Jack Yetiv

UBS: Energy Producers to Benefit from Rising Oil Prices

Yes, I like PVX as well as PWE.

I don't like HTE because payout ratios have been bvery high because crack spreads have been sucking, and I expect them to continue to do so as demand for gasoline decreases as its price increases--and *I don't see this relationship changing anytime soon.

In the current environment, I much prefer pure E & P companies versus integrateds.

Jack

UBS: Energy Producers to Benefit from Rising Oil Prices

Although I like BTE and Vermillion as well, I think PWE is the "undiscovered" gem of the Canroys. It essentially DOUBLED its cash flow per unit in the quarter it just reported and cash flow for all of 2008 will be more than a double assuming oil at $107 and gas at $8.50.

With oil at $115 in 2008 (a projection with which I agree) and gas at $9 (which I think is low, mine would be $10), PWE will substantially MORE than double its cash flow this year.

Unlike BTE and Vermillion, both of which have run nicely in the past few weeks (especially BTE), PWE has just started to move, giving it more upside in my view than the others. In addition, PWE's dividend yield at 12% is much better than BTE or Vermillion's, offering yet another attraction to PWE and adding to total return.

I think all the Canroy oil and gas trusts will do very well in 2008, but I think total return on PWE is likely to exceed the average.

Jack Yetiv