FEATURED PRO: Josef Schachter is president of Schachter Asset Management, a Calgary firm that specializes in oil and gas research for institutional investors.

Schachter's Perspective: "We think the oil price will go to the $43 to $45 (US per barrel) range by mid-June or late June. We have been telling our clients that this will present one of the best buying opportunities in a couple of years and that they may want to load up on their favourite names at that time.

"My view was that we were always going to have this correction in oil and gas stocks because inventories normally build during the second quarter and the hedge funds were going to reverse their crazy bullishness, which sets up a buying opportunity."

First Star

* True Energy (TSX:TUI)

* Recent Price: $4.24.

* 52-Week Range: $1.62-$5.71.

* Schachter's 12-Month Target: $7.

* Snapshot: True Energy is an oil and gas company with operations in west-central Alberta and west-central Saskatchewan.

* CEO: Paul Baay.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 28.3; Revenue (last 12 mos), $67.9 million; 5-Yr Revenue Growth, 109.8 per cent; Earnings (last 12 mos), $9 million; Market Cap, $263.3 million; Shares Outstanding, 62.1 million.

* Schachter's View: "True beat our projected numbers in the first quarter and they're going to be doing some very high-impact drilling this summer. We think the company is going to have annualized cashflow by the end of the year of about $1 (per share). I think that in 2006, if they can't continue to do things to push the tax horizon out, the pressure to consider an income trust exit may be very strong."

* Schachter's Risk Rating: Medium.

* Web Watch: www.trueenergy.ab.ca

Second Star

* Centurion Energy (TSX:CUX)

* Recent Price: $12.36.

* 52-Week Range: $2.91-$19.

* Schachter's 12-Month Target: $20.

* Snapshot: Centurion is an international oil and gas company with natural gas operations spanning three countries - Egypt, Tunisia and Algeria.

* CEO: Said Arrata.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 77.3; Revenue (last 12 mos), $54.3 million; 5-Yr Revenue Growth, 24.9 per cent; Earnings (last 12 mos), $13.4 million; 5-Yr Earnings Growth, 10.2 per cent; Market Cap, $1.04 billion; Shares Outstanding, 84.1 million.

* Schachter's View: "When the stock got up to $19, we wanted it to back off. It has backed off and we think it's a fabulous buy here. Starting in September, they're going to have four rigs running in the western desert of Egypt and if they continue to have similar success to what they've had in the past, we think that would justify the stock going to $20."

* Schachter's Risk Rating: Medium.

* Web Watch: www.centurionenergy.com

Third Star

* Sterling Resources (TSXV:SLG)

* Recent Price: $1.80.

* 52-Week Range: $0.27-$2.41.

* Schachter's 12-Month Target: $3.

* Snapshot: Sterling is an international oil and gas exploration company with operations in the United Kingdom, Romania and France.

* CEO: Robert Welty.

* Head Office: Calgary.

* Vital Stats: Revenue (last 12 mos), $0; Earnings/Loss (last 12 mos), $800,000 Loss; Market Cap, $76.33 million; Shares Outstanding, 42.4 million.

* Schachter's View: "The CEO (Welty) is a very astute guy. This company has two main parts to their business. They have 11 concessions in the U.K.

North Sea. They're farming out some of those concessions and they should have some of those drilled as early as the fourth quarter of '05 or the first quarter of '06.

They also have a 1.5-million-acre concession in Romania and they're starting to drill that area. They have $28 million in cash in the bank. This is a higher-risk stock because they have no production."

* Schachter's Risk Rating: High.

* Web Watch: www.sterling-resources.com

Schachter's Edge Record: +87.3 per cent.

Best Pick: Tyler Resources (TSXV:TYS) +266.7 per cent.

Worst Pick: Endev Energy (TSX:ENE) +0.7 per cent.

Disclosure: Schachter  has provided research on all three of the featured stocks for investment firm Maison Placements Canada. Schachter personally owned shares recently in Sterling Resources.

(This feature is provided for information purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions.)