FEATURED PRO: Glenn MacNeill is vice-president of investments for Toronto-based Sentry Select Capital Corp. (www.sentryselect.com) and a 28-year veteran of the investment industry. MacNeill specializes in the oil and gas industry and manages the Sentry Canadian Energy Growth Fund and the Sentry Canadian Resource Fund.

Fund Form: The Sentry Canadian Energy Growth Fund has a one-year return of 34 per cent and a five-year annualized return of 28 per cent. The Sentry Canadian Resource Fund has a one-year return of 38.8 per cent and a three-year annualized return of 29.3 per cent.

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

MacNeill's Perspective: "We've had a great run (in oil and gas stocks) and we've got a correction taking place, and hopefully we can build a base from here. I think the fundamentals for oil and gas remain strong. Maybe oil won't be $57 (US per barrel) but, as I see it, there can be a floor of $40 to $45, which is a reasonable price based on supply and demand. The bloom is off the rose, but it's simply a resting lull, so we remain very optimistic.

Glenn MacNeill

"Inventories are building reasonably high in both oil and natural gas and we're watching that closely. Oil is obviously controlled by world markets and the natural gas price will be a function of how hot it will be this summer and what we use to generate electricity with."

First Star

* Fairborne Energy (TSX:FEL)

* Recent Price: $13.61.

* 52-Week Range: $8.40-$15.24.

* Snapshot: Fairborne Energy is in the process of restructuring its oil and gas operations into two new public companies - Fairborne Energy Trust and Fairquest Energy, an exploration spinoff focused on natural gas (investors should monitor news for trading information on the new entities). Fairborne Energy CEO Richard Walls will be chairman of the energy trust and CEO of Fairquest. The company's properties are in Alberta and Saskatchewan.

* CEO: Richard Walls.

* Head Office: Calgary.

* MacNeill's View: "I like this company based on the fact they're converting into an income trust and spinning off an exploration company. This company has had a good rapid growth rate and I would expect that growth rate will continue. I think the sum of the parts of the two companies will be worth more than the whole (of Fairborne Energy)."

* MacNeill's Risk Rating: High.

* Web Watch: www.fairborne-energy.com

Second Star

* Paramount Resources (TSX:POU)

* Recent Price: $30.64.

* 52-Week Range: $11.60-$32.45.

* Snapshot: Paramount Resources recently announced a spinoff of part of its operations into a newly formed income trust, Trilogy Energy Trust. Paramount shares are continuing to trade under the symbol POU and Trilogy will trade under the symbol of TET.UN on the TSX. The company's oil and gas operations are in Alberta, Saskatchewan, British Columbia and Montana.

* CEO: Clay Riddell.

* Head Office: Calgary.

* MacNeill's View: "I like the company even more now that they're spinning Paramount into an income trust. We like their basic assets, particularly in the Kaybob area in west-central Alberta. We like management and that's largely what we're betting on. We view this as a long-term hold."

* MacNeill's Risk Rating: High.

* Web Watch: www.paramountres.com

Third Star

* Innova Exploration (TSX:IXL)

* Recent Price: $6.

* 52-Week Range: $2.25-$6.75.

* Snapshot: Innova is an oil and gas company with extensive exploration and production properties spanning southern and central Alberta, southeastern Saskatchewan and northeastern B.C. It recently made a bid to acquire Globex Resources (TSXV:GBX) in a deal valued at $43.7 million.

The company said the acquisition would increase its production by 60 per cent to more than 3,200 barrels of oil equivalent per day.

* CEO: Kevin Gibson.

* Head Office: Calgary.

* MacNeill's View: "This is a small junior that has shown very rapid growth on a per-share basis. They have a good group of properties, including a really neat discovery in British Columbia that they've been able to exploit and that they'll continue to develop. This is one of the higher-risk and higher-reward type of stocks that we own."

* MacNeill's Risk Rating: High.

* Web Watch: www.innovaexploration.com

* MacNeill's Edge Record (picks from November): +12.9 per cent. Best Pick: Peyto Exploration (TSX:PEY.UN) +33.4 per cent. Worst Pick: Tempest Energy (TSX:TMY.A) -12.7 per cent.

* Disclosure: MacNeill may own shares in the Sentry funds in which the featured stocks are held.

* NOTE: This feature is provided for information purposes. Investors are advised to do their own research and consult a qualified investment professional before making investment decisions.