WWCM Commodity Price Forecasts Oil (WTI, US$/barrel) Gas (NYMEX, US$ MMBtu)

2002 $26.16 $3.36

2003 $31.05 $5.49

2004 $41.51 $5.90

2005 $56.59 $8.89

2006 $66.09 $6.73 2007 $100.45 $8.63

2007 $67.20 $6.97 2008 $101.75 $8.45

2008E

2009E

Kim Page, (416) 847-3400; kpage@wwcm.com Dave Hammond, (416) 847-3406; dhammond@wwcm.com
2011 $105.32 $8.54

$122.80 $125.00 $11.22 2009 $11.25 2010

Calendar Futures Oil (NYMEX WTI, US$/barrel) Gas (NYMEX, US$ MMBtu)

$101.75 $104.67 $8.45 $9.21

ENERGY PRODUCERS

1-Oct-08 TARGET/RETURN 12 Month Target EV/ Target EV/ Target DACF DACF 08E 09E Exp'd Return Basic Shares (mm) ENTERPRISE VALUE TSM FD Shares (mm) Mkt Cap (FD) ($mm) VALUATION P/ NAV 2P EV/ BOE/d 08E 09E Proven Reserves (EV/ BOE) 08E Production BOE/d (6:1) 08E 09E FORECASTS % Growth Production Per Share YoY Capex/ CF 08E COMPARATIVE ANALYSIS '08E Cash Costs ($/boe) Proven RLI (yrs) Debt/ CF (yrs) Debt/ Reserves ($/boe)

Company

Symbol

Rating*

Share Price (P)

EV (FD) ($mm)

EV/DACF 08E 09E

P/E 09E

% Gas 08E

FD CFPS 08E 09E

CF/ BOE ($/boe)

OpX ($/boe)

ROE

Action Arcan Berens Breaker Canext Highpine Iteration ProEx Prospex Rock Storm

AEC.V ARN.V BEN.T WAV.T CXZ.V HPX.T ITX.T PXE.T PSX.T RE.T SEO.T

BUY SB BUY SB SB SB SB BUY BUY SB SB

$0.80 $1.90 $0.82 $8.81 $0.83 $8.49 $3.75 $13.31 $2.01 $2.80 $13.89

$1.35 $4.50 $1.75 $18.00 $1.55 $25.00 $9.50 $24.00 $6.50 $8.00 $22.00

4.2x 5.5x 4.5x 5.9x 9.0x 3.7x 6.3x 11.1x 5.3x 4.4x 9.2x

4.7x 4.2x 3.4x 5.0x 4.9x 3.6x 5.8x 6.8x 4.7x 2.8x 6.6x

69% 137% 113% 104% 87% 194% 153% 80% 223% 186% 58%

57.3 37.8 93.5 40.2 88.5 68.2 166.0 57.9 57.2 25.9 44.5

57.3 39.7 93.5 41.8 89.1 69.7 170.8 58.5 57.2 25.9 45.1

$46 $75 $77 $368 $74 $592 $640 $779 $115 $73 $626

$81 $108 $129 $431 $78 $490 $838 $936 $151 $103 $688

3.1x 2.8x 2.7x 3.1x 4.9x 1.1x 3.0x 6.7x 2.0x 1.9x 6.0x

3.4x 2.0x 1.9x 2.4x 2.7x 0.7x 2.5x 4.1x 1.7x 1.0x 4.2x

nm 4.9x nm 6.3x 13.1x 6.3x 9.3x 8.4x 6.0x 3.0x 10.3x

0.3x 0.4x 0.6x 0.6x 0.6x 0.4x 0.7x 1.0x 0.5x 0.4x 1.2x

$40,386 $40,781 $27,763 $50,108 $33,800 $19,987 $34,923 $59,644 $27,511 $21,257 $63,867

$20.42 $24.57 $20.00 $25.15 $26.20 $17.23 $22.89 $22.88 $19.00 $17.53 $38.54

1,500 1,750 4,075 6,378 1,150 21,000 17,600 11,377 4,550 3,500 7,500

2,000 2,650 4,633 8,600 2,315 24,500 24,000 15,695 5,500 4,850 10,775

33% 51% 14% 26% 92% 16% 21% 38% 19% 39% 44%

41% 29% 84% 51% 85% 33% 73% 91% 83% 50% 87%

$0.41 $0.94 $0.50 $3.27 $0.18 $6.30 $1.67 $2.34 $1.19 $2.00 $2.50

$0.38 $1.17 $0.63 $3.64 $0.33 $5.71 $1.72 $3.78 $1.30 $2.73 $3.42

1.1x 1.1x 0.8x 1.4x 1.1x -0.4x 1.0x 1.3x 1.0x 1.0x 0.8x

$44.63 $58.56 $32.01 $55.25 $35.66 $57.60 $39.78 $33.37 $40.27 $41.87 $41.06

$18.59 $10.69 $8.67 $11.25 $11.93 $11.00 $12.14 $10.00 $10.00 $11.70 $9.05

$18.59 $10.69 $12.03 $13.72 $17.88 $13.02 $14.16 $11.56 $12.11 $15.57 $12.93

-3% 15% -6% 28% 3% 17% 9% 11% 13% 17% 24%

7.2 6.9 4.3 7.4 7.1 3.7 5.7 9.9 4.8 4.6 6.5

1.5x 0.9x 1.1x 0.5x 0.3x -0.2x 0.8x 1.1x 0.5x 0.6x 0.6x

$8.84 $7.44 $8.07 $3.68 $1.43 -$3.60 $5.40 $3.85 $4.56 $5.20 $3.49

Average Median SERVICE & ALTERNATIVES TARGET/RETURN

6.3x 5.5x

4.8x 4.7x

128% 113%

3.4x 3.0x

2.4x 2.4x

7.5x 6.3x

0.6x 0.6x

$38,184 $34,923 $64

$23.13 $22.88

36% 33%

64% 73%

0.9 x 1.0 x

$43.64 $41.06

$11.36 $11.00

$13.84 $13.02

12% 13%

6.2 6.5

0.7x 0.6x

$4.40 $4.56

ENTERPRISE VALUE Return Incl. Yield Basic Units/ Shares (mm) TSM FD Units (mm) Mkt Cap (FD) ($mm)

VALUATION Rev. ($mm) 08E 09E

FORECASTS % Growth Revenue Per Share YoY CFPU/ CFPS 08E DPU / DPS 08E Implied Payout Ratio Implied Yield Utilization Rate Day Rate

COMPARATIVE ANALYSIS 2008E Gross Margin Net Margin Debt/ CF (yrs)

Company

Symbol

Rating* Unit Price (P)

12 Month Target EV/ Target EV/ Target EBITDA EBITDA 08E 09E

EV (FD) ($mm)

EV/EBITDA 08E 09E

Current DPU Yield

P/E 09E

P/BV 08E

EPU

ROCE

Alter NRG Cathedral Foremost Phoenix# Trinidad

NRG.V CET.UN.T FMO.UN.T PHX.UN.T TDG.T

SPEC BUY BUY BUY SB

$2.62 $8.80 $8.76 $11.70 $9.85

$5.25 $19.00 $15.00 $21.50 $17.50

nm 10.5x 7.4x 12.0x 7.2x

nm 8.1x 7.1x 7.9x 5.9x

100% 125% 84% 92% 84%

62.6 32.5 21.2 24.3 96.2

62.6 32.8 21.9 24.6 104.8

$164 $288 $192 $288 $948

$133 $291 $128 $271 $1,347

nm 4.9x 3.6x 6.4x 4.7x

nm 3.6x 3.4x 4.0x 3.7x

nm $0.84 $1.00 $1.02 $0.60

nm 9.5% 11.4% 8.7% 6.1%

nm 6.2x 6.0x 6.9x 5.9x

1.7x 2.7x 1.2x 3.3x 1.1x

10 174 230 158 790

25 195 272 201 916

122% 10% 18% 23% 7%

$(0.08) $1.57 $1.58 $1.65 $2.66

nm $0.84 $1.10 $0.92 $0.60

N/A 54% 70% 56% 23%

N/A 9.5% 12.6% 7.9% 6.1%

N/A 50% N/A 47% 69%

N/A $8,496 N/A $9,585 $22,759

51% 49% 27% 37% 43%

nm 19% 14% 17% 14%

7.0x 0.1x -1.9x -0.4x 0.3x

$(0.12) $1.04 $1.48 $1.15 $1.26

-11% 29% 37% 38% 16%

Average Median

9.3x 9.0x

7.2x 7.5x

96% 88%

4.9x 4.8x

3.7x 3.7x

8.9% 9.1%

6.2x 6.1x

2.1x 2.0x

15% 14%

50% 55%

9.0% 8.7%

55% 50%

$13,613 $9,585

39% 40%

16% 16%

1.0x 0.1x

30% 33%

*The rating "MKT PF" indicates a "Market Perform" rating as defined below *The rating "SB" indicates a "Strong Buy" rating as defined below. *The rating "SPEC" indicates a "Speculative Buy" rating as defined below * Estimates assume an exchange rate of USD$1 : CAD$1

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Company Name Ticker Symbol
Disclosure

Company Name

Ticker Symbol

Disclosure

Action Energy Inc Arcan Resources Ltd. Berens Energy Ltd Breaker Energy Ltd Canext Energy Ltd. Highpine Oil & Gas Ltd. Iteration Energy Ltd ProEx Energy Ltd.

AEC.V ARN.V BEN.T WAV.T CXZ.V HPX.T ITX.T PXE.T

2,3 2 2,3 3 2 2,3 -

Alter NRG Corp. Prospex Resources Ltd. Rock Energy Inc. Storm Exploration Inc. Cathedral Energy Services Income Trust Foremost Industries Income Fund Phoenix Technology Income Fund Trinidad Energy Services Income Trust

NRG.V PSX.T RE.T SEO.T CET.UN.T FMO.UN.T PHX.UN.T TDG.UN.T

2,3 3 3 2,3 2,3 2,3

Disclosure Details
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