, geological assumptions made, and the companys

ability to confirm/discover oil &/or gas on said assets. The company does not currently have any booked reserves, and as

such, an investment in Petromanas is subject to exploration activity risks.

Drilling risks - Petromanas is focused on oil & gas exploration, including the potential to drill relatively deep wells (~5,000+

meters). These wells inherently carry a higher operational risk than shallower wells due to, amongst other risks, the higher

pressures and temperatures typically encountered at these depths.

Regulatory and Political - Petromanas operations are subject to a variety international laws, regulations and guidelines,

including laws and regulations relating to health and safety, the conduct of operations, the protection of the environment

and the manufacture, management, transportation, storage and disposal of certain materials used in operations. Changes

to laws, regulations and guidelines due to environmental changes, unforeseen environmental effects, general economic

conditions and other matters may cause adverse effects to operations. The companys properties are located in Albania.

The companys operations, financial results, and valuation could be adversely affected by events beyond its control taken

by the current or future governments in Albania with respect to policy changes regarding taxation, regulation, and other

business environment changes.

Environmental Liability - Petromanas is subject to various environmental laws and regulations enacted in the jurisdictions in

which it operates, including the governance of the manufacturing, processing, importation, transportation, handling and

disposal of certain materials used in operations. Petromanas may become liable for damages against which it cann


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Risks - Pacific Rubiales Energy




earnings and valuation estimates for the international oil & gas companies in our research coverage universe. Pacific

Rubiales' oil & gas operations are inherently complex and exposed to a number of risks, most of which are beyond the

companys control. These include: environmental compliance issues; personal accidents; production problems; availability

of labor and equipment, and interruption due to inclement, weather conditions, road closures, and/or local protests. Other

risks include, but are not limited to: uncertainties surrounding capital and operating costs; aging equipment and facilities

which could lead to increased costs; actions taken by host governments; and changes in fiscal regimes.

Risks - Parex Resources Inc.




earnings and valuation estimates for the international oil & gas companies in our research coverage universe. Parex

Resources oil & gas operations are inherently complex and exposed to a number of risks, most of which are beyond the


of labor and equipment, and interruption due to inclement, weather conditions, road closures, and/or labour union strike

activities. Other risks include, but are not limited to: uncertainties surrounding capital and operating costs; aging equipment

and facilities which could lead to increased costs; actions taken by, Colombia's, and Trinidad & Tobago's governments; and

changes in fiscal regimes.

Risks - Petroamerica Oil Corp.




earnings and valuation estimates for the international oil & gas companies in our research coverage universe. Petro

Andina's oil & gas operations are inherently complex and exposed to a number of risks, most of which are beyond the


of labor and equipment, and interruption due to inclement, weather conditions, road closures, and/or labour union strike

activities. Other risks include, but are not limited to: uncertainties surrounding capital and operating costs; aging equipment

and facilities which could lead to increased costs; actions taken by, Argentina's, Colombia's, and Trinidad & Tobago's

governments; and changes in fiscal regimes.

Risks - Nexen Inc.

Risks include, but are not limited to, exposure to fluctuations in commodity prices (primarily oil & gas), as well as variations

in foreign exchange rates and interest rates. Operational risks include weather-related interruptions, dry holes, restricted

access to facilities, unplanned pipeline shutdowns, unexpected production delays and cost overruns. Also, higher than

expected decline rates could result in lower production. Other notable risks include change in government policies and

legislation (e.g. income tax and royalty), counterparty risk, environmental concerns, and changes in reserve estimates.

Lower cash flow could impact Nexens ability to service and/or refinance debt.

Risks - Cenovus Energy

Key risks include cash flow exposure to fluctuations in commodity prices and foreign exchange rates, more specifically the

relationship between the Canadian and U.S. dollar. Due to the nature of its operations, Cenovus also faces risks associated

with weather-related interruptions, dry holes, restricted access to facilities, unplanned pipeline shutdowns and unexpected

production delays. Also, the company is exposed to the risk that unexpected increases in decline rates lower productionvolumes, resulting in lower cash flow. Unexpected cost overruns, change in government policies (local, provincial and

federal) and interest rate fluctuations could also negatively impact net income and cash flow.

Risks - Advantage Oil & Gas Ltd.


and labor costs escalation and productivity issues; 3) Exploration and development risks primarily on conventional





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Risks - ARC Resources Ltd.






Lower cash flow could impact Arcs ability to service and/or refinance debt.

Risks - AvenEx Energy Corp.Risks include, but are not limited to, exposure to fluctuations in commodity prices (primarily oil & gas), as well as variations





Lower cash flow could impact Avenirs ability to service and/or refinance debt. Avenir may be negatively affected if the

portfolio of Real Estate assets which it owns decreases in value.

Risks - Black Diamond Group Ltd.

Some of the specific risk factors that pertain to the projected 6 to 12 month stock price target for Black Diamond are as

follows: i) The demand, pricing and terms for modular structures is highly dependant on the level of industry activity for

Canadian resource companies and infrastructure development. The level of activity is influenced by several factors outside

of Black Diamonds control, including but not necessarily limited to; commodity prices, the cost of exploring for anddeveloping resources, available infrastructure capacity, and the ability of project oriented resource companies to raise

equity capital or debt financing. ii) The modular structures market is highly competitive with both regional suppliers and

large multi-national companies in the industry. Although Black Diamond believes that it is continuing to build market share,

it does not presently hold a dominant market position with respect to any of the services it offers. iii) Future development

in Albertas oil sands is subject to environmental regulations which could potentially reduce overall investment in the

region. A material portion of Black Diamonds near term growth is dependant on continued investment in the oil sands.

Risks - Birchcliff Energy Ltd.


and labor costs escalation and productivity issues; 3) Exploration and development risks primarily on conventional




Risks - Bankers Petroleum




earnings and valuation estimates for the international oil & gas companies in our research coverage universe. Bankers' oil &

gas operations are inherently complex and exposed to a number of risks, most of which are beyond the companys control.

These include: environmental compliance issues; personal accidents; production problems; availability of labor and

equipment, and interruption due to inclement, weather conditions, road closures, and/or local protests. Other risks include,

but are not limited to: uncertainties surrounding capital and operating costs; aging equipment and facilities which could

lead to increased costs; actions taken by Albania's governments; and changes in fiscal regimes.

Risks - Bonavista Energy Corporation






Lower cash flow could impact Bonavistas ability to service and/or refinance debt.

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