Natural Gas is Contrarian Choice for Fuel (COSWF, SJT, SBR, MTR)

Units of buy-recommended Canadian Oil Sands Trust (COSWF) would be split 5 for 1 after approval at the annual meeting on April 25. The ratio was just announced for the expected action first proposed a few months ago. The trust has 35.5% of Syncrude, the largest oil sands mining facility that is increasing capacity by mid year to 350,000 barrels daily from 250,000 bd.

Meanwhile, natural gas is the contrarian choice of fuel currently trading at the low end of its range relative to oil. A rebound may be underway with six-year natural gas futures trading a few pennies above the 40-week average. The contrarian trust stocks trading below their 200-day average are San Juan Basin Royalty Trust (SJT), Sabine Royalty Trust (SBR) and Mesa Royalty Trust (MTR). Meanwhile, we currently project a median distribution yield for the next twelve months ended March 31, 2007 of 9.0% for U.S. royalty trusts. Latest declarations indicate a median distribution yield of 9.4% for Canadian trusts.

Kurt Wulff's McDep Associates offers realtime, independent research services for investors in the energy and utilities sectors. For more information, go to www.mcdep.com or email Mr. Wulff at [e-mail].

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