Several small caps to look at

[dan_s]

This article mentions KOG and FXEN. WRES is on our Watch List and we like it.

http://stocks.investopedia.com/stock-an ... er=YahooSA

[ghrcap]

Petroquest (PQ) drew the curtain back after the close today on their leasing and exploration effort in the Niobrara in Southern Wyoming. They have been completing and evaluating a two well test prior to deciding and announcing their participation in a full blown effort for 2011 and beyond. The belief for the Niobrara is that you need the naturally highly fractured shale to be successful. Not all will have it. I like PQ's efforts to diversify into the resource plays (Arkoma, Fayetteville, Cotton Valley) to complement their shallow GOM assets, but the market has not been awarding them a resource play multiple thus far for their efforts. They may get some mark up tomorrow, but as the comp valuation slide shows at the end of their newly release slide presentation, they have plenty of room to play catch up.
http://finance.yahoo.com/news/PetroQues ... l?x=0&.v=1
and, the slides:
http://www.sec.gov/Archives/edgar/data/ ... -index.htm

[dan_s]

George;

Thanks for bringing this one to our attention. I have added PQ to the official Watch List. It is trading at just just over 4X cash flow per share.