FEATURED PRO: Andrew Boland is the small-cap oil and gas analyst for Calgary-based Peters & Company (www.petersco.com).

Boland’s Perspective: “Most of the small caps are pretty expensive. It has been a very popular sector to invest in over the last six months and, as a result, there are some pretty aggressive valuations although it’s nothing outrageous. There is value if you pick amongst the names that have been left behind a little. But, as always, there’s a reason that a stock trades cheaply. It has something in its history that people don’t like.

“With the war drums beating, it’s pretty difficult to ascertain what a normalized price level is. There is no doubt that oil and gas prices will be coming down eventually because the spectre of war can’t be there forever. I think once that (attack on Iraq) happens, if it does, and if we see that there is no disruption to oil supplies, then we can expect prices to come down pretty hard. As for natural gas prices, I think they’re pretty expensive right now. I think 18 months out, I think there’s some compelling reasons to believe that gas stocks may have a good performance but, frankly, over the next six months the economy is going to govern everything and the economy is not doing too well.”

(Boland says Peters & Company’s commodity price forecasts for 2002 and 2003 have remained the same as three months ago - $3 US NYMEX (mcf) for natural gas and $22 US per barrel for oil.)



FIRST STAR
* Atlas Energy (AED-TSX)
* Recent Price: $2.35.
* 12-Month Range: $1.25-$2.60.
* Boland’s 12-Month Target: Since Peters & Company is providing fairness opinion to the Atlas shareholders, Boland can not discuss specifics such as target price.
* Snapshot: Atlas is an oil and gas exploration and
production company that is focused on Alberta assets. The company recently announced plans to amalgamate with Castle River Resources, a private company created by the former management of Amber Energy, which was taken over by Alberta Energy Company which in turn merged with EnCana.
* CEO: Lloyd Arnason.
* Head Office: Calgary.
* Vital Stats: Price/Earnings Ratio, 32.3; Revenue (last 12 mos), $17.8 million; 5-Yr Revenue Growth, 61.9%; Profit (last 12 mos), $1.3 million; Market Cap, $51.46 million; Shares Outstanding, 21.9 million.
* Boland’s Comment: “They’re mainly gas producers in southern Alberta but the (incoming) management group is rolling in their private company and will bring some large land deals in northern and northwestern Alberta. I think that will be significant for a company this size. The new CEO will be Richard Lewanski who ran Amber Energy.”
* Boland’s Risk Rating: High.
* Web watch: www.atlasenergy.com



SECOND STAR
* Ascot Energy (AER-TSX Venture)
* Recent Price: .42.
* 12-Month Range: .28-.52.
* Boland’s Call: Buy.
* Boland’s 12-Month Target: .48.
* Snapshot: Ascot is a junior oil and gas company with operations in east-central Alberta.
* CEO: Jim Saunders.
* Head Office: Calgary (11 employees).
* Vital Stats: Revenue (last 12 mos), $11.0 million; 5-Yr Profit Growth, 122.4%; Profit/Loss (last 12 mos), $5.8 million loss; Market Cap, $51.2 million; Shares Outstanding, 119.1 million.
* Boland’s Comment: “This company is mainly focused in southern and eastern Alberta and they’re about 60 to 65 per cent weighted in natural gas. The CEO (Saunders) came from Ionic Energy which was a successful story of the last cycle as a company that was taken over. They have a very strong management team, a large undeveloped land base and the stock should have some significant upside from here.”
* Boland’s Risk Rating: High.
* Web watch: www.ascotenergy-ltd.com



THIRD STAR
* Cequel Energy (CQL-TSX)
* Recent Price: $4.25.
* 12-Month Range: $3.20-$4.80.
* Boland’s 12-Month Target: $4.75.
* Snapshot: Sequel is an oil and gas company with operations in Western Canada. The company recently
purchased 32.5 million acres of land in northern Alberta.
* CEO: Don Archibald.
* Head office: Calgary (3 employees).
* Vital Stats: Revenue (last 12 mos), $17.96 million; Profit/Loss (last 12 mos), $1.35 million loss; Market Cap, $224.57 million; Shares Outstanding, 53.7 million.
* Boland’s Comment: “I like the management. This company is run by Don Archibald, formerly the CEO of Cypress Energy. They’re about 65 to 70 per cent weighted in natural gas.”
* Boland’s Risk Rating: Medium.
* Web watch: www.cequelenergy.com
* Boland’s Record: (with June 13 picks): -1%. Best Pick: Storm Energy +21%. Worst Pick: Triquest Energy -18%.

* Disclosure: Boland says he personally owns shares in Atlas Energy and Peters & Company has had financial dealings with all three featured companies.