Changes to the Sweet 16 Growth Portfolio

[dan_s]

Effective after the market closed on April 6, 2011 the following changes were made to the Sweet 16:

Additions:
> Gran Tierra Energy (GTE)
> Rosetta Resources (ROSE)

Drops:
> EOG Resources (EOG)
> Northern Oil & Gas (NOG)

There is nothing wrong with EOG or NOG, both are trading below my estimated Fair Value.

In my opinion, GTE and ROSE will both generate significant production and reserve growth this year. GTE is a pure play on South American oil (selling at close to Brent crude prices BTW). I'm putting the final touches on an updated company profile for ROSE. It has successfully transitioned from a "gasser" to a much more liquids focused company. 90% of their budget will be used for Eagle Ford development drilling this year.

Our recent company profile on GTE can be found under the Watch List tab. Read it carefully before you invest.

[ghrcap]

This new report from BMO Capital on the Alberta Bakken play supports the inclusion of ROSE into the Sweet 16. There is significant potential for light oil here and the price of ROSE gives it little, if any, credit IMO.

THE ALBERTA BAKKEN PETROLEUM SYSTEM (ABPS) IS
"STEADY AS SHE GOES"
An Emerging Unconventional Tight Oil Resource Play
6 April 2011
Significant drilling and landsale activity has been directed toward the Alberta Bakken Petroleum System (ABPS) since BMO Capital Markets initial report on October 2010. This update re-evaluates this recent activity in context of a new hydrodynamic, structural and isopach thickness interpretation. The report provides up-to-date information on recent well production results, drilling and landsale activity along the ABPS Fairway. These results are indicative of an emerging new Light Tight Oil (LTO) resource play in a fairway that is estimated to be 175 miles long (north-south) by 50 miles (east-west)
http://www.primarypetroleum.com/pdf/PIE ... -04-06.pdf

[dan_s]

Notice that current production is now 18,000 boepd (95% light oil). This is above my original forecast. Read our company profile on GTE. We are now updating the website to add GTE and ROSE to our ticker on the Home Page. The GTE and ROSE logos will be added under the Sweet 16 tab. I just sent an updated profile and forecast for GTE to Kim for posting under the logo. I'm now working on the same for ROSE. - Dan

April 6: Gran Tierra Energy Provides South America Operations Update; San Angel Exploration Well Encounters Gas Shows, Testing Initiated (GTE)
Co announces a drilling and operations update in the Putumayo and Lower Magdalena Basins of Colombia, an acreage update in Argentina, and a general Corporate update.
Drilling and logging of the San Angel-1 natural gas exploration well in the Magdalena Block of the Lower Magdalena Basin has been completed. Gas shows were encountered over two intervals totaling 415 feet (gross). Wireline logs and repeat formation testing data was not conclusive in quantifying reservoir quality or gas saturation. Testing operations have been initiated and are expected to be completed in late April, 2011.
Gran Tierra Energy also announced it has successfully farmed out a 50% interest in its Santa Victoria block (2,091.5 km2 or 516, 815.3 acres) in the Noroeste Basin of northwestern Argentina to Apache Corp
Subsequent to closing the acquisition of Petrolifera Petroleum Ltd. ("Petrolifera") on March 18, 2011, company average production has been approximately 18,000 barrels of oil equivalent per day ("BOEPD"), net after royalty ("NAR"), weighted 95% to light oil.
Oil production in Colombia has averaged approximately 15,000 barrels of oil per day ("BOPD") NAR, while oil production in Argentina has averaged approximately 2,300 BOPD NAR and gas production has averaged approximately 4 million standard cubic feet per day, or approximately 700 BOEPD.