(Business Edge columnist Gyle Konotopetz regularly profiles the top three stock picks of some of Canada’s most accomplished investment pros.)

FEATURED PRO: Peter Linder is the Calgary energy strategist with DeltaOne Capital Partners (deltaonecapital.com) and manages the DeltaOne Energy Fund. With offices in Calgary and Toronto, DeltaOne is an asset- management firm managing long/short hedge funds focused on the energy sector.

Fund Form: The DeltaOne Energy Fund has returned 48.4 per cent in the past 12 months (compared to the group average of 42.5 per cent). Year to date, DeltaOne is down 9.2 per cent.

Management Expense Ratio (MER): Two per cent.

Past Picks: Linder says he has sold the fund’s holdings in High Point Resources (HPR-TSXV), Milagro Energy (MIG-TSX) and Sentra Resources (SRA-TSX), which were his top Edge picks last November.

Linder’s Energy Perspective: “I’m very bullish on the sector, as I believe that the earnings cash flow for just the second quarter of this year will amount to 50 per cent of what the analysts are forecasting for the whole year.

“All three of my top picks are junior companies that are well managed and run by people with significant previous experience with other companies. These are very important factors with junior companies. All three of my picks have only been around about one year.”

Linder’s Commodities Forecast: Linder predicts oil prices will average near $40 US per barrel this year and $38 US per barrel next year. He forecasts a natural gas average price for this year of $6.50 US (per mcf).



FIRST STAR
* Galleon Energy (GO.A-TSXV)
* Recent Price: $7.80.
* 52-Week Range: $1.90-$8.
* Linder’s 12-Month Target: $15.
* Snapshot: Galleon is a junior oil and gas company with operations in central and northwestern Alberta, and western Saskatchewan.
* CEO: Glenn Carley.
* Head Office: Calgary.
* Vital Stats: Revenue (last 12 mos), $300,000; Earnings/Loss (last 12 mos), $200,000 Loss; Market Cap, $17.43 million; Shares Outstanding, 9.2 million.
* Linder’s View: “This company has been around only about a year and has gone from zero boe/d (barrels of oil equivalent per day) to about 1,600 boe/d currently. It should reach 3,000 boe/d by the end of this year and average about 4,000 boe/d next year.
“All this future growth will be through the drill bit. They have by far the best land position of any junior producer and the most exciting drilling prospects of any junior producers, and they are 80-per-cent weighted toward natural gas, all of it unhedged. They should deliver more than $2 in cash flow per share next year. So I think it’s a double a year from now.”
* Linder’s Risk Rating: Medium (relative to oil and gas sector).
* Web Watch: www.galleonenergy.com



SECOND STAR
* Espoir Exploration (ESX.A-TSXV)
* Recent Price: $3.90.
* 52-Week Range: $1.80-$5.
* Linder’s 12-Month Target: $7.
* Snapshot: Espoir is a junior oil and gas company primarily focused in Alberta, including the Peace River Arch.
* CEO: Bruce Beynon.
* Head Office: Calgary.
* Vital Stats: Revenue (last 12 mos), n/a; Earnings/Loss (last 12 mos), $100,000 Loss; Market Cap, $30.03 million; Shares Outstanding, 8.5 million.
* Linder’s View: “This company is predominantly focused on natural gas and it has grown from 300 boe/d for the first quarter to about 800 boe/d currently. The company should exit this year at about 1,000 boe/d.”
* Linder’s Risk Rating: Medium.
* Web Watch: www.espoir-exploration.com



THIRD STAR
* Eastshore Energy (EST.AX-TSXV)
* Recent Price: $3.10.
* 52-Week Range: $1-$4.
* Linder’s 12-Month Target: $5.
* Snapshot: Eastshore is a junior oil and gas company with its operations predominantly in west-central Alberta.
* CEO: Gary Burns.
* Head Office: Calgary.
* Linder’s View: “This company is predominantly focused on natural gas and it has been doubling and tripling production. It is run by the ex-president of Trilink (an oil and gas company that was taken over). The company has had significant drilling success to date and should deliver approximately $1 cash flow per share in ’05.”
* Linder’s Risk Rating: Medium.
* Web Watch: www.eastshoreenergy.com

Linder’s Edge Record (past 12 mos): -27.2. Best Pick: Cequel Energy (CGL-TSX) +42.4 per cent. Worst Pick: Milagro Energy (MIG-TSXV) -64.3 per cent.

Disclosure: Linder is restricted from trading shares within the DeltaOne Energy Fund in which the featured stocks are held.