(Every week, Business Edge columnist Gyle Konotopetz profiles the top three stock picks of one of Canada’s most accomplished investment pros.)

FEATURED PRO: Gord Currie is the Calgary-based oil and gas analyst with Canaccord Capital, Canada’s largest independent investment dealer (www.canaccord.com).

Canaccord’s Commodities Outlook for 2003: Oil – $24.75 US per barrel (recently $25.29); Natural Gas – $4 US mcf (recently $3.87).

Currie’s Perspective: “Our oil price forecast for the first quarter is $28, but then it goes down from there because we’re expecting the Iraq situation (threat of war) to be settled.”



FIRST STAR
* Petro-Canada (PCA-TSX)
* Recent Price: $44.30.
* 12-Month Range: $33.90-$48.85.
* Currie’s Call: Buy.
* 12-Month Target: $52.
* Snapshot: Petro-Canada is an
integrated oil and gas company with four core businesses – East Coast offshore, North American natural gas, refining and marketing, and international operations (through acquisition of Veba oil and gas company).
* CEO: Ron Brenneman.
* Head Office: Calgary (4,178 employees).
* Vital Stats: Current Price/Earnings Ratio, 15.7; Revenue (last 12 mos), $8.1 billion; 5-Yr Revenue Growth, 10.9%; Profit (last 12 mos), $689.0
million; Market Cap, $11.67 billion; Shares Outstanding, 263.4 million; Dividend Yield, 0.90%.
* Currie’s Comment: “I like the fact that Petro-Canada has exposure to all three of Canada’s frontier areas – the East Coast, the oilsands and Northern Canada. They also have some international opportunities which separates them from, say, an Imperial Oil, Shell Canada or Suncor, which are purely domestic.”
* Currie’s Risk Rating: Medium (relative to oil and gas sector).
* Web watch: www.petro-canada.ca



SECOND STAR
* Encana (ECA-TSX)
* Recent Price: $41.78.
* 12-Month Range: $36.35-$51.
* Currie’s Call: Buy.
* 12-Month Target: $54.
* Snapshot: EnCana is the powerhouse oil and gas company created through the merger of two of Canada’s biggest players – Alberta Energy Company and PanCanadian Energy. The operations are centred around four divisions – onshore North America, offshore and international operations, offshore and new venture exploration and midstream and marketing. The company is weighted about 67 per cent toward natural gas production.
* CEO: Gwyn Morgan.
* Head Office: Calgary (2,152 employees).
* Vital Stats: Current Price/Earnings Ratio, 17.3; Revenue (last 12 mos), $8.1 billion; Profit (last 12 mos), $886.0 million; Market Cap, $19.95 billion; Shares Outstanding, 477.4 million; Dividend Yield, 0.96%.
* Currie’s Comment: “The merger created a bigger and more diverse company, but it continues to sound a lot like Alberta Energy in terms of its target of 10 to 15 per cent growth. They’re a North American powerhouse gas producer.”
* Currie’s Risk Rating: Medium.
* Web watch: www.encana.com



THIRD STAR
* Zargon Oil & Gas (ZAR-TSX)
* Recent Price: $8.15.
* 12-Month Range: $6.50-$9.50.
* Currie’s Call: Buy.
* 12-Month Target: $10.
* Snapshot: Zargon is an upstream oil and gas company with a track record of rapid growth with assets in Alberta, B.C., Saskatchewan and Manitoba.
* CEO: Craig Hansen.
* Head Office: Calgary (37 employees).
* Vital Stats: Current Price/Earnings Ratio, 17.3; Revenue (last 12 mos), $54.1 million; 5-Yr Revenue Growth, 39.1%; Profit (last 12 mos), $8.5 million; 5-Yr Profit Growth, 38%; Market Cap, $142.83 million; Shares Outstanding, 17.5 million.