Oil Stocks: Glenn MacNeill, Sentry Select Capital Corp

Glenn MacNeill, VP, investments, Sentry Select Capital Corp. (PART 1)

On Oil Stocks:

FAIRBORNE ENERGY (TSE:FEL.UN): company we hold, gas-oriented..third quarter slightly disappointing..good management, continue to have good expectations of it

PARAMOUNT RESOURCES (TSE:POU): have some excellent Northern properties planning to break off into subsidiary..think this company will do okay..Trilogy, Paramount Resources Trust broken away..

CANADIAN OIL SANDS (TSE:COS.UN): we were also in the market last week buying..nice solid holding, represents 95,000 barrels of production, they bought Canadian Southern Petroleum at high price, at least 20 years before that yields cash flow..cash flow 35% of Syncrude project, good production, growing daily rates, large tax pools..must remember this is very leveraged to oil prices..our take higher side..if you want exposure to oil prices..no exploration risk..relatively safe

PENN WEST ENERGY (NYSE:PWE TSE:PWT.UN): Penn West is a very large liquid trust, has significant amounts of capital needs to sustain production, interesting areas where it explores in..it is going to have to spend significant amounts of money to keep production going

PAST PICK: CANADIAN NATURAL RESOURCES (NYSE:CNQ TSE:CNQ): we thought it was undervalued..still like it, still hold it..in longer run, a gas bull, will take a normal winter, run storage down, natural gas should be in $9-10 range normally, oil in $60 range..company continues to have lots of exploration and development..add value to shareholders..$67 in next 12 months quite reasonable

PAST PICK: VERMILION ENERGY (TSE:VET.UN): production in France and Netherlands..continue to expect good things..like management, like what they have done..alot of income foreign-based..they pay taxes, foreign taxes sheltered when they pay Canadian distributions..

PAST PICK: HIGHPINE OIL & GAS (TSE:HPX): been a disappointment, still have high hopes for it..some spectacular wells coming out..taking a little longer for drilling process..technologically tricky..taking extra precautions..certainly production numbers low..but it is a fabulous company with great drilling prospects…target price mid $30s over next 12 months

MULLEN GROUP (TSE:MTL.UN): trucking company across Canada, one-third in oil & gas business..high demand area when oil patch active, well run, family controlled..bit of a setback today, had high expectations of McKenzie Valley..would have helped Mullen..hold category..

CANETIC RESOURCES (TSE:CNE.UN): third quarter results came out, disappointing..we continue to hold it, continue to feel outside of tax issue will do well for investors..