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Please see important disclosures on pages 4 to 8.

July 21, 201

Oil and Gas Sector Update

COMMODITY PRICE FORECASTS UPDATE ANDCORRESPONDING TARGET ADJUSTMENTS

We have revised our commodity price forecasts toreflect current market conditions. The table onPage 2 summarizes the changes in our commodityprice forecast.

We have increased our crude forecasts to reflectthe continued risk associated with geopoliticalissues in the Middle East and North Africa.

Our natural gas price forecast remains unchangedas it continues to reflect current marketconditions.

We have updated our evaluation on selectedcompanies based on our revised commodity priceforecasts. These selected companies have minor orno operational changes which would affect expectedproduction, and the changes in the price forecasts donot cause a material change in capital spending plans.We have provided a table on Page 3 highlighting keychanges in our evaluation.

We have also adjusted our foreign exchangeforecast (See Page 2 for summary table).

ANALYST: STEPHEN CALDERWOOD,P.ENG,MBAstephen.calderwood@jenningscapital.com+1.403.292.9483

ANALYST: GREGORY CHORNOBOY,P.ENG,MBAgreg.chornoboy@jenningscapital.com+1.403.292.9485

ANALYST: DAVID RICCIARDI,CFAdavid.ricciardi@jenningscapital.com+1.403.262.0906

ASSOCIATE: JAMES HUMEN,CAjames.humen@jenningscapital.com+1.403.292.9487

ASSOCIATE: TRENTON LATOS,P.ENG,CFAtrenton.latos@jenningscapital.com+1.403.262.0902

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The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or completeand it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings Capital Inc. and/oremployees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such securities. This report is not to beconstrued as an offer to sell or solicitation to buy securities. Member CIPF. Jennings Capital (USA) Inc. is a member of SIPC.

Revised Commodity Price Forecasts

Overall, we have increased our price forecasts for crude oil and maintained our natural gasprice forecast.

Revised Foreign Exchange Rates

US$/C$ Q1 Q2 Q3 Q4 Annual

2011 1.014 1.033 1.036 1.031 1.029

2012 1.026 1.020 1.015 1.010 1.018

2013 1.005 1.000 0.995 0.990 0.998

2014 0.980 0.971 0.962 0.952 0.966

LT 0.952 0.952 0.952 0.952 0.952

Jennings Foreign Exchange Forecasts

Effective 21-Jul-11 7-Mar-11

2011 Q1A $94.46 $93.50

2011 Q2A $102.28 $99.002011 Q3 $97.50 $96.50

2011 Q4 $98.50 $94.00

2011 $98.25 $95.752012 $100.00 $92.25

2013 $100.00 $91.75

2014 $100.00 $91.502015 $100.00 $93.50

2011 Q1A $105.21 $103.502011 Q2A $116.80 $105.00

2011 Q3 $115.00 $102.50

2011 Q4 $112.00 $100.002011 $112.25 $102.75

2012 $110.00 $98.25

2013 $107.00 $95.75

2014 $104.00 $93.50

2015 $102.00 $93.50

2011 Q1A $88.60 $87.50

2011 Q2A $102.39 $96.00

2011 Q3 $95.00 $95.00

2011 Q4 $94.50 $93.00

2011 $95.00 $92.88

2012 $98.00 $93.50

2013 $100.00 $95.00

2014 $102.50 $95.00

2015 $103.00 $97.00

Jennings Crude Price Forecasts

Crude Oil: WTI (US$/Bbl)

Crude Oil: Brent (US$/Bbl)

Crude Oil: Edmonton Par (CDN$/Bbl)

Effective 21-Jul-11 7-Mar-11

2011 Q1A $4.18 $4.25

2011 Q2A $4.36 $4.00

2011 Q3 $4.25 $4.25

2011 Q4 $4.50 $4.50

2011 $4.25 $4.25

2012 $4.75 $4.752013 $5.50 $5.50

2014 $6.00 $6.002015 $6.25 $6.25

2011 Q1A $3.77 $3.75

2011 Q2A $3.89 $3.50

2011 Q3 $3.75 $3.75

2011 Q4 $4.00 $4.00

2011 $3.75 $3.752012 $4.50 $4.50

2013 $5.25 $5.25

2014 $5.75 $5.752015 $6.00 $6.00

Natural Gas: AECO (CDN$/MMBtu)

Jennings Natural Gas Price Forecasts

Natural Gas: Henry Hub (US$/MMBtu)

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Jennings Capital Inc. Research Disclosures

U.S. Client Disclosures

This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory Organization of Canada and the CanadianInvestor Protection Fund and a Participating Organization of the Toronto Stock Exchange and the TSX Venture Exchange. Jennings Capital Inc. is anaffiliate of Jennings Capital (USA) Inc. Jennings Capital (USA) Inc. accepts responsibility for the contents of this research report, subject to the terms

and limitations as set out above. Jennings Capital (USA) Inc. is a registered broker-dealer with the Securities and Exchange Commission and a membeof the National Association of Securities Dealers Inc.

THE FIRM THAT PREPARED THIS REPORT MAY NOT BE SUBJECT TO U.S. RULES WITH REGARD TO THE PREPARATION OF RESEARCHREPORTS AND THE INDEPENDENCE OF ANALYSTS.

This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Any transaction in thesesecurities by U.S. persons must be effected through either Westminster Securities Corporation, a U.S. broker-dealer registered with the Securities andExchange Commission and a member of the National Association of Securities Dealers Inc. and the New York Stock Exchange Inc. or through JenningsCapital (USA) Inc., A U.S. broker-dealer registered with the Securities and Exchange Commission and a member of the National Association oSecurities Dealers Inc.

U.S. PERSONS

This research report was prepared by an affiliate of Jennings Capital (USA) Inc. or other person that may not be registered as a broker-dealer in theUnited States. The firm that prepared this report may not be subject to U.S. rules regarding the preparation of research reports and the independence oresearch analysts.

Subject to the limitations on liability described above, Jennings Capital (USA) Inc. takes responsibility for the content of this research report inaccordance with Rule 15a-6 under the U.S. Securities Exchange Act of 1934, as amended. All transactions by U.S. persons in securities discussed inthis report must be performed through Jennings Capital (USA) Inc.

U.K. Client Disclosures

This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory Organization of Canada and the CanadianInvestor Protection Fund and a Participating Organization of the Toronto Stock Exchange and the TSX Venture Exchange.

JENNINGS CAPITAL IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THEINDEPENDENCE OF ANALYSTS.

The contents hereof are intended solely for the use of, and may only be issued or passed on to persons described in part VI of the Financial Servicesand Markets Act 2000 (Financial Promotion) Order 2001.

This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Stock Ratings

Speculative Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12 months; however,there is material event risk associated with the investment.

Buy: The stock is expected to provide a total return of 10% to 50% over the current trading price over the next 12 months.

Hold: The stock is expected to provide a total return of 0% to 10% over the current trading price over the next 12 months.

Sell: The stock is expected to provide a negative total return over the next 12 months.

Risk Ratings

Low/Average Risk Stocks with less volatility than the market as a whole, with solid balance sheets and dependable earnings.

Above Average Risk Stocks with more volatility than the market. Financial leverage is considerable but not threatening, earnings are more erraticor other quality concerns regarding accounting, management track record, and similar issues.

Speculative Stocks of unproven companies or ones with very high financial leverage, suspicious accounting, or with other significant qualityconcerns. A speculative risk rating implies at least the possibility of financial distress leading to a restructuring.

Distribution Ratings: Out of approximately 93 stocks in the Jennings Capital Inc. coverage universe, the ratings distribution is as follows:

BUY 51%

SPECULATIVE BUY 39%

HOLD 4%

SELL 0%

TENDER TO OFFER 0%

UNDER REVIEW 4%

RESTRICTED 2%

Revised Monthly

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Security Abbreviations: NVS (non-voting shares); RVS (restricted voting shares); RS (restricted shares); SVS (subordinate voting shares); MV(multiple voting shares).

Quarterly Recommendation Hierarchy: Is a ranking distribution identifying the percentage of total, number, and the investment banking relationship(%) for all recommendation categories that can be found on the Jennings Capital Inc. website (www.JenningsCapital.com).

Analyst Stock Holdings: Equity Research analysts, associates and members of their households are permitted to invest in securities covered bythem. No Jennings Capital Inc. analyst, associate or employee involved in the preparation of an analyst report is permitted to effect a trade in thesecurity of an issuer whereby there is an outstanding recommendation for a period of 30 calendar days before and 5 calendar days after issuance ofthe research report

Compensation: The compensation of the analyst and/or associate who prepared this research report is based upon in part, the overall revenues andprofitability of Jennings Capital Inc. Analysts are compensated on a salary and bonus system. Some factors affecting compensation including theproductivity and quality of research, support to institutional, retail and investment bankers, net revenues to the equity and investment banking revenueas well as compensation levels for analysts at competing brokerage dealers. Analysts are not directly compensated for specific Investment Bankingtransactions.

Jennings Capital Inc. Relationships: Jennings Capital Inc. may receive or seek compensation for investment banking services from all issuers underresearch coverage within the next 3 months.

Jennings Capital Inc. or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistentwith the reports conclusions.

Analyst Certification

I, Greg Chornoboy, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I

also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations oviews in this report.

I, David Ricciardi, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations oviews in this report.

I, Trenton Latos, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I alsocertify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations orviews in this report.

Company Specific Disclosures

This is an industry related publication.Of the companies included in this report, the following Important Disclosures apply.

Company Name Ticker/Exchange Discl.Bankers Petroleum Ltd. TSX-BNK 1,2

Brownstone Energy Inc. TSXV-BWN 2

Calvalley Petroleum Inc. TSX-CVI.A 1

Canacol Energy Ltd. TSXV-CNE

Coastal Energy Company TSXV-CEN

Corridor Resources Inc. TSX-CDH 1,3

Delphi Energy Corp. TSX-DEE

Equal Energy Ltd. TSX-EQU 2

Gran Tierra Energy Inc. TSX-GTE

Midway Energy Ltd. TSX-MEL

Novus Energy Inc. TSXV-NVS

Pacific Rubiales Energy Corp. TSX-PRE 3

Palliser Oil & Gas Corporation TSXV-PXL 2

Petroamerica Oil Corp. TSXV-PTA 2

Petrodorado Energy Ltd. TSXV-PDQ

PetroMagdalena Energy Corp. TSXV-PMD 2,3

Petrominerales Ltd. TSX-PMGPrimeline Energy Holdings Inc. TSXV-PEH 1

Quetzal Energy Ltd. TSXV-QEI 2

Reliable Energy Ltd. TSXV-REL

Renegade Petroleum Ltd. TSXV-RPL 2

Sea Dragon Energy Inc. TSXV-SDX

Suroco Energy Inc. TSXV-SRN

Terrex Energy Inc. TSXV-TER

Torquay Oil Corp. TSXV-TOC'A 2

Tuscany International Drilling Inc. TSX-TID 2,3,7

Valeura Energy Inc. TSXV-VLE 1

WestFire Energy Ltd. TSX-WFE 2

Wild Stream Exploration Inc. TSXV-WSXWinstar Resources Ltd. TSX-WIX 1

1 The Analyst or a member of the Analysts household

has a financial interest in the securities of this

Company.

2 Jennings Capital Inc., Jennings Capital (USA) Inc.

and/or any of their affiliates has managed or co-

managed an offering of securities or has been engaged

for a fee by this Company in the last 12 months.

3 The Analyst has had an onsite visit with this

Company. (The extent to which the Analyst has viewed

the material operations of this Company is available on

request.)

4 The Analyst has been compensated for travel

expenses incurred as a result of an onsite visit with this

Company.

5 Jennings Capital Inc. or Jennings Capital (USA) Inc.

is a market maker for the securities of the subject

issuer.

6 Jennings Capital Inc. or Jennings Capital (USA) Inc.beneficially owns more than 1% of any class of

common equity of this Company.

7 Jennings Capital Inc. is restricted on this company at

the time of publication.

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Note: We initiated coverage onAlange Energy Corp. on November 6, 2009 with a BUY recommendation, an ABOVE AVERAGE risk rating and atarget price of C$0.85. Share price at that time was C$0.54. In our Sector Valuation Update dated January 15, 2010, we increased our target price toC$0.90. Share price at that time was C$0.66. On May 5, 2010 we decreased our target price to C$0.80. Share price at that time was C$0.425. In ouSector Valuation Update dated July 13, 2010, we decreased our target price to C$0.75. Share price at that time was C$0.35. On August 9, 2010 weincreased our target price to C$0.80. Share price at that time was C$0.44. On September 1, 2010 we decreased our target price to C$0.65. Shareprice at that time was C$0.375. In our Sector Valuation Update dated October 19, 2010, we increased our target price to C$0.75. Share price at thatime was C$0.59. On January 13, 2011, we placed our recommendation, target and risk rating all UNDER REVIEW. On January 13, 2011, we revisedour recommendation to SPECULATIVE BUY and our risk rating to SPECULATIVE, and we decreased our target price to C$0.40. Share price at thatime was C$0.32. On May 3, 2011, we downgraded our recommendation to HOLD and reduced our target price to C$0.30. Share price at that time wa

C$0.28. On July 19, 2011, Alange Energy Corp. changed its name toPetromagdalena Energy Corp. andconsolidated its shares on a one-forseven basis. We adjusted our 12-month target to C$2.10 per share to reflect the one-for-seven share consolidation and revised our recommendation toSPECULATIVE BUY. Post-consolidation share price at that time was C$1.30.

Note:We initiated coverage onBankers Petroleum Ltd. on April 1, 2009 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGE riskrating and a C$2.35 target price. Share price at that time was C$1.76. On May 7, 2009 we increased our target price to $3.00. Share price at that timewas C$1.84. On July 13, 2009 we increased our target price to C$3.25. Share price at that time was C$1.74. On August 18, 2009 we increased ourtarget price to C$4.50. Share price at that time was C$3.38. On October 7, 2009 we increased our target price to C$5.75. Share price at that time wasC$4.50. On January 13, 2010 we increased our target price to C$8.25. Share price at that time was C$6.06. On March 3, 2010 we increased our targetprice to C$9.25. Share price at that time was C$6.06. On April 13, 2010 we increased our target price to C$11.25. Share price at that time was C$9.12.On July 21, 2010 we upgraded our recommendation toBUY, but reduced our target price to C$10.50. Share price at that time was C$7.36.

Note:We initiated coverage onBrownstone Ventures Inc. on January 12, 2011 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGErisk rating and a C$1.75 target price. Share price at that time was C$0.96. On January 18, 2011, Brownstone Ventures Inc. changed its name toBrownstone Energy Inc.

Note:We initiated coverage ofCalvalley Petroleum Inc. on January 9, 2006 with a 12-month target of $6.75 and aBUYrecommendation. The Share

price at the time was $4.52. On February 10, 2006, we increased our target to $8.35, while maintaining our BUY recommendation. Share price was$6.70. On April 20, 2006, we increased our 12-month target to $9.25 with a BUY recommendation. The share price was $8.19. July 25, 2006, weincreased our 12-month target to $12.60 and a STRONG BUY recommendation. Share price was $6.19. On November 2, 2006, we decreased outarget to $11.85 while maintaining our STRONG BUY recommendation. Share price at the time was $7.55. On December 13, 2006, we decreased ourecommendation to BUY while maintaining our target of $11.85. On January 15, 2007, we increased our recommendation to STRONG BUY whilemaintaining our target of $11.85. On March 19, 2007, we reduced our target to $11.10, while maintaining a STRONG BUY recommendation. On Augus28, 2007, we reduced our target to $8.10, and our recommendation toSPECULATIVE BUY. On April 14, 2008 we reduced our target to C$6.80. Shareprice at the time was C$3.70. On October 29, 2008, we decreased our target price to C$5.50. Share price at that time was C$1.33. On December 2,2008, we reduced our target price to C$3.00. Share price at that time was C$1.45. On February 27, 2009, we reduced our target price to C$2.25. Shareprice at that time was C$1.15. On May 14, 2009, we increased our target price to C$3.00. Share price at that time was C$1.59. On July 6, 2009, weincreased our target price to C$3.25. Share price at that time was C$1.90. On January 15, 2010, we increased our target price to C$3.50. Share price athat time was C$2.39. On February 16, 2010, we increased our target to C$4.75. Share price at that time was C$2.57. On August 23, 2010, weincreased our target price to C$5.25. Share price at that time was C$3.24. On October 19, 2010, we increased our target price to C$5.50. Share priceat that time was $3.60. On January 11, 2011 we increased our target price to C$7.00. Share price at that time was C$4.95. On February 23, 2011 weincreased our target price to C$8.25. Share price at that time was $3.95. On May 11, 2011, we reduced our target to C$7.75. Share price at that timewas C$2.77. On July 13, 2011, we reduced our target to C$7.00. Share price at that time was C$2.21.

Note:We initiated coverage onCanacol Energy Ltd. on December 16, 2009 with aBUYrecommendation, an ABOVE AVERAGE risk rating and atarget price of C$.75. Share price at that time was C$0.49. In our Sector Valuation Update dated January 15, 2010, we increased our target price toC$0.85. Share price at that time was C$0.62. On July 2, 2010 we downgraded our recommendation toHOLDan, but increased our target price toC$0.90. Share price at that time was C$0.90. In our Sector Valuation Update dated July 13, 2010, we decreased our target price to C$0.85. Shareprice at that time was C$0.89. On August 10, 2010, we increased our target price to C$1.25. Share price at that time was C$1.22. On August 27, 2010,we increased our target price to C$1.35. Share price at that time was C$1.35. In our Sector Valuation Update dated October 19, 2010, we increasedour target price to C$1.55. Share price at that time was C$1.51. On October 21, 2010, we increased our target price to C$1.70. Share price at that timewas C$1.64. On October 27, 2010, we increased our target to C$1.90 and upgraded our recommendation toBUY. Share price at that time was C$1.67On February 24, 2011, we increased our target price to C$2.00. Share price at that time was C$1.61. On April 25, 2011, we decreased our target priceto C$1.85. Share price at that time was C$1.21.

Note:We initiated coverage onCoastal Energy Companyon November 17, 2010 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGErisk rating and a C$7.50 target price. Share price at that time was C$4.68. On December 9, 2010, we increased our target price to C$8.00. Share priceat that time was C$5.72. On January 11, 2011 we increased our target price to C$8.75. Share price at that time was $6.72. On March 7, 2011, weincreased our target to C$9.50. Share price at the time was C$7.32. On May 17, 2011, we increased our target to C$11.25. Share price at the time wasC$6.15. On July 4, 2011, we increased our target to C$14.25. Share price at the time was C$8.46.

Note:On March 28, 2006 we initiated coverage onCorridor Resources Inc. with aBUYrecommendation and a C$5.80 target price. Share price atthat time was C$5.00. On May 9, 2006 we introduced a risked longer-term potential target price of C$10.50. Share price at that time was C$5.37. OnAugust 17, 2006 we raised our target price to C$6.60. Share price at that time was C$5.80. On October 12, 2006 we lowered our target price toC$5.95. Share price at that time was C$5.35. On January 22, 2007 we raised our target price to C$7.15 and introduced a risk rating of ABOVEAVERAGE as a result of additions to our rating system. Share price at that time was C$5.60. On April 4, 2007, we increased our target price to C$9.90.Share price at that time was C$8.70. On July 5, 2007 we raised our target price to C$13.65, while maintaining our BUY recommendation. Share priceat that time was C$11.45. On December 18, 2007 we decreased our target price to C$12.30. Share price at that time was C$7.40. On April 1, 2008 wereduced our target price to C$11.25. Share price at that time was $6.64. On October 16, 2008 we reduced our target price to C$9.00. Share price atthat time was C$2.15. On December 2, 2008 we reduced our target price to C$4.25. Share price at that time was C$2.34. On March 27, 2009 wedecreased our target price to C$3.50. Share price at that time was C$2.05. On April 14, 2009, in our Oil and Gas Sector Valuation Update, wedecreased our target price to C$3.00. Share price at that time was C$1.98. On September 1, 2009 we downgraded our recommendation toSPECULATIVE BUY. Share price at that time was C$2.57. On September 16, 2009 we increased our target price to C$4.15. Share price at that timewas C$3.30. On November 30, 2009 we increased our target price to C$5.25. Share price at that time was C$4.17. On December 8, 2009 weincreased our target price to C$6.50. Share price at that time was C$5.10. On February 22, 2010 we decreased our target price to C$6.00. Share price

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at that time was C$4.41. On April 12, 2010 we increased our target price to C$6.25. Share price at that time was C$5.31. On October 19, 2010 weincreased our target price to C$8.75. Share price at that time was C$6.10. On December 7, 2010 we decreased our target price to C$7.25. Share priceat that time was C$5.19. On April 5, 2011, we decreased our target price to C$6.50. Share price at that time was C$5.19. On June 1, 2011, wedecreased the target to C$4.00. Share price at that time was C$3.18.

Note:We initiated coverage onDelphi Energy Corp. on March 5, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targetprice of C$3.25 per share. Share price at that time was C$2.79. In our Sector Valuation Update dated October 19, 2010, we increased our target priceto C$3.25. Share price at that time was C$2.27.

Note:We initiated coverage onEnterra Energy Truston May 27, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targeprice of C$3.25 per share. Share price at that time was C$2.79. On June 1, 2010 the Company converted from a Trust to a Corporation and changed itsname toEqual Energy Ltd. Each trust unit was exchanged for one-third of one common share, and, accordingly, our target price became C$9.75. Thecommon shares began trading on a post-consolidation basis on the New York Stock Exchange under the symbol EQU, on June 1, 2010, and on theToronto Stock Exchange, also under the symbol EQU, on June 3, 2020. On June 8, 2010 we increased our target price to C$10.25. Share price at thatime was C$7.40. On July 19, 2010 we decreased our target price to C$9.50. Share price at that time was C$5.63. On October 6, 2010, we decreasedour target price to C$8.75. Share price at that time was C$4.66. In our Sector Valuation Update dated March 7, 2011, we increased our target price toC$9.00. Share price at that time was C$7.05. On March 31, 2011, we increased our target price to C$11.50. Share price at that time was C$7.85. OnMay 30, 2011, we increased our target price to C$12.25. Share price at that time was C$7.20.

Note:We initiated coverage onGran Tierra Energy Inc. on September 14, 2009 with aBUYrecommendation, an ABOVE AVERAGE risk rating and aC$5.25 target price. Share price at that time was C$4.38. In our Oil and Gas Sector Valuation Updated on October 19, 2009, we increased our targetprice to C$6.00. Share price at that time was C$5.00. In our Sector Valuation Update dated January 15, 2010, we increased our target price to C$6.50.Share price at that time was C$5.41. In our Sector Valuation Update dated July 13, 2010, we decreased our target price to C$6.25. Share price at thattime was C$5.42. On July 15, 2010 we increased our target price to C$7.25. Share price at that time was C$5.46. On August 26, 2010 we increasedour target price to C$8.00. Share price at that time was C$6.40. On August 31, 2010 we increased our target price to C$8.25. Share price at that timewas C$6.61. In our Sector Valuation Update dated October 19, 2010, we increased our target price to C$8.75. Share price at that time was C$7.71. OnOctober 25, 2010, we increased our target price to C$9.50. Share price at that time was C$7.57. On January 18, 2011, we increased our target price toC$10.00. Share price at that time was C$8.29. On February 25, 2011, we increased our target price to C$10.50. Share price at that time was C$8.78.

Note:We initiated coverage onMidway Energy Ltd. on March 24, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targetprice of C$3.95. Share price at that time was C$3.20. On July 13, 2010 in our Section Valuation Update, we decreased the target price to C$3.75.Share price at that time was C$3.07. On September 23, 2010, we increased our target price to C$4.25. Share price at that time was C$3.45. In ourSector Valuation Update dated October 19, 2010, we increased our target price to C$4.50. Share price at that time was C$3.58.On January 21, 2011we increased our target price to C$5.50. Share price at that time was C$5.01. On February 1, 2011 we increased our target price to C$6.00. Shareprice at that time was $4.42.

Note:We initiated coverage onNovus Energy Inc. on February 23, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targetprice of C$1.20 per share. Share price at that time was C$0.88. On July 14, 2010 we decreased our target price to C$1.10. Share price at that time wasC$0.83. On August 30, 2010 we decreased our target price to C$1.00. Share price at that time was C$0.81. In our Sector Valuation Update datedOctober 19, 2010, we increased our target price to C$1.05. Share price at that time was C$0.88. On our Sector Valuation Update dated January 11,2011 we increased our target price to C$1.10. Share price at that time was C$1.04. On February 1, 2011 we increased our target price to C$1.25.Share price at that time was C$1.14. On February 3, 2011 we increased our share price to C$1.40. Share price at that time was C$1.30. On our SectorValuation Update dated March 7, 2011 we increased our target price to C$1.45. Share price at that time was C$1.37.

Note:We initiated coverage onPalliser Oil & Gas Corp. on March 24, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and atarget price of C$2.00 per share. Share price at that time was C$1.27. In our Sector Valuation Update dated January 11, 2011 we increased our targetprice to C$2.10. Share price at that time was C$1.49. On January 27, 2011 we increased our target price to C$2.35. Share price at that time wasC$1.75. On February 1, 2011 we increased our target price to C$2.85. Share price at that time was C$1.95. On March 25, 2011 we increased our targeprice to C$3.00. Share price at that time was C$1.87.

Note:We initiated coverage onPacific Rubiales Energy Corp. on June 30, 2009 with aBUYrecommendation, an AVERAGE risk rating and anC$11.75 target price. Share price at that time was C$9.60. On July 28, 2009 we increased our target price to $13.50. Share price at that time wasC$11.09. On September 8, 2009 we increased our target price to C$16.25. Share price at that time was C$13.80. In our Oil and Gas Sector ValuationUpdated on October 19, 2009, we increased our target price to C$18.75. Share price at that time was C$14.00. On November 16, 2009 we increasedour target price to C$20.00. Share price at that time was C$15.36. In our Sector Valuation Update dated January 15, 2010, we increased our targetprice to C$21.75. Share price at that time was C$15.00. On March 16, 2010 we increased our target price to C$24.50. Share price at that time wasC$19.00. On April 26, 2010 we increased our target price to C$29.25. Share price at that time was C$21.27. In our Sector Valuation Update dated July13, 2010, we decreased our target price to C$29.00. Share price at that time was C$24.16. On October 13, 2010 we increased our target price toC$34.50. Share price at that time was C$30.80. In our Sector Valuation Update dated October 19, 2010, we increased our target price to C$36.00.Share price at that time was C$29.75. In our Sector Valuation Updated dated January 11, 2011, we increased our target price to C$37.00. Share price

at that time was C$31.47. On January 12, 2011, we increased our target price to C$40.00. Share price at the time was C$33.79. On March 7, 2011, inour Sector Update, we increased the target to C$41.00. Share price at that time was C$34.51.

Note:We initiated coverage onPetroamerica Oil Corp. on October 6, 2010 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGE riskrating and a target price of $0.80. Share price at that time was C$0.295. In our Sector Valuation Update dated October 19, 2010, we increased ourtarget price to C$0.85. Share price at that time was C$0.42. On November 29, 2010, we decreased our target to C$0.80. Share price at that time waC$0.475. In our Sector Valuation Update dated January 11, 2011, we increased our target to C$0.85. Share price at that time was C$0.64. On March 72011, we decreased our target price to C$0.75. Share price at that time was C$0.455. On May 25, 2011, we decreased our target price to C$0.20 andrevised our risk rating to SPECULATIVE. Share price at that time was C$0.17.

Note:We initiated coverage onPetrodorado Energy Ltd. on November 23, 2010 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGErisk rating and a target price of $1.00. Share price at that time was C$0.60.

Note:We initiated coverage onPetrominerales Ltd. on January 30, 2009 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targetprice of C$9.00 per share. Share price at that time was C$6.15. On March 4, 2009 we increased our target price to C$11.50. Share price at that timewas C$9.59. On April 28, 2009 we increased our target price to C$14.25. Share price at that time was C$10.62. On August 10, 2009 we decreased our

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target price to C$14.00. Share price at that time was C$12.30. On October 20, 2009 we downgraded our recommendation toHOLDand increased ourtarget price to C$16.50. Share price at that time was C$16.30. On January 12, 2010 we increased our target price to C$22.00. Share price at that timewas C$21.76. On February 16, 2010 we upgraded our recommendation toBUYand increased our target price to C$30.50. Share price at that time wasC$26.55. On February 22, 2010 we increased our target price to C$32.00. Share price at that time was C$28.57. On March 29, 2010 we increased ourtarget price to C$38.25. Share price at that time was C$31.52. In our Sector Valuation Update dated July 13, 2010, we decreased our target price toC$36.00. Share price at that time was C$23.77. On September 13, 2010 we decreased our target price to C$32.50. Share price at that time wasC$24.95. On October 19, 2010, in our Sector Valuation Update, we increased our target price to C$35.00. Share price at that time was C$25.70. OnDecember 14, 2010, we increased our target to C$36.00. Share price at that time was C$32.15. On January 5, 2011, we increased our target toC$41.00. Share price at that time was C$33.31. In our sector valuation update dated January 11, 2011, we increased our target to C$43.00. Share

price at that time was C$35.47. On March 7, 2011, in our Sector Update, we increased the target to C$44.00. Share price at that time was C$39.77.Note:We initiated coverage onPrimeline Energy Holdings Inc. on July 14, 2006 with aSPECULATIVE BUYrecommendation and a C$4.10 targeprice. Share price at that time was C$2.50. On May 4, 2007 we introduced an ABOVE AVERAGE risk rating due to additions to our rating system. Shareprice at that time was C$2.25. On September 26, 2007 we decreased our target price to C$3.75. Share price at that time was C$1.91. On December 22008 we reduced our target price to $1.00. Share price at that time was C$0.26. On December 9, 2008 we introduced an Unrisked Long Term PotentiaTarget of C$3.75. Share price at that time was C$0.35. On February 2, 2010 we increased our target price to C$1.50. Share price at that time wasC$0.64. On March 19, 2010 we increased our target price to C$2.00. Share price at that time was C$1.08. On June 4, 2010 we decreased our targeprice to C$0.70. Share price at that time was C$0.50.

Note:We initiated coverage onQuetzal Energy Ltd. on December 14, 2010 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGE riskrating and a target price of $0.40. Share price at that time was C$0.185. On February 7, 2011, we decreased our target to C$0.30. Share price at thattime was C$0.135.

Note:We initiated coverage onReliable Energy Ltd. on May 2, 2011 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a target priceof $0.60. Share price at that time was C$0.46.

Note:We initiated coverage onRenegade Petroleum Ltd. on September 20, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and

a target price of C$5.25 per share. Share price at that time was C$3.35. In our Sector Valuation Update dated October 19, 2010, we increased ourtarget price to C$5.75. Share price at that time was C$3.70. On November 30, 2010, we decreased our target to C$5.25. Share price at that time wasC$4.00. On February 1, 2011 we increased our target price to C$6.00. Share price at that time was C$4.42.

Note:We initiated coverage onSea Dragon Energy Inc. on March 19, 2010 with aSPECULATIVE BUYrecommendation, an ABOVE AVERAGE riskrating and a target price of C$0.75. On July 13, 2010, we decreased our target price to C$0.60. Share price at that time was C$0.28. On January 132011 we decreased our target price to C$0.50. Share price at that time was $0.31.

Note: We initiated coverage onSuroco Energy Inc. on March 8, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targetprice of C$0.85 per share. Share price at that time was C$0.63. On April 6, 2010, we increased our target price to C$0.90. Share price at that time wasC$0.72. On April 23, 2010, we placed our recommendation, target and risk rating all UNDER REVIEW. On July 20, 2010, we resumed coverage with aBUYrecommendation, a target price of C$1.00 and a risk rating of ABOVE AVERAGE. Share price at that time was C$0.43. On September 10, 2010,we decreased our target price to C$0.90. Share price at that time was C$0.45. On October 5, 2010, we decreased our target price to C$0.85. Shareprice at that time was C$0.475. In our Sector Valuation Update dated October 19, 2010, we increased our target price to C$0.90. Share price at thattime was C$0.48. On October 27, 2010, we decreased our target to C$0.85. Share price at that time was C$0.61. On January 17, 2011, we increasedour target price to C$1.25. Share price at that time was C$0.86. On May 10, 2011, we increased our target to C$1.40. Share price at that time wasC$0.78.

Note:We initiated coverage onWestFire Energy Ltd. on March 18, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk rating and a targeprice of C$9.75 per share. Share price at that time was C$8.20. On May 4, 2010 we increased our target price to C$10.75. Share price at that time wasC$8.13. In our Sector Valuation Update dated July 13, 2010, we decreased our target price to C$9.75. Share price at that time was C$6.11. On Augus17, 2010, we decreased our target price to C$9.25. Share price at that time was C$5.25. On February 1, 2011 we increased our target price to C$9.75Share price at that time was C$8.00. On March 9, 2011 we increased our target price to C$11.75. Share price at that time was C$8.91.

Note:We initiated coverage report onWild Stream Exploration Inc. on March 9, 2010 with aBUYrecommendation, an ABOVE AVERAGE risk ratingand a target price of $7.50. Share price at the time was C$6.35. In our Sector Valuation Update dated July 13, 2010, we decreased our target price toC$6.75. Share price at that time was C$5.57. On August 24, 2010, we increased our target price to C$7.25. Share price at that time was C$6.55. OnOctober 19, 2010, in our Sector Valuation Update, we increased our target price to C$8.00. Share price at that time was C$5.70. On November 302010, we increased our target to C$9.25 and changed our recommendation to aHOLD. Share price at that time was C$8.79. On January 11, 2011, inour Sector Valuation Update, we increased our target price to C$9.50. Share price at that time was C$9.15. On January 31, 2011 we increased outarget price to C$11.00. Share price at that time was C$10.25. On February 1, 2011 we increased our target price to C$11.50. Share price at that timewas C$10.70. On February 16, 2011 we increased our target price to C$12.50. Share price at that time was C$11.09. On March 7, 2011 in our SectoValuation Update, we increased our target price to C$13.00. Share price at that time was C$11.15. On April 15, 2011 we increased our target price toC$14.75. Share price at that time was C$11.31.

Note: We initiated coverage onWinstar Resources Ltd. on July 3, 2008 with a SPECULATIVE BUYrecommendation, a C$7.75 target price and anABOVE AVERAGE risk rating. Share price at that time was C$5.50. On October 21, 2008 we reduced our target price to C$6.50, but maintained ourSPECULATIVE BUYrecommendation. Share price at that time was C$2.01. On December 2, 2008 we reduced our target price to C$4.50. Share priceat that time was C$1.74. On February 17, 2009 we reduced our target price to C$2.50. Share price at that time was C$1.20. On April 22, 2009 weincreased our target price to C$3.00. Share price at that time was C$1.80. On November 23, 2009 we increased our target price to C$4.00. Share priceat that time was C$2.41. In our Sector Valuation Update dated January 15, 2010, we increased our target price to C$4.50. Share price at that time wasC$3.10. On May 26, 2010 we increased our target price to C5.25. Share price at that time was C$3.71. In our Sector Valuation Update dated July 13,2010, we increased our target price to C$5.75. Share price at that time was C$3.68. On September 24, 2010, we decreased our target price to C$5.25Share price at that time was C$3.40. On October 19, 2010, we increased our target price to C$5.50. Share price at that time was C$3.84. On January11, 2011 we increased our target price to C$6.75. Share price at that time was $5.74. On February 22, 2011 we decreased our target price to C$6.25Share price at that time was $4.31.

Note: We initiated coverage onValeura Energy Inc. on June 21, 2011 with a SPECULATIVE BUY recommendation, a C$0.90 target price and anABOVE AVERAGE risk rating.