FEATURED PRO: Glenn MacNeill is vice-president of investments for Toronto-based Sentry Select Capital Corp. (www.sentryselect.com), where he specializes in the oil and gas sector. MacNeil manages the Sentry Canadian Energy Growth Fund and the Sentry Canadian Resource Fund. He is a professional engineer with 28 years of experience in the investment industry, including the past five with Sentry Select.

Fund Form: The Sentry Canadian Energy Growth Fund has a one-year return of 31.9 per cent compared to the group average of 27.2 per cent and the Sentry Resource Fund has a one-year return of 19.9 per cent compared to the group average of 15.7 per cent.

Management Expense Ratios: Canadian Energy Growth Fund, 2.41 per cent; Canadian Resource Fund, 2.56 per cent.

MacNeill’s Perspective: “I believe that oil is going to remain at a relatively high price (recently in the $50 US per barrel range). I think that anything over $35 is reasonable and reflects the supply/demand situation that we see out there. On the natural gas side, I expect the price (recently in the $8.50 US mcf range) could be in the $9 (US mcf) range with some colder weather.

“This is a people-oriented business and we continue to focus a lot of our attention on the best management teams. While we end up paying more for them, I think it’s worthwhile and it’s turned out to be a good strategy. We tend to avoid the teams that are not delivering results. If we find a team that isn’t delivering their numbers, we usually bail on them pretty quickly.”

First Star

* Tempest Energy (TSX:TMY.A)

* Recent Price: $6.70.

* 52-Week Range: $4.70-$7.90.

* Snapshot: Tempest is an oil and gas company with properties in north-central and east-central Alberta. The company’s production has grown to approximately 4,200 barrels of oil equivalent per day.

* CEO: Scott Dawson.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 60.9; Revenue (last 12 mos), $37.7 million; Earnings (last 12 mos), $2.4 million; Market Cap, $121.23 million; Shares Outstanding; 18.09 million.

* MacNeill’s View: “We like Tempest because we’re expecting they’ll announce an increase in production and, in particular, production on a per-share basis. We expect a large part of that (projected) increase in production to be in natural gas which would increase the ratio (gas-to-oil) from about 10 per cent to about 40 per cent.

“This is a well-managed company that has really plateaued price wise, and I think that once the market knows more about it, it will command a higher price.”

* MacNeill’s Risk Rating: High.

* Web Watch: www.tempestenergy.com

Second Star

* Peyto Energy Trust (TSX:PEY.UN)

* Recent Price: $38.83.

* 52-Week Range: $22.64-$44.69.

* Snapshot: Peyto is a royalty trust targeting gas projects centred in the Deep Basin area of Alberta.

* CEO: Don Gray.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 21.3; Revenue (last 12 mos), $190.7 million; 5-Yr Revenue Growth, 780 per cent; Earnings (last 12 mos), $86.3 million; Market Cap, $1.78 billion; Units Outstanding, 45.73 million; Monthly Distribution, .19 per unit.

* MacNeill’s View: “We feel that he (CEO Don Gray) will continue making his formula work and he also has plenty more prospects to apply that formula with. The formula is based on low finding costs, low operating costs and an ability to continue to drill wells that add value.

“We started buying this stock at $2.10 (before it was a trust). Then, we sold it at one point when we thought it was fully valued, and now we’ve bought back in after doing more work on it. Basically, he (Gray) gets the work done cheaply, relative to his competitors. It’s nothing fancy, he’s not spending a lot of high-risk exploration dollars and he’s focused mainly in one area.”

* MacNeill’s Risk Rating: Medium.

* Web Watch: www.peyto.com

Third Star

* Shell Canada (TSX:SHC)

* Recent Price: $74.91.

* 52-Week Range: $53.01-$79.

* Snapshot: Shell is one of Canada’s largest integrated energy companies with oil and natural gas development and production in Alberta, natural gas development and production at Sable Island, offshore Nova Scotia, and also has a 60-per- cent interest in the Athabasca Oil Sands Project. The company operates 1,430 Shell service stations across Canada.

* CEO: Clive Mather.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 16.1; Revenue (last 12 mos), $10.4 billion; 5-Yr Revenue Growth, 11.3 per cent; Earnings (last 12 mos), $1.3 billion; 5-Yr Earnings Growth, 10.1 per cent; Market Cap, $20.63 billion; Shares Outstanding, 275.38 million; Dividend Yield, 1.3 per cent.

* MacNeill’s View: “We like their Athabasca Oil Sands project, which we believe will be one of the cheapest and best producers of bitumen and upgraded synthetic oil in the Fort McMurray area. The stock is fairly expensive but I think it’s well supported and, based on the fact they’re a fairly large gas producer, we should have even better evaluations going into winter.

“There are also rumours that Royal Dutch/Shell (a major stakeholder) may acquire the minority shares. That would make sense to me. They’ve already bought out their American company and, by buying out Shell Canada, they’d be capturing some value and some badly needed reserves for their company.”

* MacNeill’s Risk Rating: Medium.

* Web Watch: www.shell.ca

Disclosure: MacNeill says he does not have direct ownership of shares in the individual stocks, although he owns the Sentry funds in which they are held.