TreasurePicks: November 2007

Friday, November 30, 2007

Breakwater Good Value Says Nat Post $$$$

Dundee Is Buying Hand Over Fist Today

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2007/11/30/breakwater-and-hudbay-considered-good-value.aspx

Thursday, November 29, 2007

Abby Badwi - Former Rally CEO Now BNK Director

PDP- Bullish Belt Hold Candle Pattern

PDP Is On The Verge Of A Large Upside Break-out
Pending News: Drilling Results On 4th Q-
Results From 25 Wells
PDP Record 1 Dry Hole In 60 Wells Drilled

Wednesday, November 28, 2007

PDP-Current Power Point Is Online Here!!!

(Shareholders and investors can access the presentation by clicking the play below. Treasure Picks)

PDP is up .36 or 3.52% today

Buy the stock at these lows BEFORE the USA Promotional Tour To Institutional Brokers

http://www.jenningscapital.com/pdfs/PDP11222007NewExportTaxLimitsRevenue.pdf

Todays Buy+ Sells + Zinc Prices + TD View Of BWR+More

Pescod Talks BWR Ready For A Rebound After Tax Loss Selling!

Click Pics Bigger

Tuesday, November 27, 2007

Bwr Technicals - BWR Is Being Shorted Lower Everyday

But BWR + Zinc Fundamentals Will Return And This Stock Will Run Back
Thru 2.80 By Feb 28 2008.

Buy When Everybody Else Is Selling Short.
The Contrarian Strategy

Monday, November 26, 2007

Petrolifera Petroleum posts new corporate presentation

Petrolifera Petroleum posts new corporate presentation

16:01 EST Tuesday, November 27, 2007

CALGARY, Nov. 27 /CNW/ - Petrolifera Petroleum Limited announces that, in conjunction with a series of meetings scheduled by senior management with institutional investors in New York, Connecticut and in Boston, Massachusetts, the company has prepared and will post a new power point presentation on its website. The presentation will be posted on Wednesday, November 28, 2007.

Shareholders and investors can access the presentation by going to www.petrolifera.ca and following the links by clicking on Investor Info at the top of the home page.

For further information: R. A. Gusella, Executive Chairman, Phone (403) 538-6202, Fax (403) 538-6225, inquiries@petrolifera.ca

PDP - Time To Buy - 25 New Wells Drilled Before Jan 1 2008
Jennings Putting Money Where Mouth Is - A Buyer Today

PDP Record is 1 Dry Hole In 60 That Have Been Drilled
I'm Betting On A Gusher To $20.00
51.8 Million OS Shares=Small Float
Small Float Big production= A Fast Riser

"Someone must be trying to undermine our excellent relationship with Río Negro," Gusella said. "We have four rigs working in the province with four service rigs and that sure doesn't look like a midnight escape to me."

Petrolifera invested approximately $47.4-million in Argentina, primarily in Rio Negro province and has budgeted to drill 25 new wells in the fourth quarter of 2007.

http://treasurepicks.blogspot.com/2007/11/news-today-pdp-staying-in-argentina.html

It has four rigs and four service rigs currently working on its Puesto Morales/Rinconada acreage. Total capital investment for the fourth quarter of 2007, including drilling and facilities which are under construction or being completed, has been established at $45.5-million. This would bring the company's total investment for calendar 2007 to approximately $92.9-million, considerably in excess of anticipated cash flow from operations before working capital changes for the period. The company's capital budget for Argentina, in 2008, was recently established at $76-million, with 69 wells and extensive seismic programs scheduled. The decline from anticipated 2007 levels primarily relates to the pending completion of the company's permanent production facilities.

Capital investment in Argentina, since 2005, has thus far totalled $90-million through Sept. 30, 2007, and as indicated, planned fourth quarter 2007 expenditures are $45.5-million with an announced 2008 budget of $76-million. In addition to this capital investment, Petrolifera has paid almost $30-million of royalties to the province of La Pampa and has paid over $40-million of cash income and other taxes to the government of Argentina.

About Peru:

The Vaca Mahuida Block is located along the northeastern shelf area of the Neuquén Basin situated in west central Argentina in the province of Rio Negro. The Block is 1025 km2 (253,000 acres) in size and lies immediately south of the Rinconada Block that is currently being developed by Petrolifera Petroleum Limited (PDP) which company is conducting follow-up drilling to their recent discovery in the Jurassic aged Sierras Blancas Formation (SB).

The Block is currently covered by 540 km2 of 3d seismic shot by Chevron in the late 1990’s and 2d seismic of multiple vintages. To date 12 exploration wells have been drilled on the Block, one of which tested 10MMcf/d gas from a thin interval in the Jurassic Loma Montosa Formation (LM). Additionally there have been multiple shows in the SB as well as in the deeper Triassic section and the shallower Cretaceous Centenario Formation.

The current work program proposed to the Rio Negro Government consists of approximately 1250 km2 of 3D seismic and the drilling of 12 exploratory wells. The estimated actual cost of this program is approximately US$20 million. The state’s value in accordance with the work units bid, is valued at US$36 million. If minimum work is not fulfilled, then cash payments are made at this level.

The primary objective on the Block is a combination stratigraphic/structural play within the SB, a play that has conceptually proven to work in area as attested to by the success of PDP in the Rinconada Block to the north (Figure 1). This play is expected to continue into Vaca Mahuida (Figure 2) along the western flank of a large northwest trending basement high (Figure 3)

Additionally, combination stratigraphic/structural-type plays exist in the LM and Centenario which have been proven to be productive on the PDP Puesto Morales Block to the northwest.

The first well to be drilled on the Block will be the VM 1001 well. This is situated on a four-way dip closure immediately south of the Rinconada Block and southwest of the R x-1029 well (Figure 3) which was recently cased as potential SB/LM oil well. Testing of this well will commence sometime in September 2008.

It Bottomed

I don't know about you but the last time I filled up
I paid $1.059 /L

The world needs oil and PDP has millions of barrels of oil
1.2 million acres in Colombia
and the largest land leases in Argentina and Peru.
They have 7 Million Acres In Peru.
And the have license right to go anywhere in those south American countries and stick a drill rig in the ground
and get the oil.
So far over 7200 barrels a day.

PDP:TSX Petrolifera

But they are finding oil everytime they stick the drill in the ground only 1 dry well.

WOW

And as I recall they were drilling for water

and damn they hit oil again.

Buy PDP

Argentina And Peru have not been explored for 50 years.
Oh sure there are giant oil companies there,

but they' re just pumping oil out no more exploration.

PDP has now arrived

For further information: Richard A Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: (403) 538-6202, Fax: (403) 538-6225, inquiries@petrolifera.ca, www.petrolifera.ca

Pumping light sweet crude from Argentina
and shortly in Peru And Columbia.

The SN2 TEA is 879,100 acres (38 townships) in size

and is located in the Lower Magdalena Basin. It offsets known crude oil and natural gas accumulations. The 14 month work commitment associated with this TEA is the reprocessing of 650 kilometers of seismic and the completion of geological and geophysical studies.

With the signing of this TEA,

http://www.jenningscapital.com/pdfs/PDP11222007NewExportTaxLimitsRevenue.pdf

BWR A SpecBuy To $2.50 + Buy+Sells+ TA + More

This is Today

Below Was Nov 26 2007

Contrarian Strategy Says Buy When All Others Say Sell

Click Pics Bigger

We have a good group that visit the blog-Welcome

Click The Pic

You can post on this blog as well, it is interactive.

Friday, November 23, 2007

BWR Houses Anonymous Accumulation

Follow The Giant Elephants Into The Stock Jungle
Anonymous Is Accumulating

Globe says aggressive players should buy Breakwater

Globe says aggressive players should buy Breakwater

2007-11-23 06:28 ET - In the News

The Globe and Mail reports in its Friday, Nov. 23, edition that Breakwater Resources shed a penny to finish Thursday on the Toronto Stock Exchange at $1.65.

The Globe's Allan Robinson writes in the Eye On Equities column that the stock has a one-year trading range of $1.57 to $3.69. The shares of zinc producer Breakwater Resources have plunged since the mid October, and its third quarter revenue and earnings fell, in part, because of a 25-per-cent drop in output from Myra Falls in British Columbia, and lower production at El Mochito in Honduras. "Breakwater is still a buy for aggressive investors," said The Successful Investor, a monthly newsletter. AIM Canadian Premier Fund portfolio manager Richard Nield said buy Breakwater in The Globe on Oct. 11 when it was trading at $3.33.

It must have hurt to follow that advice. An investment of $1,000 on Oct. 11 is now worth $495.49. Mr. Nield said he expected strong growth in output over the next two years.

Canaccord Capital recommended buying Breakwater in The Globe on July 18 when it was trading at $3.43. CIBC analyst Cliff Hale-Sanders and Terry Tsui recommended buying Breakwater in The Globe on Oct. 27, 2006, when it was trading at $1.49.

Source

NP says Breakwater, Lundin hate that zincing feeling

2007-11-23 09:01 ET - In the News

Also In the News (C-LUN) Lundin Mining Corp

The National Post reports in its Friday, Nov. 23, edition that a crumbling zinc market is bad news for Breakwater Resources.

The Post's Peter Koven writes that Breakwater CEO George Pirie, however, believes the bad time will not last.

Breakwater has been hit hard by the sinking zinc price which has plunged more than 20 per cent in the past 30 days, and 50 per cent this year. Breakwater shares closed at $1.65 Thursday, and are down by more than half since mid-October because of falling prices and operational problems.

"Because zinc is ubiquitous and used everywhere, it's a bit of the 'canary in the gold mine' type of vehicle," says Mr. Pirie. "It'll be the first to suffer the consequences of a nervous market." Zinc prices are falling because the global supply picture is improving. Institutions have forecast surpluses of hundreds of thousands of tons of refined zinc in the next three years.

Lundin Mining vice-chairman Colin Brenner says: "We're going through a bit of a weak period here because there are overlays on oncoming production over the next year or two. But at the end of the day I think zinc prices will strengthen over the next three to four months."

Base metals woes raise questions over world economy

ALLAN ROBINSON

November 23, 2007

Gloom and doom is hitting Canada's base metal mining companies as they react to the recent plunge in commodity prices, but is it a signal that the global growth story is over or just part of a general stock market correction?

Although Michael Smedley, chief portfolio officer for Canadian General Investments Ltd., is contemplating lightening up on the metal sector, he says when it comes to raising cash it will most likely come from selling financials.

He describes the recent malaise as

"a pause that relates to the entire market working its way through the various financial crises."

As for the metals sector, investors are preoccupied with takeover jousting between BHP Billiton Ltd. and Rio Tinto PLC, the world's two natural resource titans, he said.

"I'm not rebalancing," Mr. Smedley said. "I'm not giving up on Canada as being one of the best resource rich countries in the world."

And exploration is the key.

"My core holdings are producers, but also producers-slash-exploration plays," Mr. Smedley said. He cites FNX Mining Co. Ltd., which has gone from non-producer to a company that is expected to provide almost 20 per cent of Companhia Vale do Rio Doce (CVRD) tonnage for processing in the Sudbury basin, he said.

But the shares of some of Canada's largest publicly traded companies such as Teck Cominco Ltd., Sherritt International Corp., Fording Canadian Coal Trust, Lundin Mining Corp. and Breakwater Resources Ltd. have been in a freefall during the past few weeks.

Base metals prices have slumped as worries grow that the credit crisis will slow global growth. Yesterday, copper prices rose to $2.96 (U.S.) a pound, up 2 cents, after hitting an eight-month low and dropping 20 per cent since the beginning of the month. Likewise, zinc prices have plunged 26 per cent this month and lead is down 15 per cent. Aluminum and nickel were little changed.

"I wouldn't be quick to say to dump these commodities," Frank Holmes, chief investment officer at U.S. Global Investors Inc., told Bloomberg News. "We are dealing with a global economic boom."

PDP Jennings Revised Target $17.40

Buy PDP At These Prices
10.50
The Longer The Base The Better The Case

http://www.jenningscapital.com/pdfs/PDP11222007NewExportTaxLimitsRevenue.pdf

Zinc + China = A Glut Of Zinc In 2008+2009 + Low Prices

China May Cancel VAT Export Rebate and Levy Export Tax on 0# Zinc

By Ida Chen
12 Nov 2007 at 10:21 AM GMT-05:00

SHANGHAI (Interfax-China) -- The Chinese government is considering cancelling the current 5% value-added tax (VAT) export rebate and imposing a minimum 5% export tax on 0# refined zinc (>=99.995%) in January next year, in order to slow investment growth in zinc smelting projects and curb the country's huge trade surplus, industry insiders told Interfax today.

"The policy is still being discussed by relevant government departments and major smelters. However, as smelters, we hope the existing policy can be retained," a senior official, surnamed Wang, from the trading department of Hunan Zhuzhou Smelter Group, China's leading zinc smelter, said.

Wang expressed concern that the policy may burden domestic zinc smelters with unprecedented difficulties. "The domestic zinc smelting sector will face the same problems as the lead smelting sector is currently facing," he added.

The policy will result in a significant drop in China's zinc exports and tight global supply, which will in turn dramatically increase both global zinc prices and zinc concentrate prices. Domestic zinc smelters will have no choice but to accept soaring imported concentrate prices, and will probably be forced to reduce production, Wang explained.

Zhu Yiman, an analyst from Commodity Business Intelligence China, a Shanghai-based commodity market service provider told Interfax that "it is only a matter of time before the government cancels the VAT export rebate on 0# zinc, as other types of refined zinc, namely 1# zinc (>=99.99% but <99.995%)>

Zhu further commented that major smelters met with government departments last Friday to discuss policy feasibility, but no details have been released to date.

0# zinc is the standard form of zinc on both the London Metal Exchange and the Shanghai Futures Exchange, and accounts for the majority of China's zinc exports.

China imported 104,729 tonnes of zinc in the first nine months of this year, slumping 56.1% from the same period last year, while exports climbed 43.7% to 248,233 tonnes. As a result, net exports reached 143,504 tonnes. Exports in September tumbled by 44.03% from August to 12,325 tonnes, down 18.5% from the same period last year.

The country produced 2.696 million tonnes of refined zinc in the first nine months, up 19% year-on-year, creating ample supply that has dragged zinc futures to record lows since their debut on the Shanghai Futures Exchange in March this year.

Zinc for immediate delivery at the benchmark Shanghai Yangtze River Market traded at an average of RMB 22,500 ($3,036.44) per tonne today, down RMB 200 ($26.99) from last Friday.

"Zinc futures in both China and the West have to face the problem of a zinc production surplus as well as rising stockpiles in recent weeks. The domestic zinc spot price is also down," Deng Hong, with China Brilliant Futures, said.

© Interfax-China 2007.

It looks like the potential for another large run-up in Zinc prices in the new year...then get out before it crashes back to .50 cents per lb.says: Melion1

Reasons for Zinc's Weakness

There are a number of reasons why the price of zinc has been weak the last year. Here are some of them:

1) Too far, too fast -- From late 2005 to late 2006, the price of zinc tripled. It moved up too far too fast, so it was bound to correct from that parabolic rally. It went from the best performing metal in 2006 to the worst performing one in 2007.

2) A surge in new supply from mine restarts and San Cristobal -- As a result of the huge rally in 2005-2006, a number of old mines that were shut down when zinc prices were much lower because they were uneconomic then have been reopening, as much higher zinc prices made them economically viable again. Another significant new source of zinc is the San Cristobal mine in Bolivia, which just recently started production after many years of development. The market is forward looking, so this surge in new supply has been factored into the price of zinc, even though it hasn't yet resulted in an oversupply situation, at least as measured by LME inventories.

The surge in new supply is only temporary, and doesn't provide the consistent growth in supply needed to meet the growing world zinc demand and offset depleting reserves at existing mines. There are only so many old mines that were uneconomic at lower metal prices and had enough reserves left to be mined economically today. After San Cristobal, the pipeline of sizable zinc projects for the next few years is pretty empty -- Metalline Mining's Sierra Mojada project is probably the only world-class sized zinc project that will be proven feasible in the next year or so. Despite the recent additions to supply, LME inventories indicate that the zinc market is still tighter than other metals, as it had a huge supply deficit to overcome from the last few years -- LME inventories have dropped nearly 90% over the last 3 1/2 years.

We'll soon see if the oversupply situation everybody and their brother have been saying is coming in the zinc market actually materializes, and how long it lasts. Per Scotia Capital's China Commodities Weekly, "China has been sucking up the world’s growing supply of zinc mine output, turning it to refined metals, and then using it for domestic consumption."

3) The perception that China produces more zinc than they can consume -- With the weakness in the zinc price, there has been a plethora of bearish articles on zinc focusing on China increasing their supply of refined zinc without mentioning that they've had to import far more zinc concentrate in order to increase their refined zinc output. China has significantly ramped up their smelting capacity, but their mine supply hasn't been able to keep up -- it's much easier to build a smelter than it is to find and develop a sizable zinc deposit. As a result of the ramped up smelting capacity, China has significantly increased their refined zinc output, but they've had to import a lot more zinc concentrate from foreign mines in order to do so.

The headlines discuss China's increased refined zinc output as if they had a glut of zinc when in actuality their imports of zinc concentrate have increased 178% YOY in the first 9 months this year -- that's an enormous increase in imports, dwarfing any refined zinc exports (China actually became a net refined zinc importer in September despite all these concentrate imports). Once the growth in global zinc mine output slows after the recent supply surge, China may not be able to continue to increase their concentrate imports, and we may have a zinc crisis on our hands rather than the expected zinc glut.

4) Fear of global recession -- With the subprime crisis and weakness in the U.S. housing sector, many fear that the world is headed for recession. Many argue that a U.S. recession means we'll get a global recession, which would mean less demand for base metals. However, even if the U.S. goes into a housing-led recession, that doesn't mean the world will go into a recession, though global growth may slow. Even if China's growth slows dramatically from 10%+ to even 5%, that would still likely mean increased demand for base metals, as the growth in base metals demand has been coming from developing countries, not the U.S. The U.S. doesn't drive the global resource markets any more -- with their huge savings rate and increasing consumption, China is becoming less and less reliant on the U.S. for their own growth. China and other developing countries have a heck of a long way to go to come anywhere near the standard of living of the U.S.

5) Technical shorting of zinc futures -- For most of this year, technical hedge funds have been shorting zinc futures based on a head and shoulders top pattern with a target in the $.90-1.00 area. In the fairly small futures market, these funds dominate, and yesterday's Metals Insider says, "The CTA systematic fund community is running short of this market to over 90% of historic capacity and they are not alone, we suspect." With everybody short zinc, it has been pressured down, but should rebound strongly when the shorts cover. Since zinc hit as low as $1.0185 overnight, it looks like the technical bottom is close.

6) A short-term surge in Chinese zinc exports ahead of an expected tax law change -- The recent uptick in LME zinc inventories may not be an indication of increased supply, but may instead be a reflection of a scramble to beat the impending tax law change in China where refined zinc will no longer receive a 5% export rebate but will instead be assessed a 5% export tax. As Metals Insider explained yesterday, "In China particularly, traders were looking for production and exports to rise ahead of a probable removal of export tax rebates and the possible introduction of new export levies."

Once this short-term surge is over and the tax law change is implemented, look for zinc to rebound, especially with the world's largest producer of zinc likely to export much less refined zinc, if any. Despite the short-term selling it's causing, this tax law change will be bullish for the price of zinc longer term: "The policy will result in a significant drop in China's zinc exports and tight global supply, which will in turn dramatically increase both global zinc prices and zinc concentrate prices. Domestic zinc smelters will have no choice but to accept soaring imported concentrate prices, and will probably be forced to reduce production, Wang explained." (http://www.resourceinvestor.com/pebble.asp?relid=37724)

And then we have this report:

China's strong demand to support future zinc prices - industry insiders
By Ida Chen

Shanghai. September 10. INTERFAX-CHINA - Zinc prices will remain stable in the remaining months of this year on the back of strong demand from China, industry insiders told Interfax at the 2007 Lead & Zinc Summit - Prices, Futures, Market & Development, held in Shanghai over the weekend.

"China will remain the largest zinc consumer in the world, and the country's strong demand for zinc will continue to support zinc prices for the remaining months of this year," Wu Xijun, a senior official with Shenzhen-listed Zhongjin Lingnan Co. Ltd., a leading zinc smelter located in Guangdong Province's city of Shaoguan, said.

"Although there is currently a slight oversupply of zinc [in global and Chinese markets], China's steel industry has recently entered the September peak consumption season, and we therefore expect zinc prices to remain stable in the coming months, with the current price of RMB 25,000 ($3,324.47) per ton acting as a support point. However, we expect to see substantial global oversupply in 2009," Wu said.

Zhao Cuiqing, deputy director of the China Nonferrous Metals Industry Association's (CNMIA) zinc and lead department commented that the global zinc market is currently driven by increased demand, rather than a raw material shortage, and China's rapid industrialization is will firmly support the demand for zinc in the future.

"In addition to consumption from the downstream steel industry, zinc is also widely used in China's hardware manufacturing sector, which consumes between 1 million and 1.2 million tons of zinc per year. For example, China's water tap manufacturing sector consumed 240,000 tons of zinc last year alone," Zhao explained.

Moreover, Zhao predicts that China's zinc production capacity will increase by as much as 500,000 tons this year and by 680,000 tons next year. There is currently 1.25 million tons of zinc smelting capacity under construction in China, with 620,000 tons in the Inner Mongolia Autonomous Region, where various projects are under construction near mines, according to her.

However, Heng Kun, an analyst from Beijing-based Anxin Securities, held a more bullish view of China's zinc consumption for this year and the next due to China's fast growing economy and low stockpile levels, and commented that China's increased investment in the transportation industry is a major factor contributing to the growth in zinc consumption this year.

Heng further commented that there was no significant zinc oversupply in the Chinese domestic market this year, and predicted that zinc prices on both the Shanghai Futures Exchange (SHFE) and the London Metal Exchange (LME) would reach highs of RMB 30,000 ($3,989.36) per ton and $3,500 per ton respectively in the remaining months of this year.

Recently, capacity growth from global zinc mines has outpaced the growth in zinc smelting capacity. This has led to imported zinc concentrate treatment charges (TCs) reaching record highs of between $370 and $380 per ton.

Since then, zinc concentrate TCs in the domestic market have increased to current levels of between RMB 8,000 ($1,063.83) per ton and RMB 9,000 ($1,196.81) per ton, due to increased domestic concentrate production. According to the CNMIA, China's fixed assets investment in the lead and zinc mining sector amounted to RMB 26.72 billion ($3.55 billion) in the first six months, up 75.6 percent from the same period last year, significantly above 57.8 percent growth in the smelting sector.

However, despite high-level TCs encouraging domestic zinc smelters to expand capacity and increase earnings, stricter government policies on pollution control and facility upgrades have limited capacity expansion plans, Zhongjin Lingnan's Wu commented.

The Chinese government policy to control growth in the zinc and lead industry, released in March this year, has so far led to the elimination of between 300,000 and 400,000 tons of zinc capacity, according to an estimate by Xu Jiancheng, president of Guizhou Xianjin Zinc Co. Ltd., a private zinc smelter located in Guizhou Province's city of Liupanshui, a major zinc producing region in China.

"More than 20 small-scale zinc plants have been shut down in my city alone this year. Moreover, the reduction in zinc capacity, caused by the shutdown of so many small smelters, has tightened supply in the domestic spot market in a way that was not previously anticipated by market players," Xu said.

The spot price of 0# zinc ingot lay between RMB 27,800 ($3,696.81) per ton and RMB 27,900 ($3,710.11) per ton in the Yangtze River Nonferrous Metals Market last Friday, noticeably higher than futures market prices.

The most active November contract closed at RMB 26,405 ($3,511.3) per ton last Friday on the SHFE, while the three-month zinc price on the LME fell to a new low for this year to $2,775 per ton last Friday, down 32.81 percent from the beginning of the year.

According to various traders at the 2007 Zinc & Lead Summit, both domestic smelters and traders have amassed substantial zinc stockpiles, which they are reluctant to sell in the market.

"At present, we're looking at tight supply in the domestic Chinese spot market. We are therefore confident of downstream consumption in the future, and contracts offered by our clients have increased recently," a Tianjin-based trader, who asked to remain anonymous, told Interfax at the summit.

Li Junchao, an analyst from Shanghai-based Xinguolian Futures Brokerage commented that domestic smelters and traders could face losses if they sell refined zinc at current market prices, as the market prices has dropped from when many of them imported zinc concentrate or purchased refined zinc from the market.

"Many smelters and traders are stockpiling zinc and hedging their bets against a fall in prices in the futures market, rather than selling refined zinc in the spot market," he added.

Li predicted that despite the downturn in LME prices exerting pressure on strong domestic zinc spot prices, zinc prices will remain at current levels until the first quarter of next year, as the lion's share of new zinc smelting capacity is not due to start full-scale production until the first quarter. However, when full-scale production does commence, domestic prices will fall dramatically.

According to the China Commodities Weekly published by Macquarie Research last week, an estimated 70,000 tons of zinc has been stockpiled in the domestic market over the past few months, including approximately 40,000 tons in bonded warehouses.

China produced 276,300 tons of refined zinc in July, and a total of 2,082,800 tons in the first seven months of this year, up 20.9 percent from the same period last year.

The nation exported 24,198 tons of refined zinc in July, up 83.69 percent from June, and 213,889 tons in the first seven months, lifting 76.4 percent year-on-year. Imports of refined zinc amounted to 16,493 in July, and 85,802 tons in the first seven months, down 55.7 percent from the same period last year.

China expected to continue to drive up commodity prices: Bank of Canada

CANADIAN PRESS

Published Thursday November 22nd, 2007
OTTAWA - A Bank of Canada report suggests Canada owes much of its hot commodities-driven economy and the surging dollar to China's insatiable demand.

And the report says China will continue to drive up commodity prices such as oil and minerals for years to come. The paper in the bank's fall review says China's economy has been expanding by an annual average of 9.7 per cent for the past quarter-century and there appears to be no end in sight.

Even so, China's impact on trade patterns since joining the World Trade Organization in 2001 and subsequent runaway demand for oil and metals has caught the world by surprise, says the paper.

"Together, these two effects help explain the recent change in the relative prices of these goods," says the paper titled "The Effect of China on Global Prices."

"For oil and metals, China's size and growth are likely to remain among the key factors driving the growth of global demand for some time."

For instance, the paper notes that international bodies consistently underestimated China's demand for oil, which increased by 28 per cent from 2002 to 2004, and have contributed to the steep rise in crude oil prices to near US$100 a barrel level today.

As well, in 2002 China accounted for about 13 per cent of world trade in metal ores. Three years later, that slice of the pie had grown to 25 per cent, with estimates it may have exceeded 30 per cent in 2006.

As a result, between 2001 and 2006, prices for metals such as aluminum, copper, nickel and steel have almost tripled.

The paper equates China's emergence and impact on the world economy to that of Japan in the 1960s, saying that exporting countries will likely react by increasing supplies of these commodities, but the adjustment will take some time.

"Hence, the relative prices of commodities can also be expected to remain somewhat elevated."
.....

"At this point...definitive empirical evidence that China is a net source of disinflation, or inflation, remains elusive," the paper concludes.

And For Those Looking To Read A PermaBull In Zinc check out Great Trades

Thursday, November 22, 2007

PDP+BWR Insiders+Short Update

BWR Has Corrected Back To Jan 2007 levels

Houses Today On Thin Trading

Now the question is can BWR come back to the gap level found at 2.70-2.80

Unless BWR shuts down another mine, or ZINC crashes to .50 cents per lb,
I forecast that BWR will achieve 2.40-2.80 before January 31,2008.
Be sure to watch

George Pirie, CEO, Breakwater Resources
BNN Friday, November 23
11:30AM ET/8:30AM PT

What's hot (and what's not) in metals, minerals, and other commodities: that's the focus of The Commodities Report. Each week, Linda Sims explores interesting trends and developments in the sector.

Contact The Commodities Report with your questions:
| Toll free across Canada: 1-877-667-6288 | Toronto:: 416-957-8199

PDP Says Hell No We Won't Go!

(BN Americas)

Petrolifera denies reports, to stay in Río Negro - Argentina

Published: Thursday, November 22, 2007 12:20 (GMT -0400)

Calgary-based Petrolifera Petroleum (TSX: PDP) has a positive relationship with Argentina's Río Negro province and is not leaving any of its operations there, company CEO Richard Gusella told BNamericas.

Local press in Argentina speculated Petrolifera could pull out of Río Negro and Argentina in general two days after the company issued a statement affirming its commitment to the region.

Press speculation on a possible pullout began after Petrolifera said it would re-examine its previously announced capex budget for 2008 in the wake of planning minister Julio de Vido's November 15 announcement that exported oil would be capped at US$42/b.

Petrolifera stock fell 18% on Monday and was trading further down at Cdn$10.38 on Thursday.

Petrolifera produces at its 100%-owned Puesto Morales/Rinconada concession in Argentina's Neuquén basin.

Wednesday, November 21, 2007

Pescod+CEO Of PDP Discuss PDP Tonight

Click To Make Larger

Zinc Is Falling Hard-BWR 4th Q In Question

Houses Today

Post says Breakwater takes zinc's plunge on the chin

2007-11-21 09:07 ET - In the News

The Financial Post reports in its Wednesday edition that investors have been frantically selling shares of Breakwater Resources in the last five weeks, slicing the share price by nearly half.

The Post's Peter Koven, writing in Trading Desk, says Canaccord Adams analyst Orest Wowkodaw said that part of the reason for the sell-off is the company's operational difficulties, including a water discharge problem at its Mochito mine and a road closure at its Myra Falls mine.

The bigger issue, says Mr. Wowkadaw, is the zinc market, which is looking like it could be very oversupplied "and Breakwater is just feeling the brunt of that." Spot zinc prices are down about 20 per cent in the last 30 days. Others have speculated that Breakwater could also be feeling the affects of the potential sale of DundeeWealth. Dundee Corp., the parent, holds a 24-per-cent share of Breakwater, and there is some talk the controlling Goodman family could sell that interest. Mr. Wowkodaw does not believe that is an issue. "Now that Scotiabank has come in (buying a minority share of Dundee), I see the risk of a distressed sale as relatively low. So I don't think the Goodmans are sellers at anything close to this current price."

Insiders Activity

Playing Markets Lately Is Like Dodging Bullets
Click Pics Bigger

Copper, zinc futures plummet in Shanghai

By Wang Lan (China Daily)
Updated: 2007-11-21 10:41

On the heels of the crash in international markets, Shanghai copper and zinc futures yesterday dropped to the daily allowable limits, reaching the lowest levels since early this year.

The most actively traded copper futures contracts for January delivery on Shanghai Futures Exchange (SHFE) slumped 4.01 percent to 55,780 yuan per ton, the lowest price level since February. The most actively traded zinc futures contracts for delivery in January on SHFE plummeted 6.01 percent to close at 18,205 yuan per ton, the lowest since zinc futures started trading in SHFE this April.

Last Friday, copper and zinc futures on the London Metals Exchange (LME) saw the biggest single-day drop yet. Copper futures contracts tumbled 5.11 percent to close at $6,690 per ton, while zinc futures contracts plunged 8.79 percent to close at $2,310 per ton.

Analysts said a combination of factors, including rising crude oil prices worldwide, shrinking US property sales figures and rocketing farm product prices, could signal the beginning of a US-led global economic down-cycle.

"Investors are beginning to take a more cautious attitude toward the market trend, as the US property market is showing no sign of recovery after being hit by the subprime mortgage crisis," said Zhou Jie, a non-ferrous metals analyst at China International (Shanghai) Futures Co. "The latest figures show that the even lower confidence in US home builders intensifies investors' concerns about the US property market," Zhou added.

According to the US National Association of Home Builders (NAHB), the November housing market index held even with October's 19 reading, its lowest point since the series began in January of 1985.

"Builder confidence in the market for new, single-family homes remained unchanged in November due to continuing mortgage market problems," said the NAHB report released on Monday.

Industrial experts and analysts said the continuous inventory rises of non-ferrous metals has also contributed to the price slump over the past several weeks.

The latest figures show that the LME copper inventory last week reached 180,000 tons, up 50 percent form the previous month, close to the record high of 200,000 tons recorded early this year.

The copper inventory in SHFE also rose 18 percent from September to 57,000 tons last Friday.

Copper, Zinc Fall Limit on Stockpile Gains, U.S. Demand Concern

By Li Xiaowei

Nov. 20 (Bloomberg) -- Copper futures in Shanghai fell the maximum daily limit to the lowest in more than eight months as an increase in global inventories of the metal signaled weaker demand. Zinc also dropped the exchange-imposed limit.

Copper stockpiles monitored by the London Metal Exchange rose yesterday to the highest since April 2, with most increases in warehouses located in the U.S., the world's second-biggest user of the metal after China. U.S. demand has been reduced by a housing slump and speculation economic growth will slow.

``If the Fed makes no further rate cuts, the U.S. economy is bound to be hurt, reducing demand for metals,'' Cai Jinrong, an analyst at metals trader Wanxiang Resources Co., said by phone from Shanghai today.

Copper for January delivery fell 4 percent from the previous settlement price to close at 55,780 yuan ($7,513) a metric ton, the lowest close since March 5. Shanghai zinc for January delivery fell 6 percent from the previous settlement to 18,205 yuan a ton, the lowest since the contract was introduced in March.

The metal for immediate delivery in Changjiang, Shanghai's biggest cash market, lost as much as 4.3 percent to 56,450 yuan a ton today.

London Metal Exchange copper for delivery in three months fell 1.7 percent $6,680 a ton at 3:36 p.m. in Shanghai, after falling as much as 5.3 percent yesterday. LME zinc for delivery in three months lost 2 percent to $2,307 a ton.

Stockpiles of copper gained 1,275 tons, or 0.7 percent, to 180,925 tons yesterday, the 10th straight daily gain, according to exchange data. Supplies have increased 8.4 percent this month.

Recession Forecasts

The number of economists forecasting the U.S. will slip into recession almost doubled over the last two months, a survey by the National Association for Business Economics showed. Housing starts in the U.S. probably fell to a 14-year low in October, signaling a real-estate slump will continue to weigh on growth, economists said before a report today.

Zinc fell to a 20-month low in London yesterday as shipments from China, the world's largest producer of the metal, may have accelerated on speculation the government will end a 5 percent tax rebate on exports next year.

Holders of stockpiled zinc may have sought ``to liquidate'' before the change, Michael Jansen, an analyst at JPMorgan Securities Ltd., said in a report yesterday. Exports from China jumped 21 percent in the first 10 months of this year, helping send zinc prices down 45 percent.

Exports were 8,964 tons in October compared with 12,325 tons in the previous month and the record high of 81,905 tons in December 2006, according to customs data.

Zinc Exports

``We expect zinc exports to rebound in the remainder of this year from the October low as an oversupply in the domestic market pushes down local prices,'' Xuan Long, an analyst at Huawen Futures Brokerage Co., said by phone from Shanghai today,

``Speculation about the cancellation of tax benefits may be another incentive to export more,'' Xuan said.

Shanghai aluminum for January delivery lost 0.9 percent to 17,860 yuan a ton, and LME aluminum was 0.4 percent higher at $2,520 a ton at 3:45 p.m.

Among other LME-traded metals, lead was 0.5 percent down at $3,035 a ton, nickel added 0.2 percent to $30,250 a ton, and tin was 0.2 percent higher at $16,800 a ton.

Tuesday, November 20, 2007

PDP Staying In Argentina+Insiders+Analyst Targets

Globe says Petrolifera, Petro Andina douse exit rumours

2007-11-21 07:14 ET - In the News

Also In the News (C-PAR) Petro Andina Resources Inc

The Globe and Mail reports in its Wednesday edition that Canadian oil companies operating in Argentina have no plans to pull out of the country, despite an export tax regime that will cut into what they receive for crude production there. The Globe's Norval Scott writes that Calgary's Petrolifera Petroleum said Monday the decision effectively sets a ceiling of $42 (U.S.) on the price of a barrel of light crude oil produced in the country.

This, it said, would likely result in an 8-per-cent reduction in the company's cash flow from operations, and cause it to re-examine its capital budget in Argentina. After the release, Petrolifera's stock fell more than 18 per cent. Petrolifera issued another statement Tuesday saying it is not withdrawing from Argentina, contrary to some news reports.

Petro Andina Resources produces around 7,400 barrels a day of oil in Argentina, said that the changes would likely set a ceiling for the amount it realizes from production of around $38 (U.S.) a barrel when the index price exceeds $60.90 (U.S.). That's a small drop from the $38.32 (U.S.) it realized for the first nine months of 2007. Petrolifera rose 15 cents to $10.75 in Toronto, while Petro Andina rose 66 cents to $14.20.

David Pescod Reports On PDP This Evening
Revised Analyst Reports Today
Scotia Target To $16.50
GMP To $15.00

Click Pic

Petrolifera says re-examining not leaving Argentina

2007-11-20 10:34 ET - News Release

Mr. R.A. Gusella reports

PETROLIFERA PETROLEUM SEEKS TO CLARIFY PRESS REPORTS ABOUT PLANNED ACTIVITY IN ARGENTINA

Petrolifera Petroleum Ltd. wishes to clarify its position with respect to its continuing activity in the provinces of Rio Negro and La Pampa, in Argentina. There have been erroneous reports in the media that the company is withdrawing from Argentina. These reports are not correct.

Petrolifera has a significant asset base in Argentina, primarily associated with its Puesto Morales/Rinconada concession in Rio Negro province, Argentina. The company also owns extensive acreage under its Vaca Mahuida concession and is scheduled to be awarded the Puesto Guevara concession in Rio Negro province. In La Pampa, Petrolifera holds the Governador Ayala II concession.

During the first nine months of 2007, Petrolifera produced an average of approximately 8,400 barrels per day of crude oil and over two million cubic feet per day of natural gas. This was in increase of 90 per cent over 2006 levels. During this period, Petrolifera invested approximately $47.4-million in Argentina, primarily in Rio Negro province and has budgeted to drill 25 new wells in the fourth quarter of 2007. It has four rigs and four service rigs currently working on its Puesto Morales/Rinconada acreage. Total capital investment for the fourth quarter of 2007, including drilling and facilities which are under construction or being completed, has been established at $45.5-million. This would bring the company's total investment for calendar 2007 to approximately $92.9-million, considerably in excess of anticipated cash flow from operations before working capital changes for the period. The company's capital budget for Argentina, in 2008, was recently established at $76-million, with 69 wells and extensive seismic programs scheduled. The decline from anticipated 2007 levels primarily relates to the pending completion of the company's permanent production facilities.

Since it embarked on its original drilling program at Puesto Morales in late 2005, Petrolifera has made a number of significant new discoveries. The company has, since its formation, drilled approximately 60 wells in Argentina, with only one dry hole and one suspended well. Several new pool discoveries have been made and the company has produced over four million barrels of crude oil, all found through the drill bit. Capital investment in Argentina, since 2005, has thus far totalled $90-million through Sept. 30, 2007, and as indicated, planned fourth quarter 2007 expenditures are $45.5-million with an announced 2008 budget of $76-million. In addition to this capital investment, Petrolifera has paid almost $30-million of royalties to the province of La Pampa and has paid over $40-million of cash income and other taxes to the government of Argentina.

As reported in Stockwatch on Nov. 19, 2007, in announcing two new discoveries and a new zone completion on its Puesto Morales concession, Petrolifera commented that in light of the recent proposed increase in Argentina's export tax on crude oil, which could adversely but minimally impact the company's anticipated 2008 cash flow, it would be re-examining its previously announced capital budget to determine which, if any, of its anticipated 2008 Argentinean projects will have to be deferred or eliminated, due to the lower level of anticipated cash flow relative to its actual and forecast sales levels anticipated to be achievable during the year.

It should be noted that in 2007 year to date, the average price received by Petrolifera for its oil production was under $46.00 per barrel, already constrained by the impact of the prevailing export tax. The new indicated ceiling of $42.00 (U.S.), when adjusted for tax and royalty effects, gives rise to the previously forecast reduction in cash flow, for an assumed 10,000-barrel-per-day sales level, and the investment community seems concerned that the new level of export tax does appear to limit the potential for realizing a portion of increases to the world price for crude oil sales, during a time when cost pressures could emerge in conducting field and other business activities.

Petrolifera wishes to clarify that a re-examination of spending plans should be considered to be in the ordinary course of business, as policy changes, such as the proposed increase in the export tax in Argentina's impact on available cash flow and also on prospective returns from reinvestment activity; however, such a re-examination does not infer withdrawal or in fact a cancellation or reduction in planned activity.

While the company does also have cash balances and an essentially unused $60-million (U.S.) available credit facility, to supplement cash flow in its operations in financing its capital programs, cash flow from operations remains the principal source of financing for new investment activity for most oil companies.

To reiterate, Petrolifera in no way stated that it was withdrawing from Argentina or was otherwise curtailing its planned activity, but merely stated that it would be re-examining its budgeted activity in light of the announced policy changes. With four rigs and four service rigs currently active in Rio Negro province and a 3-D seismic program under way in La Pampa province, Petrolifera is among the most active operators in Argentina, has become one of the largest landholders, and is among the 10 largest producers and operators in Argentina, all achieved during the past two years. Such a level of commitment and achievement is hardly reflective of an intention to withdraw from the country and Petrolifera's position has been miscast in the media and popular press.

We seek Safe Harbor.

BWR House Buy+ Sells Anon is accumulating

Stock prices rebound at opening

Tuesday, November 20, 2007

Canadian stock prices jumped at the opening Tuesday after a tamer-than-expected inflation reading fuelled speculation that the Bank of Canada would cut interest rates next month.

The TSX composite index was 97 points in the first few minutes of trading, outpacing gains on Wall Street, where pressure came from renewed worries about the mortgage and housing sectors, and retailer Target’s quarterly profit drop.

Firming commodity prices also buoyed the TSX.

On Wall Street, the Dow industrials rose 86 points, with the Nasdaq ahead 0.6 per cent on Hewlett-Packard’s quarterly results, outlook and stock buyback.

BWR Crash=Oversold

PDP Freefall = Oversold

Post says Petrolifera caught in "Argentina sell-off"

Petrolifera Petroleum Ltd (C:PDP)

Shares Issued 50,119,010

Last Close 11/19/2007 $10.60

Tuesday November 20 2007 - In the News

The Financial Post reports in its Tuesday edition that a handful of Canadian oil and gas explorers were caught in an "Argentina sell-off" Monday and Petrolifera Petroleum threatened to pull investment from the country due to a new crude oil export tax.

The Post's Jon Harding says the Calgary firm said the tax, which took effect in January as a temporary emergency measure to encourage greater domestic supplies of oil and refined products, essentially caps the sale price of Petrolifera's crude oil production in Argentina at $42 (U.S.) a barrel. The government signalled on Friday the higher tax will stay in place. Petrolifera said the tax will reduce net earnings from operations by 8 per cent, on assumed production of 10,000 barrels of oil a day.

As a result, it said it will re-examine a 2008 capital spending program set only a week ago at $140-million. "The tax is a means of effectively having the oil company subsidize the consumption price in Argentina," said Richard Gusella, Petrolifera's executive chairman.

Petrolifera sold its Argentine oil production through the first nine months of the year at around $46 (U.S.) a barrel. Petrofilia's shares dropped $2.36 to a 12-month low of $10.60.

Monday, November 19, 2007

BWR Gets Hammered With ALL Zinc Companies

PDP Gets Hammered- But Drilling Continues

Click PIC To Enlarge

This is shocking considering that these 4 analysts see the stock from $19-$30.00 in next 12 mths.

Jennings has a "Buy" not "Strong Buy" and a $22 target.
(As of Aug 10) This was a downgrade from their previous "Strong Buy" and $26.75 target.

Octagon has a "Buy" recommendation with a $25 target.
(As of Nov 8 2007). This was down from their previous $30 target.
According to Octagon commencement of the high impact drilling is almost a year away and with no guidance from the company they are conservatively assuming no production growth for next year.

Scotial has a "2-Sector Perform" and a target of $19.50. They also have an above average risk rating for the stock. They see the main catalysts in 2008 in Columbia and Peru.

Orion has an "Equal Weight" rating and a $21 target(As of Aug 9 2007)

Warren Verbonac
(403) 750-0497· wverbonac@octagoncap.com

Activity Update
• Petrolifera’s production in the current quarter
(Q3/07) of 7,563 boed is down from that of the Company’s last
release, of 8,890 boed (with productive capability at that time of over 9,600
boed).

the Company’s net acreage in Argentina’s Neuquen Basin, which still
provides substantial ongoing drilling opportunities.
• Due to rig availability issues, 11 more locations are expected to be drilled by
year‐end, 10 locations short of the original target.
• Q3 results are expected November 6, including an update on the status of
the $37.7 million in asset backed commercial paper held by the Company.
• We continue to regard Petrolifera’s exploration inventory as one of the most
prospective of any junior. With the first drilling in Peru expected soon, there
is tremendous potential.
We are thus maintaining our BUY recommendation and $30.00 target price.

Petrolifera tests 1050 well at 2.4 mmcf per day

2007-11-19 09:47 ET - News Release

Mr. R.A. Gusella reports

PETROLIFERA PROVIDES OPERATIONAL UPDATE, COMMENTS ON RECENTLY PROPOSED CHANGES TO ARGENTINA EXPORT TAX

Petrolifera Petroleum Ltd. has made a Sierras Blancas natural gas discovery on its Puesto Morales concession in the Neuquen basin, Argentina; has made a new pool crude oil discovery in the Loma Montosa formation on the block at its 1006 well; and has completed a new zone in the Centenario formation in its 1028 well which flowed light crude oil at 410 barrels per day (bbl/d).

The 1050 well, situated southwest of the northern lobe on the Puesto Morales block in Argentina, tested natural gas with condensate through an eight-millimetre choke at a rate of approximately 2.4 million cubic feet per day with 14 bbl/d of condensate, increasing to 6.5 million cubic feet per day with 37 bbl/d of condensate through a 16 mm choke. The calculated absolute open flow (AOF) was 7.5 million cubic feet per day with some reservoir constraints indicated. The well will be tied into the company's new high-pressure natural gas line in the next several weeks.

The 1006 well, situated in proximity to the La Ramona well, which was the first modern well drilled on the block several years ago, recently flowed light gravity crude oil at a rate of 350 bbl/d from zone LM9 in the Loma Montosa formation. Results were obtained after a frac of the zone, and proved up the presence and productivity of this zone, which to date had only been completed in structurally higher positions for natural gas. Follow-up drilling and testing are under way at other nearby locations.

The company also recently completed a new upper zone in the Centenario formation in the 1028 well, located on the eastern edge of the Puesto Morales block. This was undertaken after the initial productive zone started to produce at higher water cuts; the new zone has commenced flowing light gravity crude oil at a rate of 410 bbl/d.

Petrolifera continues to drill actively in Argentina with four rigs and four service rigs operating on its Puesto Morales/Rinconada concession. Seismic acquisition has commenced on the company's Gobernador Ayala II concession in La Pampa province, Argentina. Additional 3-D seismic programs are scheduled early next year on the Vaca Mahuida and Puesto Guevara concessions in the province of Rio Negro. The company's new field facilities are anticipated to be completed shortly, including the water treatment plant, initiation of the planned waterflood at the northern and central lobe, and commencement of deliveries of high-pressure natural gas through the new pipeline built from Puesto Morales to Medanito. Petrolifera anticipates that by year-end it will have invested over $90-million (Canadian) during 2007 in Argentina and has established a preliminary budget of $76-million (Canadian) for 2008.

Recently, the government of Argentina introduced an increase in the export tax for crude oil and refined products which has the effect of setting a limit on the realizable price for crude oil sold within the country. While the tax on crude oil exports raises little in the way of revenue for the state, it does result in a subsidy for consumers. The company is still analyzing the full impact of the increased tax, which appears to set a ceiling of approximately $42 (U.S.) on the price of a barrel of light crude oil. With assumed sales of 10,000 bbl/d, after taking into account the lower income taxes which would be payable to the government and lower royalties which would be payable to the host provinces due to the price reduction, it appears there would be an approximate 8-per-cent reduction in the company's cash flow from operations before changes in working capital at these assumed sales levels, referencing the current level of actual selling prices and netbacks which have been achieved by Petrolifera thus far in 2007. Accordingly, Petrolifera will be re-examining its previously announced capital budget to determine which, if any, of its anticipated 2008 Argentinean projects will have to be deferred or eliminated due to the lower level of anticipated cash flow relative to its actual and forecast sales levels anticipated to be achievable during the year.

In Peru, progress continues on the company's 2-D seismic acquisition on Ucayali block 107. The program continues on schedule with completion still anticipated for late February to early March, 2008. Work continues on securing EIA approval for the Maranon block 106 program. Efforts are also progressing with respect to securing a heli-transportable rig capable of drilling to approximately 14,000 feet for the first of several anticipated wells during the latter half of 2008 and into 2009.

Work on the Colombian blocks primarily consists of continuing evaluation of all available technical data in preparation for geophysical activity in 2008 and for drilling on the Sierra Nevada I licence in the second half of next year.

We seek Safe Harbor.

Petrolifera provides operational update

Petrolifera provides operational update, comments on recently proposed changes to Argentina export tax

08:36 EST Monday, November 19, 2007

    <<    -   New Sierras Blancas natural gas discovery at 1050 well    -   New pool Loma Montosa crude oil discovery at 1006 well    -   New zone flowing light crude oil at 1028 well    >>

CALGARY, Nov. 19 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that it has made a Sierras Blancas natural gas discovery on its Puesto Morales Concession in the Neuquén Basin, Argentina; has made a new pool crude oil discovery in the Loma Montosa Formation on the Block at its 1006 well; and has completed a new zone in the Centenario Formation in its 1028 well which flowed light crude oil at 410 bbl/d.

The 1050 well, situated southwest of the northern lobe on the Puesto Morales Block in Argentina, tested natural gas with condensate through an 8 mm choke at a rate of approximately 2.4 mmcf/d with 14 bbl/d of condensate, increasing to 6.5 mmcf/d with 37 bbl/d of condensate through a 16 mm choke. The calculated absolute open flow (AOF) was 7.5 mmcf/d with some reservoir constraints indicated. The well will be tied into the company's new high pressure natural gas line in the next several weeks.

The 1006 well, situated in proximity to the La Ramona well, which was the first modern well drilled on the block several years ago, recently flowed light gravity crude oil at a rate of 350 bbl/d from zone LM9 in the Loma Montosa Formation. Results were obtained after a frac of the zone, and proved up the presence and productivity of this zone, which to date had only been completed in structurally higher positions for natural gas. Follow up drilling and testing is underway at other nearby locations.

The company also recently completed a new upper zone in the Centenario Formation in the 1028 well, located on the eastern edge of the Puesto Morales Block. This was undertaken after the initial productive zone started to produce at higher water cuts; the new zone has commenced flowing light gravity crude oil at a rate of 410 bbl/d.

Petrolifera continues to drill actively in Argentina with four rigs and four service rigs operating on its Puesto Morales/Rinconada Concession. Seismic acquisition has commenced on the company's Gobernador Ayala II concession in La Pampa Province, Argentina. Additional 3D seismic programs are scheduled early next year on the Vaca Mahuida and Puesto Guevara Concessions in the Province of Rio Negro. The company's new field facilities are anticipated to be completed shortly, including the water treatment plant, initiation of the planned waterflood at the northern and central lobe and commencement of deliveries of high pressure natural gas through the new pipeline built from Puesto Morales to Medanito. Petrolifera anticipates that by year end it will have invested over C$90 million during 2007 in Argentina and has established a preliminary budget of C$76 million for 2008.

Recently, the Government of Argentina introduced an increase in the export tax for crude oil and refined products which has the effect of setting a limit on the realizable price for crude oil sold within the country. While the tax on crude oil exports raises little in the way of revenue for the state, it does result in a subsidy for consumers. The company is still analyzing the full impact of the increased tax, which appears to set a ceiling of approximately US$42 on the price of a barrel of light crude oil. With assumed sales of 10,000 bbl/d, after taking into account the lower income taxes which would be payable to the government and lower royalties which would be payable to the host Provinces due to the price reduction, it appears there would be an approximate eight percent reduction in the company's cash flow from operations before changes in working capital ("cash flow") at these assumed sales levels, referencing the current level of actual selling prices and netbacks which have been achieved by Petrolifera thus far in 2007. Accordingly, Petrolifera will be reexamining its previously announced capital budget to determine which, if any, of its anticipated 2008 Argentinean projects will have to be deferred or eliminated due to the lower level of anticipated cash flow relative to its actual and forecast sales levels anticipated to be achievable during the year.

In Peru, progress continues on the company's 2D seismic acquisition on Ucayali Block 107.

The program continues on schedule with completion still anticipated for late February to early March 2008.

Work continues on securing EIA approval for the Maranon Block 106 program. Efforts are also progressing with respect to securing a heli-transportable rig capable of drilling to approximately 14,000 feet for the first of several anticipated wells during the latter half of 2008 and into 2009.

Work on the Colombian blocks primarily consists of ongoing evaluation of all available technical data in preparation for geophysical activity in 2008 and for drilling on the Sierra Nevada I license in the second half of next year.

Petrolifera Petroleum Limited is a public Canadian crude oil and natural gas company engaged in exploration, development, production and sales of crude oil and natural gas in Argentina, while advancing its exploration plans in both Colombia and Peru, where it holds extensive and prospective acreage. This balanced and diversified exposure mitigates the company's overall risk profile. The company's common shares are listed for trading on the Toronto Stock Exchange under the symbol PDP.

For further information: R. A.Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone (403) 538-6202, Fax (403) 538-6225, inquiries@petrolifera.ca; www.petrolifera.ca

Bad Day Ahead...Due To Citibank

Citigroup under pressure in pre-market

Monday, November 19, 2007

Citigroup has slid nearly 3 per cent in pre-market trading on Monday after Goldman Sachs downgraded the stock to its “Americas sell list” from “neutral,” warning of many industry- and firm-specific challenges in the next six months, which will ultimately drive the No. 1 U.S. bank’s underperformance relative to its peers.

Goldman assumes Citi will take an $11-billion (U.S.) write-off in the fourth quarter of 2007, at the high end of the bank’s guidance, and also an additional $4-billion write-off in the first quarter of 2008 on its remaining subprime and collateralized debt obligations portfolios.

The brokerage also cut its price target on Citigroup $33, dropping its 2008 and 2009 earnings estimates to $3.80 a share and $4.60 a share, from $4.65 and $5.20, respectively.
Citi shares are changing hands at $33.08, down from Friday’s NYSE close of $34.

Oil prices rise as OPEC weighs dollar impact

PABLO GORONDI

Monday, November 19, 2007

Oil prices rose Monday with more talk among OPEC members about converting their cash reserves to the euro and away from the U.S. dollar.

There is also doubt a possible OPEC output hike next month would get more supplies to market in time for the northern winter.

Fresh purchases of the new Nymex expiry — the December contract expired Friday — were also behind some of the gains.

Light, sweet crude for January delivery rose 81 cents to $94.65 (U.S.) a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract rose $1.77 to settle at $93.84 a barrel on Friday.

In London, January Brent crude futures added 53 cents to $92.15 a barrel on the ICE Futures exchange.

New comments about the dollar arose during a weekend summit, where the heads of state of the Organization of Petroleum Exporting Countries sought to find ways to mitigate the adverse impact the battered U.S. currency has had on revenues.

Oil is priced in U.S. dollars and the currency's depreciation has contributed to rising crude prices and eroded the value of dollar reserves. Cartel officials have resisted pressure to increase oil production to ease prices.

“The fact that the OPEC members are talking about issues like the weak U.S. dollar and not talking about raising output is supportive of strong pricing and so we're seeing signs of the market gaining strength,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Iranian President Mahmoud Ahmadinejad, in Riyadh, Saudi Arabia, called the dollar a “worthless piece of paper,” and said the cartel's members have expressed interest in converting cash reserves into a currency other than the U.S. dollar — a sentiment echoed by Venezuelan President Hugo Chavez, who called the euro a better option.

There had been speculation over whether OPEC would raise production at the meeting following recent oil price increases that have closed in on $100 a barrel. U.S. Energy Secretary Samuel Bodman had called on OPEC to raise output last week, but cartel officials say they will hold off any decision until the group meets next month in Abu Dhabi in the United Arab Emirates.

Some analysts say a decision to increase output next month is unlikely to strengthen supplies to meet peak winter demand season.

“Even if the OPEC ministers decide to raise output in early December, that would likely become effective only in January so by the time the oil gets to the market, the winter season would essentially be over,” Mr. Shum said.

OPEC officials have also cast doubt on the effect any output hike would have on oil prices, saying the recent rise has been driven by the falling dollar and financial speculation by investment funds, rather than any supply shortage.

In other Nymex trading, heating oil futures gained 1.79 cents to $2.6050 a gallon while gasoline futures added 1.56 cents to $2.3910 a gallon.

Natural gas futures jumped 7.2 cents to $8.073 per 1,000 cubic feet.

Could yuan spell relief for sky-high dollar?

SHAWN McCARTHY

Sunday, November 18, 2007

OTTAWA — China's growing inflation problem may represent one of the best hopes that Canadian manufacturers and other exporters have for some relief from a sky-high loonie.

While the Bank of Canada grapples with inflationary pressures that could preclude a significant cut in interest rates – which would take pressure off the dollar – China may be forced to increase the value of its currency to combat inflation.

At a meeting in South Africa this weekend, finance ministers and central bankers from 20 leading nations expressed concern about a slowdown in global economic growth even as food and energy prices rise sharply around the world.

The financial leaders warned that turbulence in currency and financial markets will continue over the medium term as the global economy copes with near-record oil prices, rapid Asian growth and a slowdown in the United States, and a global credit crunch sparked by the crisis in the U.S. subprime mortgage market.

As he has in the past, Finance Minister Jim Flaherty urged China to boost the value of the yuan, arguing that Canada has borne an undue proportion of the burden from a skidding U.S. dollar while China's fixed-rate currency has sheltered its export-oriented economy.

Other finance ministers echoed his call – as did the managing director of the International Monetary Fund, though not as bluntly aimed at China. But while China is unlikely to respond to external pressure, it has pressing domestic reasons to boost the value of its currency.

In a weekend conference call from the resort Kleinmond, Bank of Canada Governor David Dodge said the Chinese central bank governor noted the Asian giant is experiencing an uncomfortable rate of increase in consumer prices.

China has tried without much success to slow the growth rate of its red-hot economy, and may have to resort to currency appreciation to slow down its export growth and take pressure off imported energy and food prices.

“It's very much in their interest [to increase the value of the yuan] because inflation is a huge political as well as economic problem for them,” Mr. Dodge said. “It's very much in their interest to follow policies to deal with their own domestic issue, and that at the moment is inflation.”

Don Drummond, chief economist for the Toronto-Dominion Bank, said consumer prices are rising at a 6-per-cent clip in China, while its U.S. dollar reserves are growing to worrisome levels.

So while China is unlikely to respond to hectoring from countries such as Canada, it may act on its own. Such a move would take pressure off a handful of free-floating currencies, including those of commodity-based economies such as Canada, Australia, South Africa and Brazil.

The G20 finance leaders warned that the twin currency and financial volatility is not likely to calm down soon, and will likely result in slower global growth.

Mr. Dodge said the Bank of Canada would respond to those factors, which are more worrisome than they were even a month ago. Many economists expect the central bank to begin cutting rates to reflect the higher value of the loonie and the slower growth expected in the United States, Canada's largest export market.

Last week, Merrill Lynch Canada Inc., J.P. Morgan Securities Canada Inc., and the Royal Bank of Canada forecast the central bank would cut its trendsetting rate next month, but CIBC World Markets and TD Bank were more circumspect.

TD's Mr. Drummond said the Canadian economy has been growing at an unsustainable rate and Mr. Dodge had been poised to raise rates before the credit crunch escalated in the United States this fall and the loonie shot well above $1 (U.S.).

Despite the credit and housing market problems, even the U.S. economy is expected to maintain 2-per-cent growth next year, after a fairly robust 2007. Fuelled by stronger exports – reflecting a sharply devalued dollar – the U.S. economy grew at a 3.9-per-cent clip in the third quarter.

Unless the Canadian dollar climbs back toward its high-water mark of $1.10 or the American economy does a swan-dive, the Bank of Canada is likely to stand pat on interest rates, Mr. Drummond said.

Friday, November 16, 2007

PDP Takes A Hit On Argentia Increased Taxes

OUCH!

ABCP Write Downs By Banks Follow A Pattern

Statistics 101

Thursday, November 15, 2007 Harry Koza

TORONTO (GlobeinvestorGOLD) - Let’s brush up on Statistics 101.

Market rocket scientists and quants use the term sigma (geek-speak for standard deviation) to measure how likely an event is to occur. Using the normal bell curve so beloved of university statistics professors, about 68 per cent of events occur within 1-sigma of the mean, or plus or minus one standard deviation. Let’s say that our event is a one-day move in the stock market. Thus, 68 per cent of the time, the daily move of, say, the S&P/TSX composite index, will be within one standard deviation. You can look up the mathematical definition of standard deviation, but for our purposes, suffice to say it measures the volatility of results.

About 95 per cent of daily market moves would fall within two standard deviations of the mean. A 3-sigma range encompasses about 99 per cent of all daily moves, 4-sigma about 99.99 per cent, and 5-sigma, 99.99994 per cent. So, the odds of a one-day market move outside of a 5-sigma range happening is about as likely as you being abducted by aliens.

And a 10-sigma event, well, that would be about as likely as the nutbars who genuinely believe they have been abducted by aliens (and there are a lot of them out there, Mulder) summoning the Mother-ship by holding hands and humming Duelling Banjos.”

Yet, oddly enough, improbable market events seem to happen with alarming regularity.

The Crash of ’87 was a 20-sigma event, or one that only happens once every 100,000 years or so. Two years later, in 1989, the Dow Jones industrial average dropped 8 per cent in one day, a 7-sigma event, and in 2003, natural gas prices shot up 42 per cent in one day, a 12-sigma event.

Years ago, someone told me that when they design offshore oil rigs, they build them to withstand a 100-year wave, one so big that it only occurs once every hundred years. Then they tow the rig out into the North Atlantic, and it gets hit by half a dozen hundred-year waves the first week.

We’re seeing a similar thing in the credit markets these days. Subprime mortgages, the securitizations and collateralized debt obligations (CDOs) they’ve been packaged into, the special investment vehicles (SIVs) that held those securitizations, the investment banks that created those SIVs – they’re all getting whacked. Banks and dealers are taking big writedowns almost every day. A billion here, a few more billion there – next thing you know you’re talking real money.

No mea culpa from the wizards of Wall Street, though. They just shrugged, threw up their hands and explained, as did Goldman Sachs, “We’ve just been hit by a 25-sigma event.” Who could have predicted that?

The Wall Street wizards used sophisticated mathematical models to manage the risk of their creations, and the models, as it turns out, were useless. Models used to price the risk of subprime mortgage securitizations, for instance, were based on assumptions about default risk that were based on historical data, data from the days when people actually needed a down payment, a job, and a good credit history in order to get a mortgage loan.

Then, when they diced and sliced the subprime loans into tranches of variously rated CDO paper, they assumed that the models used to price these tranches were immune to the vagaries of the real world, where fear and greed, not equations, rule.

And so, as defaults and foreclosures rose, and spreads widened, investors suddenly woke up to the fact that the models were flawed, and started wondering just what was in those securitizations they owned. Those who already owned the stuff – whether CDO, asset-backed commercial paper (ABCP) or one of the many other sporty variants doesn’t really matter, they’re all equally sweaty these days – started looking for a bid. Alas, those who didn’t already own the stuff weren’t looking to buy a pig in a poke, not at the asking price, anyway, so buyers and sellers all of a sudden could not get together and transactions didn’t happen. Liquidity vanished.

The ABCP market froze up. The CDO market dried up. Chief executives at big Wall Street firms were suddenly washed up.

Still, every time a bank or investment dealer announces a big writeoff related to their CDO or subprime or SIV exposure, their stock goes up, seemingly on the notion that all the bad news is out now, so it must be time to buy. I dunno, though. I have a feeling that this whole credit crunch thing is just getting rolling, and is going to get a lot uglier before it is through, and there will be plenty more big writedowns in the months ahead.

This week, General Electric announced that investors in its $5-billion (U.S.) Asset Management Enhanced Cash Trust would only be able to get their money out at 96 cents on the dollar. Surprise, what everyone thought was a safe, boring investment yielding a few beeps more than Treasury bills turns out to have been (as of June 30) one-third invested in home-equity securitizations and a quarter invested in residential mortgage-backed securities. Gee, what were the odds of that happening?

They are bleeding us like pigs ...yet again

th175_cartoon_look_out_below_large.jpg picture by bc200O

The Bashers Handbook

IS IT EASIER TO SCARE PEOPLE INTO SELLING THAN IT IS TO SCARE PEOPLE INTO BUYING A STOCK?

I have asked some knowledgeable investors this question and the answer is always:

"YES, OF COURSE YES!"

WHO BASHERS PREY UPON

Consider the elderly that are investing for retirement, they find their way to the message boards for validation only to see false posts about "SEC Violations" and "Class action suits"... or the head of a "typical growing family", with children to put through college, who is monitoring a message board only to read posts by a "pack of 15 to 20 Bashers" (probably 5 or 6 under various alias's) posting continuous disinformation... what do you think these new investors will do?

It's safer to not buy or even sell the stock, put the MONEY back in the bank than to deal with all this whirl wind of "unsupported" negative chaff.

The Internet has lured a whole new class of investor into the market. A new investor is just that - New! This new investor, while learning the basics, is particularly vulnerable to the tactics of professional Bashers. New investors tend to lurk in the background of message boards, content to form independent opinions based on what they read with their own eyes. Very often, honest, intelligent and cautious people can easily be overcome by a well orchestrated propaganda effort.

You must always remember that their is a lot of money to be made in just the motion of a stock UP or DOWN it doesn't matter! And Bashers have money at risk just as you do. But they have the edge of fear, lies, and falsehoods to post while preying on the un-initiated. The average investor dose not have the edge of organized deception.

Recent revelations have indicated that even Market Makers (those charged with keeping the playing field level) have been involved in stock manipulation by Bashing on a stock message board. HAVE NO DOUBT THAT THIS IS A REAL THREAT!

Lesson 1: Remember, BASHERS NEVER Bash A BAD STOCK. Check the boards for stocks with no potential. They never have any Bashers. Bashers only go after stocks that are moving up or have excellent potential to do so. Bashers work to bring the price down to either increase their position at the expense of others or help a Short make their bones.

Lesson 2: BASHERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New startup companies always have a few bits of bad news. The Basher will post this over and over again. Unsophisticated Bashers will try to freshen up old news with a new date or by-line in an attempt to fool you.

Lesson 3: BASHERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question. THEY KNOW IT ALL! There is no positive comment they won't Bash. They try to control the board. True longs may have to confront the Bashers or they will appear to the newbies as being the people with all the information. This is best accomplished by posting positive, well researched data on the company, repetitively, while trying hard not to engage the Bashers in direct repartee. REMEMBER - LONGS... RESIST USING THE BASHERS ALIAS!

Lesson 4: BASHERS WILL LIE TO YOUR FACE. Never trust a Basher. The truth on startup companies is that they make mistakes. What new company hasn't? The Basher will compare your issue to a another companies, financials - deals - management, etc., trying to lure you into making an Apples to Oranges comparison. Remember each company is unique and while it is prudent to seek out established indicators, do so with care and don't take someone else's word for it. Strive to come up with at least a "six-pack" of indicators so your vision of the state of a company is not tied to a single barometer. Not doing so is tantamount to going to a Race Track and betting on the "Pretty Brown Horsey". BASHERS WANT TO WHISPER IN YOUR EAR - PLANT A SEED OF DOUBT, AND HOPE THAT YOU ARE NOT SAVVY ENOUGH TO RESEARCH THE TRUTH ON YOUR OWN. This is how they achieve their greatest success.

DOUBT + FEAR + LAZINESS = BAIL OUT!

This is your investment... work for it, protect it and don't panic on the words of very shadowy figure that "has your best interest in their heart". Consider that one factor: Someone you have never met, is not a member of your family, is now, out of the goodness of their hearts - GIVING YOU FREE ADVICE (that you didn't ask for). It's a no brainer. They have motives $$$$$$$$$$$$.

Lesson 5: Bashers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the vague statements they do. They rely on you being to lazy to research their droppings other than to scan the board for others opinions. This is particularly dangerous when you consider that Bashers work in packs and often validate and back up each others nonsense with what appears to be "innocuous and unsolicited" verification by comrade Bashers. Let's face it, we are all conditioned to "believe" everything we see in writing. If others by virtue of their "posts" also confirm this belief, then we are subconsciously doomed to swallow the hook, line and sinker... Basher - 1 Honest Investor - 0

Lesson 6: The Bashers PLAY ON YOUR LACK OF KNOWLEDGE. They can lie about information and you won't know the difference (unless you have done your own DD on the company and know the truth and facts).

Lesson 7: Bashers play on your lack of patience. You have held a stock for a while. You knew it will be a big stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN. That's when the Basher is best. You are tired. You have forgotten the goal for the stock was to hold it for one year. The Basher is bothersome, so you dump it on a bad day. Some others also dump. Then you get mad for your loss and return to let everyone know how mad you are. Then you turn into a semi-Basher as well. THE BASHER HAS WON, AND GAINED A NEW ALLY - YOU!

Lesson 8: BRING THE PRICE DOWN. That is the Basher's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to scare the newbies that are just investigating a stock. They are trying to wear down the faithful longs on the board and gain free reign and control.

Source

It was a nasty flashback to August.

Central banks buttress shaky markets

HEATHER SCOFFIELD

Thursday, November 15, 2007

It was a nasty flashback to August.

The Bank of Canada and the U.S. Federal Reserve injected huge amounts of cash into wobbly money markets Thursday as lenders lost confidence in borrowers and drove up short-term credit rates around the world.

The Bank of Canada infused $1.57-billion into the overnight market Thursday, the biggest such injection since 2000, surpassing even the large infusions made during the height of the credit crunch in August.

The Federal Reserve also intervened heavily, pumping in $47-billion (U.S.) to maintain its key interest rate.

“It seems like it's a global issue,” said Ted Carmichael, chief economist at J.P. Morgan Securities Canada.

“It's an indication that banks are extra cautious about lending to each other.”

Volatility has been rattling stocks for days, and the Canadian dollar's ups and downs over the past week have been nothing short of remarkable, economists noted.

After zooming up past $1.10 (U.S.) last Wednesday, the currency has since dropped precipitously, closing Thursday at $1.0151. The Canadian currency hasn't seen moves this extreme for at least a decade, economists at Bank of Nova Scotia and Toronto-Dominion Bank said.

Since last January, when faith in securities tied to subprime mortgage lending began to soften, distrust about credit in general has been rising, and risk premiums have been under pressure, said David Wolf, chief economist at Merrill Lynch Canada.

Market fears crested in August, when lenders stopped trusting borrowers and short-term credit dried up.

Central banks injected liquidity daily, nursing the credit markets back to life.

And when the U.S. Federal Reserve cut rates in September, some confidence returned.

But the past two weeks have seen a return of volatility and a renewed distrust about the ability of markets and financial institutions to withstand the fallout of the U.S. subprime problem.

“There's a tremendous amount of fear in markets over all,” said Camilla Sutton, a Toronto-based currency strategist for Scotia Capital.

That's partly because of risk-aversion, too.

With an eye on a slowing U.S. economy, skittish speculators are pulling out of the carry trade market (which makes bets against the Japanese yen) and piling into the safer U.S. dollar, sideswiping other currencies, especially commodity-based currencies such as Canada's.

This week, the queasiness spilled over from foreign exchange and stock markets and into short-term credit markets – which were still on edge anyway, because of the trouble in August.

“We've been noticing there's been pressure in the overnight market for the past few days,” Ms. Sutton said.

Fuelled by rumours about certain banks refusing to lend to other banks, or certain borrowers finding it hard to access credit, interbank lending rates have risen in the past few days, and the Federal Reserve's key rate has been bouncing frequently above the Fed's target.

Thursday, the Bank of Canada needed to intervene to defend its target, too – making a $980-million injection just before noon, followed by another $700-million in the early afternoon.

(The central bank is obliged to defend its target rate. If the overnight rate trades above the bank's target, it needs to lend money at the lower bank rate to drag the market rate back to target.)

Still, the Bank of Canada is being careful not to send signals of panic, Mr. Carmichael said. “They're not indicating that this is anything other than them going about their normal business,” he said.

The broader context of Thursday's liquidity problems, however, can't be ignored, he added. The central banks' injections are the tip of the iceberg, signalling that commercial banks are afraid of lending to each other.

“And if they're cautious about lending to one another, then they'll be cautious about lending to businesses and consumers,” Mr. Carmichael said.

“They're protecting their balance sheets and are defensive.”

With files from reporter Tavia Grant

Thursday, November 15, 2007

Zinc Is Falling Hard As Inventory Rises

Playing Markets Lately Is Like Dodging Bullets

Bank of Canada injects liquidity

HEATHER SCOFFIELD

Thursday, November 15, 2007

OTTAWA — The Bank of Canada has moved twice Thursday to inject liquidity into money markets, issuing a total of $1.6-billion in “specials” so far.

It's the first time this month that the central bank has intervened, and is the highest liquidity injections since the credit crunch boiled over in August, and the biggest injection since January, 2000.

The central bank did not provide any official explanation of why it had to intervene so aggressively, except to say it was defending its key interest rate.

The U.S. Federal Reserve Board also injected significant liquidity on Thursday, leading analysts to believe the money market's liquidity problems in Canada are part of a global problem.

The Fed injected $47.25-billion (U.S.), the biggest injection since 2001, according to Bloomberg. However, about $40-billion of that was a renewal of a previous special operation that was expiring.

“It's global. Credit concerns seem to be pushing up the [inter-bank lending] rates,” said Ted Carmichael, chief economist for J.P. Morgan Canada.

If securities in Canada's overnight money market start trading at rates above the central bank's target rate of 4.5 per cent, the higher rate flags a liquidity problem to the Bank of Canada. The central bank routinely responds by making extra credit available at the target rate, thereby dragging the market rate back to target.

The Bank of Canada, like other central banks around the world, intervened heavily in August when the credit crunch was in full swing, and banks – concerned about the risk of counterparties' exposure to investments linked to subprime mortgages – scaled back their lending to each other.

Little intervention has been needed since then, however. The Bank of Canada had a couple of weeks of heavy intervention at the end of October, but other central banks have scaled back.

But inter-bank lending rates have risen above normal levels recently, said Mr. Carmichael, which suggests that banks are growing reluctant to lend to each other again.

“It's not clear that this is a one-day problem or the first sign of something that could get worse going into year-end,” he said.

He said he did not sense any panic on the part of the Bank of Canada about credit conditions. But he said the need for the central bank and the Fed to intervene suggests that the credit crunch is far from over.

“They [the liquidity injections] do indicate that there's real caution among banks about lending to one another,” he said. “And if they're cautious about lending to one another, then they'll be cautious about lending to businesses and consumers. They're protecting their balance sheets and are defensive.”

Canadian banks have announced a string of writedowns this week because of exposure to subprime loans in the United States. And there are signs that lending conditions are growing tighter in Canada.

Still, the Bank of Canada says overall, the tighter lending conditions are about the equivalent of a central bank hike of a quarter of a percentage point, no more.

TSX financials weighing on market

Thursday, November 15, 2007

A recent selloff of TSX financial stocks has sent the composite index to a session low of 13,511, down 263 points, at around 2:45 p.m. EST.

The financial group is down 1.9 per cent, led by CIBC’s 3.5 per cent drop and Scotiabank’s 2.8 per cent loss and Royal Bank’s 2.5 per cent drop.

Only consumer discretionary and health care stocks are in the black.

Virginia Mines, Breakwater drill 30.45 m of 9.31% Zn

2007-11-14 10:00 ET - News Release

See News Release (C-VGQ) Virginia Mines Inc

Mr. Andre Gaumond of Virginia reports

COULON JV PROJECT LENS 44 YIELDS 9.31% ZN, 1.67% PB, 0.88% CU AND 69.18 G/T AG OVER 30.45M

Virginia Mines Inc. has provided new results from its current exploration program on Coulon, a joint venture property with Breakwater Resources Ltd., located 15 kilometres north of the Fontanges airport, Quebec middle-north. As Breakwater Resources fulfilled all its payment obligations totalling $180,000 and $7.5-million in exploration work, it now owns a 50-per-cent interest in the Coulon JV property.

Current exploration includes prospecting and geological mapping, diamond drilling, a VTEM heliborne survey as well as borehole InfiniTEM surveys. The 18 new holes announced tested lenses 44 (seven holes), 43 (three holes) and 8 (one hole), and the area of the Spirit showing (seven holes).

Lens 44 yields 9.31 per cent zinc, 1.67 per cent lead, 0.88 per cent copper and 69.18 grams per tonne silver over 30.45 metres

Seven new holes tested lens 44 at vertical depths of 430 m to 600 m (longitudinal Section 44/08). Hole CN-07-92 intercepted to a vertical depth of 460 m a thick massive sulphide zone that graded 9.31 per cent Zn, 0.88 per cent Cu, 1.67 per cent Pb and 69.18 g/t Ag over 30.45 m, including two intervals that returned 10.64 per cent Zn, 2.14 per cent Cu, 1.46 per cent Pb and 89.64 g/t Ag over 8.05 m (589.1 to 597.15 m), and 12.51 per cent Zn, 0.48 per cent Cu, 2.19 per cent Pb and 74.06 g/t Ag over 15.7 m (603.85 to 619.55 m). Located 35 m farther north, hole CN-07-105 intersected two main zones of massive sulphides that returned 7.4 per cent Zn, 0.9 per cent Cu, 1.33 per cent Pb and 81.3 g/t Ag over 15.3 m (474.45 to 489.75 m), and 9.26 per cent Zn, 1.31 per cent Cu, 33.81 g/t Ag over 14.95 m (534.15 to 549.1 m). These intersections are at vertical depths of 430 and 450 m, respectively. Some other thinner massive sulphide lenses are also present in hole CN-07-105. The mineralized intersections of holes CN-07-92 and CN-07-105 represent the north extension of large mineralized zones previously announced in holes CN-07-85 and CN-07-85B, thus confirming the presence, at this depth, of a thick, high-grade zone within lens 44.

Furthermore, two of the new holes testing lens 44 confirmed the continuity of the mineralization at vertical depths of over 500 m. Hole CN-07-106 intercepted, to a vertical depth of 530 m, a massive sulphide zone grading 8.21 per cent Zn, 0.72 per cent Cu and 61.82 g/t Ag over 3.75 m. Hole CN-07-103 intersected to a vertical depth of 575 m a massive sulphide zone grading 6.39 per cent Zn, 0.6 per cent Cu and 13.47 g/t Ag over 3.5 m. This intersection is the deepest one obtained to date in lens 44.

The three other holes testing lens 44 did not return economic intersections. Hole CN-07-95 crosscut at a vertical depth of 460 m a semi-massive sulphide zone composed mainly of pyrite and pyrrhotite, which graded 0.36 per cent Zn, 0.73 per cent Cu and 8.5 g/t Ag over 8.6 m. This sulphide zone is followed in the hole by a large alteration zone of nearly 100 m thick. The presence of a pegmatite intrusion of approximately 40 m in thickness in the core of this alteration zone might explain the absence of other mineralized intersections in hole CN-07-95. Finally, holes CN-07-100 and CN-07-109 intercepted alteration zones of 10 to 30 m in thickness with disseminated sulphides locally, at vertical depths of 580 m and 600 m, respectively. All these holes will be the object of borehole InfiniTEM surveys this fall.

Lens 44 is north-south oriented and is dipping vertically to steeply to the west. It is now confirmed over a lateral distance of 300 m and at a vertical depth of 575 m. Lens 44 remains totally open at depth. It is now without any doubt the most important mineralized lens on the Coulon JV project and is currently the focus of additional drilling.

The continuity of lens 43 once more confirmed by three holes

Three new holes tested lens 43 and have once again proved the good continuity of this lens with three significant mineralized intersections (longitudinal Section 43). Holes CN-07-99 intercepted at a vertical depth of 300 m a massive sulphide zone that yielded 8.9 per cent Zn, 1.95 per cent Cu and 31.49 g/t Ag over 2.7 m. This intersection extends the mineralization by 80 m from holes CN-07-84 and CN-07-98 previously announced. Holes CN-07-104 and CN-07-104B confirmed the continuity of the mineralization at 70 m over and under hole CN-07-79 (already published) respectively. Hole CN-07-104 intercepted at a vertical depth of 290 m a disseminated to semi-massive sulphide zone that yielded 0.64 per cent Zn, 0.9 per cent Cu and 9.15 g/t Ag over 10 m, including an interval grading 0.86 per cent Zn, 1.23 per cent Cu and 10.55 g/t Ag over 5.45 m. As for hole CN-07-104B, it intersected a semi-massive to massive sulphide zone that yielded 4.06 per cent Zn, 1.36 per cent Cu and 13.93 g/t Ag over 1.75 m at a vertical depth of 430 m. This intersection is the deepest one obtained to date in lens 43.

Lens 43 is northeast-southwest oriented and seems to present a variable dip toward the northwest. The mineralization is confirmed over a lateral distance of 340 m and at a vertical depth of 430 m. It remains open in all directions and additional drilling is planned to pursue the evaluation of this very significant mineralized lens.

Lens 8

Only one hole tested lens 8 during the recent period (longitudinal 44/08). Hole CN-07-108 intercepted an alteration zone of several tens of metres in thickness, including many intervals with disseminated sulphides reaching up to 20 per cent pyrite, 10 per cent pyrrhotite and 1 per cent chalcopyrite locally. This intersection is located at a vertical depth of 275 m at the south border of lens 8.

Lens 8 is developed at the same stratigraphic level as lens 44 but is located 300 m farther north. It is north-south oriented and has a variable, but generally subvertical, dip. Lens 8 is now confirmed over a lateral distance of 250 m and to a vertical depth of 410 m, and remains open at depth. It will be the object of additional drilling.

Spirit showing area

Three new short holes tested the lateral extensions of the Spirit showing at 50 m on both sides of the discovery. Holes CN-07-101A and 101B, on a section 50 m south of the showing, and hole CN-07-102, on a section 50 m north of the showing, intercepted favourable volcanics but did not intersect mineralization.

However, hole CN-07-94A, testing a weak Maxmin conductor located 330 m southwest of the Spirit showing, intercepted a disseminated to semi-massive sulphide zone that returned 4.11 per cent Zn, 2.32 per cent Cu and 62.08 g/t Ag over 6.15 m. Hole CN-07-94B, drilled directly under this intersection, intercepted a thin disseminated sulphide zone that yielded 1.09 per cent Zn, 0.58 per cent Cu and 17.5 g/t Ag over one m. These two intersections are located at vertical depths of 30 and 40 m, respectively. Additional drilling will be needed to test the lateral extensions of this new mineralized zone and to evaluate its relation with the mineralization of the Spirit showing, located over 300 m to the northwest.

Finally, holes CN-07-96 and CN-07-97, testing other Maxmin conductors located over 500 m to the west of the Spirit showing, intercepted barren mineralized zones (pyrite-pyrrhotite-graphite).

The Spirit showing area remains very promising with a new economic-type intersection associated with a Maxmin conductor. Many other airborne electromagnetic conductors have not yet been confirmed by ground surveys because of the presence of many small lakes in the area. The area will be covered during the winter of 2008 with a surface InfiniTEM survey and will be the object of additional drilling.

VTEM heliborne survey

A VTEM heliborne geophysical survey has recently commenced on the Coulon JV project. This survey will total more than 6,000 linear kilometres over a vast territory of more than 1,000 square kilometres covering the possible extensions of the fertile Coulon volcanic belt. This additional property was acquired following the identification of the Spirit showing in the summer of 2007. The survey should be completed by the end of November, 2007.

All samples have been analyzed at the certified laboratory ALS Chemex in Val d'Or.

Work is carried out by the personnel of Virginia Mines, under the supervision of Paul Archer, geological engineer. Mr. Archer is a qualified person (as defined by National Instrument 43-101) and has more than 25 years of experience in exploration. Mr. Archer reviewed and approved the content of this press release.

We seek Safe Harbor.

Up One Day And Down Hard The Next

Energy stocks help send TSX down 140 points; C$ retreats on manufacturing data
11/15/2007 8:56:00 AM
TORONTO - The Toronto stock market was firmly in the red Thursday morning as investors focused on writeoffs of mortgage-backed securities by financial institutions here and abroad, and energy stocks worsened on data showing rising supplies in the U.S. New York markets were ahead slightly as investors took in inflation data and negative news from the retail sector. Toronto's S&P/TSX composite index retreated 140.16 points to 13,634.38. The TSX Venture Exchange was off 25.02 points to 2,963.74. The Canadian dollar continued to fall in the wake of a warning from a senior official of the Bank of Canada about the economic downside of a sharply higher currency. The loonie dropped 1.19 cents to 102.29 cents US after falling almost eight-tenths of a cent Wednesday. The currency has been on a downward track since hitting a record high a week ago of just over 110 cents US, at the same time oil prices were creeping closer to US$100 a barrel. But it got an extra push Wednesday after Bank of Canada official Paul Jenkins said the dramatic rise in the loonie this year is putting Canada's economic growth in peril. His warning was backed up Thursday by a grim report from the manufacturing sector. Statistics Canada said manufacturing sales declined 0.9 per cent in September to $50.4 billion, continuing a six-month weakening trend. Third-quarter sales were 1.8 per cent lower than those in the second quarter of 2007. The dismal performance happened the same month the Canadian dollar achieved parity with the greenback for the first time since 1976. "The culprit for the falling prices and generally weak real activity is the soaring loonie, suggesting that most factory metrics will remain weak in the months ahead," said BMO Nesbitt Burns senior economist Michael Gregory. "This sector's cries for Bank of Canada rate cuts are going to reach a deafening volume." On Wall Street, the Dow Jones industrials gained 20.4 points to 13,251.41. The Nasdaq composite index rose 2.84 points to 2,647.16 and the S&P 500 index faltered 0.55 of a point to 1,470.03. Shares at Loblaw Cos. (TSX:L) were down $2.61 to $37.98 after third-quarter profit fell to $117 million from $203 million a year-earlier on special charges. However, sales were up 1.4 per cent. Western Canadian Coal Corp. (TSX:WTN) shares plunged 42.26 per cent to 97 cents as its second-quarter loss hit $43.9 million after writedowns and the firm said it needs financing. An analyst report from Scotia Capital says the Bank of Montreal (TSX:BMO) and National Bank (TSX:NA) - the last two major Canadian banks to unveil expected writedowns for the quarter - could disclose a combined charge that totals up to $1 billion. In the past week, CIBC (TSX:CM), Royal Bank (TSX:RY) and Scotiabank (TSX:BNS) have announced writedowns from losses in the U.S. subprime mortgage market - but those losses have been largely offset by gains from the initial public offering of Visa Inc. The TSX financial sector dropped 0.8 per cent as Bank of Montreal added 24 cents to $57.77, National Bank declined 43 cents to $51.80 and Royal Bank eased 43 cents to $51.96. Barclays Capital, a unit of Barclays Group PLC, wrote down US$2.7 billion amid the turmoil in credit markets, but said profit is running ahead of last year's strong performance. The bank had been facing increasing calls to disclose the extent of its exposure to crisis-hit U.S. subprime mortgages and liabilities in the subsequent credit squeeze. The update did not give any information on the wider group's performance, but Barclays said it would provide a full third-quarter update as originally scheduled. The energy sector dipped 1.13 per cent as oil prices lost ground after inventory data from the U.S. Department of Energy showed oil inventories rose by 2.8 million barrels last week, against an expected decline of 300,000 barrels. The December crude contract on the New York Mercantile Exchange fell $1.98 to US$92.11 a barrel. Canadian Natural Resources (TSX:CNQ) dropped $1.25 to C$70.79 and EnCana Corp. (TSX:ECA) declined 68 cents to $66.31. First Calgary Petroleums Ltd. (TSX:FCP) is issuing US$267 million worth of convertible debt "to implement the company's independent development strategy in respect of its Algerian assets." Its shares tumbled 26 cents to $3.28. The gold sector retreated 2.37 per cent as the December bullion contract in New York headed $20.60 lower to US$794.10 an ounce. Barrick Gold (TSX:ABX) was off $1.21 to $39.94. The base metals sector was also weak, down 2.2 per cent as Teck Cominco Ltd. (TSX:TCK.B) moved off 87 cents to $42.27. Ivanhoe Mines (TSX:IVN) was off 32 cents to $12.71 after reporting a third-quarter loss of US$83.1 million or 22 cents per share, compared with a loss of US$66.5 million or 20 cents per share for the same period last year U.S. inflation data came in as expected. The Labour Department's consumer price index rose by 0.3 per cent in October, the same as September's increase and analysts' forecast. The core rate came in at 0.2 per cent, which also met analyst expectations. In earnings news, U.S. retailer J.C. Penney Co. reported a nine per cent drop in fiscal third-quarter profit on weak sales and cut its fourth-quarter outlook, indicating that housing woes are taking a toll on shoppers as well. Its stock retraced 3.77 per cent to US$44.97. Major stock indexes in Europe slumped. Britain's FTSE 100 declined 58.9 points to 6,373.2, Germany's DAX index fell 113.18 points to 7,669.93 and France's CAC-40 shed 42.79 points to 5,570.81. In Asia, Japan's Nikkei stock average closed down 0.67 per cent and Hong Kong's Hang Seng index fell 1.42 per cent. © The Canadian Press, 2007

Wednesday, November 14, 2007

PDP:TSX Octagon Securities Calls For $30.00

When anonymous is biggest buyer I would not be a seller ,

This is ALWAYS Pro Trader accumulation prior to news.

Retail players who are selling today will be sorry that they did.

BUY: Petrolifera Petroleum Ltd.
PDP-TSX: $14.95
Target: $30.00
Warren Verbonac
(403) 750-0497· wverbonac@octagoncap.com
Activity Update
• According to yesterday’s release, Petrolifera’s production in the current
quarter (Q3/07) of 7,563 boed is down from that of the Company’s last
release, of 8,890 boed (with productive capability at that time of over 9,600
boed).
• Our previous Q4/07 production estimate of 15,000 boed has been reduced to
10,000 boed, cutting estimated cash flow by $0.35 to $1.72 for 2007.
• Having had a series of production misses and setbacks during the last two
quarters, Petrolifera has decided to stop providing operating and financial
guidance, and has termed the Puesto Morales field as “at a very advanced
stage” – presumably, production may have peaked from this field.
• The Puesto Morales and Rinconada concession comprises less than 10% of
the Company’s net acreage in Argentina’s Neuquen Basin, which still
provides substantial ongoing drilling opportunities.
• Due to rig availability issues, 11 more locations are expected to be drilled by
year‐end, 10 locations short of the original target.
• Q3 results are expected November 6, including an update on the status of
the $37.7 million in asset backed commercial paper held by the Company.
• We continue to regard Petrolifera’s exploration inventory as one of the most
prospective of any junior. With the first drilling in Peru expected soon, there
is tremendous potential.

We are thus maintaining our BUY recommendation
and $30.00 target price.

Connacher Oil and Gas Limited of Calgary, Alberta was responsible for the creation and financing of Petrolifera and remains the single largest shareholder (13.3 million shares on a fully-diluted basis) Connacher also provides management services to Petrolifera.

Visit Connacher Oil and Gas Limited:
www.connacheroil.com

PDP-Anon Is Accumulating Prior To Drilling Report

When anonymous is biggest buyer I would not be a seller ,

This is ALWAYS Pro Trader accumulation prior to news.

Retail players who are selling today will be sorry that they did.

TORONTO (Dow Jones)--GMP Securities L.P. cut its stock-price target on Petrolifera Petroleum Ltd. (PDP.T) to C$19 from C$23, noting that logistical challenges are leading to delays in conducting its Argentinian operations.

In a research report, analyst David Beddis said that, while the company's third-quarter production exceeded second-quarter output, it was lower than expected. Petrolifera produced about 7,562 barrels of oil equivalent a day in the third quarter, up from 6,932 barrels of oil equivalent in the second quarter. However, in mid-August, Petrolifera said production had increased to 9,000 barrels of oil equivalent a day.

The analyst said Petrolifera gave no update in a news release Monday about current production.

He said Petrolifera expects that a large portion of its field facilities at Puesto Morales will be completed by November, with the remainder to be completed by year-end. In a previous release, it had reported delays in completion of these field facilities.

The company has completed and/or tested eight wells at Puesto Morales, but other than the 1006 and 1050 wells, it hasn't been able to drill any of its planned high impact exploration wells. This is primarily due to the late arrival of its new rig from China and regulatory issues, Beddis said, and as a result management now believes that it won't be able to drill any exploratory locations until 2008.

As a result of delays and drilling that has been pushed into 2008, Beddis lowered his 2007 production forecast to 8,800 barrels of oil equivalent a day from 10,500 barrels. He expects cash flow of C$1.64 a share, down from his previous estimate of C$1.98.

In 2008, Beddis anticipates production of 16,000 barrels of oil equivalent a day, resulting in cash flow of C$2.53 a share. He had previously anticipated production of 19,000 barrels of oil equivalent a day and cash flow of C$3.25 a share in 2008.

Shares of the Calgary-based oil and gas company are trading up 5 Canadian cents at C$15.00 in Toronto Tuesday.

GMP doesn't have an investment-banking relationship with Petrolifera and Beddis doesn't own shares of the company.

Company Web site: http://www.petrolifera.ca

-Tara Zachariah, Dow Jones NewsWires; 416-306-2100

(END) Dow Jones Newswires

10-23-07 1521ET

Source

Petrolifera provides Argentina operating update; active drilling continues; facilities nearing completion; Q3 2007 sales improve over Q2 2007; year over year sales growth 90% 10/22/2007

CALGARY, Oct. 22, 2007 (Canada NewsWire via COMTEX News Network) --

Petrolifera Petroleum Limited (PDP - TSX) hereby provides an operational update for its shareholders, detailing activity and certain operating results since our last operating update press release on September 12, 2007.

On a year-to-date basis, crude oil sales in 2007 were up 91 percent over 2006 to 8,376 bbl/d, while natural gas sales were up 57 percent to 1.9 mmcf/d. On an equivalent basis, sales grew 90 percent to 8,696 boe/d.

...However, results for 2007 do not yet fully reflect the productive capacity of the two areas, which continue to be evaluated with exploratory and development wells and await the impact of the company's pressure maintenance waterflood project on the northern and central pools at Puesto Morales. This project is in the final stages of completion and implementation.

Also, during the drilling of proposed water injection wells, oil bearing reservoir was encountered and resulted in certain of these wells being completed as oil wells, thereby ensuring optimum recovery from the identified pools over the life of the field. While this was a most favorable outcome to encounter and should assist in enhanced reserve recognition when the company's reserve reports are updated at year end 2007, new injector wells had to be drilled in down dip locations to ensure no recoverable oil was left in the ground.

Source

Petrolifera's production growth restored - Operations update 9/12/2007

CALGARY, Sep. 12, 2007 (Canada NewsWire via COMTEX News Network) --

Petrolifera Petroleum Limited (PDP - TSX) announces that as a result of its recent and continuing drilling, completion and workover programs at Puesto Morales and Rinconada in the Neuquén Basin, Argentina, the company's daily crude oil production is currently at 8,600 bbl/d with a further volume of approximately 600 bbl/d shut in due to testing or workovers underway at five separate wells on the two blocks. Also, current natural gas sales are approximately 380 boe/d, bringing the company's total production and productive capacity to approximately 9,625 boe/d...

High pressure connections and compression will now be operative around mid-November 2007. Final completion of certain of the company's water treatment facilities and water injection scheme will also be delayed by several weeks for the same reason and are expected to be substantially operative by mid-October 2007...

Elsewhere in Argentina, the company has been pre-awarded the Puesto Guevara Concession by the government of the Province of Rio Negro, Argentina. This block, which encompasses 171,520 acres (670 sq. kilometers), is on trend with and contiguous with the Vaca Mahuida Concession southeast of the Rinconada Block. Petrolifera was the sole bidder on this block at a recent Rio Negro sale of oil and natural gas rights. Upon formal award, Petrolifera as to a 100 percent working interest will be committed to reprocessing existing 3D seismic coverage on the block, to shooting 100 square kilometers of new 3D seismic, and to the drilling of one 2,000 meter well within the first three years of the award date.

Source

BWR Market Depth, Technicals,House Buy+Sells + More

News:BWR Drill Report +50% of Coulon JV Property

Breakwater Resources Ltd. and Virginia Mines Inc. Provide Update on Coulon JV Project

08:01 EST Wednesday, November 14, 2007

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Breakwater Resources Ltd. (TSX:BWR) has fulfilled all its payment obligations totalling CA$180,000 and CA$7.5 million in exploration work and now owns a 50% interest in the Coulon JV property. Breakwater and Virginia are jointly reporting on the new results from Virginia's current exploration program on the Coulon JV property, located 15km north of the Fontanges airport, Quebec Middle North.

Current exploration includes prospecting and geological mapping, diamond drilling, a VTEM heliborne survey as well as borehole InfiniTEM surveys. The 18 new holes announced tested lenses 44 (7 holes), 43 (3 holes) and 08 (1 hole) and the area of the Spirit showing (7 holes).

LENS 44 YIELDS 9.31% Zn, 1.67% Pb, 0.88% Cu and 69.18 g/t Ag / 30.45m

Seven new holes tested lens 44 at vertical depths of 430m to 600m (longitudinal section 44/08). Hole CN-07-92 intercepted to a vertical depth of 460m a thick massive sulphide zone that graded 9.31% Zn, 0.88% Cu, 1.67% Pb and 69.18 g/t Ag over 30.45m, including two intervals that returned 10.64% Zn, 2.14% Cu, 1.46% Pb and 89.64 g/t Ag over 8.05 m (589.1 to 597.15m) and 12.51% Zn, 0.48% Cu, 2.19% Pb and 74.06 g/t Ag over 15.7m (603.85 to 619.55m). Located 35m further north, hole CN-07-105 intersected two main zones of massive sulphides that returned 7.4% Zn, 0.9% Cu, 1.33% Pb and 81.30 g/t Ag over 15.3m (474.45 to 489.75m) and 9.26% Zn, 1.31% Cu, 33.81 g/t Ag over 14.95m (534.15 to 549.1m). These intersections are at vertical depths of 430 and 450m respectively. Some other thinner massive sulphide lenses are also present in hole CN-07-105 (see table of results). The mineralized intersections of holes CN-07-92 and CN-07-105 represent the north extension of large mineralized zones previously announced in holes CN-07-85 and CN-07-85B, thus confirming the presence, at this depth, of a thick, high-grade zone within lens 44.

Furthermore, two of the new holes testing lens 44 confirmed the continuity of the mineralization at vertical depths of over 500m. Hole CN-07-106 intercepted, to a vertical depth of 530m, a massive sulphide zone grading 8.21% Zn, 0.72% Cu and 61.82 g/t Ag over 3.75m. Hole CN-07-103 intersected to a vertical depth of 575m a massive sulphide zone grading 6.39% Zn, 0.60% Cu and 13.47 g/t Ag over 3.50m. This intersection is the deepest one obtained to date in lens 44.

The three other holes testing lens 44 did not return economic intersections. Hole CN-07-95 crosscut at a vertical depth of 460m a semi-massive sulphide zone composed mainly of pyrite and pyrrhotite, which graded 0.36% Zn, 0.73% Cu and 8.5 g/t Ag over 8.6m. This sulphide zone is followed in the hole by a large alteration zone of nearly 100m thick. The presence of a pegmatite intrusion of approximately 40m in thickness in the core of this alteration zone might explain the absence of other mineralized intersections in hole CN-07-95. Finally, holes CN-07-100 and CN-07-109 intercepted alteration zones of 10 to 30m in thickness with disseminated sulphides locally, at vertical depths of 580m and 600m respectively. All these holes will be the object of borehole InfiniTEM surveys this fall.

Lens 44 is north-south oriented and is dipping vertically to steeply to the west. It is now confirmed over a lateral distance of 300m and at a vertical depth of 575m. Lens 44 remains totally open at depth. It is now without any doubt the most important mineralized lens on the Coulon JV project and is currently the focus of additional drilling.

THE CONTINUITY OF LENS 43 ONCE MORE CONFIRMED BY THREE HOLES

Three new holes tested lens 43 and have once again proved the good continuity of this lens with three significant mineralized intersections (longitudinal section 43). Holes CN-07-99 intercepted at a vertical depth of 300m a massive sulphide zone that yielded 8.9% Zn, 1.95% Cu and 31.49 g/t Ag over 2.7m. This intersection extends the mineralization by 80m from holes CN-07-84 and CN-07-98 previously announced. Holes CN-07-104 and CN-07-104B confirmed the continuity of the mineralization at 70m over and under hole CN-07-79 (already published) respectively. Hole CN-07-104 intercepted at a vertical depth of 290m a disseminated to semi-massive sulphide zone that yielded 0.64% Zn, 0.90% Cu and 9.15 g/t Ag over 10.0m , including an interval grading 0.86% Zn, 1.23% Cu and 10.55 g/t Ag over 5.45m. As for hole CN-07-104B, it intersected a semi-massive to massive sulphide zone that yielded 4.06% Zn, 1.36% Cu and 13.93 g/t Ag over 1.75m at a vertical depth of 430m. This intersection is the deepest one obtained to date in lens 43.

Lens 43 is NE-SW oriented and seems to present a variable dip towards the northwest. The mineralization is confirmed over a lateral distance of 340m and at a vertical depth of 430m. It remains open in all directions and additional drilling is planned to pursue the evaluation of this very significant mineralized lens.

LENS 08

Only one hole tested lens 08 during the recent period (longitudinal 44/08). Hole CN-07-108 intercepted an alteration zone of several tens of metres in thickness, including many intervals with disseminated sulphides reaching up to 20% pyrite, 10% pyrrhotite and 1% chalcopyrite locally. This intersection is located at a vertical depth of 275m at the south border of lens 08.

Lens 08 is developed at the same stratigraphic level as lens 44 but is located 300m further north. It is north-south oriented and has a variable, but generally subvertical, dip. Lens 08 is now confirmed over a lateral distance of 250m and to a vertical depth of 410m and remains open at depth. It will be the object of additional drilling.

SPIRIT SHOWING AREA

Three new short holes tested the lateral extensions of the Spirit showing at 50m on both sides of the discovery. Holes CN-07-101A and 101B, on a section 50m south of the showing, and hole CN-07-102, on a section 50m north of the showing, intercepted favourable volcanics but did not intersect mineralization.

However hole CN-07-94A testing a weak Maxmin conductor located 330m southwest of the Spirit showing intercepted a disseminated to semi-massive sulphide zone that returned 4.11% Zn, 2.32% Cu and 62.08 g/t Ag over 6.15 m. Hole CN-07-94B, drilled directly under this intersection, intercepted a thin disseminated sulphide zone that yielded 1.09% Zn, 0.58% Cu and 17.5 g/t Ag over 1m. These two intersections are located at vertical depths of 30 and 40m respectively. Additional drilling will be needed to test the lateral extensions of this new mineralized zone and to evaluate its relation with the mineralization of the Spirit showing, located over 300m to the northwest.

Finally, holes CN-07-96 and CN-07-97, testing other Maxmin conductors located over 500m to the west of the Spirit showing, intercepted barren mineralized zones (pyrite-pyrrhotite-graphite).

The Spirit showing area remains very promising with a new economic-type intersection associated with a Maxmin conductor. Many other airborne EM conductors have not yet been confirmed by ground surveys because of the presence of many small lakes in the area. The area will be covered during the winter of 2008 with a surface InfiniTEM survey and will be the object of additional drilling.

VTEM HELIBORNE SURVEY

A VTEM heliborne geophysical survey has recently commenced on the Coulon JV project. This survey will total more than 6000 linear kilometres over a vast territory of more than 1000km2 covering the possible extensions of the fertile Coulon volcanic belt. This additional property was acquired following the identification of the Spirit showing in the summer of 2007. The survey should be completed by the end of November 2007.

New drill results are reported in the annexed table. All samples have been analyzed at the certified laboratory ALS Chemex in Val-d'Or.

Work is carried out by the personnel of Virginia Mines Inc, under the supervision of Mr. Paul Archer, geological engineer. Mr. Archer is a Qualified Person (as defined by National Instrument 43-101) and has more than 25 years of experience in exploration. Mr. Archer reviewed and approved the content of this press release.

RESULTATS DE LA CAMPAGNE DE FORAGE AUTOMNE 2007/ RESULTS OF THE FALL 2007 DRILL PROGRAM

-----------------------------------------------------
Forage Ligne Longueur
Hole Line Station Azimut Dip Length
-----------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
-----------------------------------------------------
Lentille 44 Lens
-----------------------------------------------------
CN-07-92 14+00N 7+15E N085 -59 687
-----------------------------------------------------
inc.
-----------------------------------------------------
inc.
-----------------------------------------------------
CN-07-95 13+25N 7+20E N087 -62 693
-----------------------------------------------------

-----------------------------------------------------
CN-07-100 14+00N 6+50E N085 -61 798
-----------------------------------------------------

-----------------------------------------------------
CN-07-103 14+75N 7+00E N087 -60 750
-----------------------------------------------------
CN-07-105 14-75N 8+45E N087 -60 594
-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------
CN-07-106 14+90N 7+20E N086 -57 720
-----------------------------------------------------

-----------------------------------------------------
CN-07-109 12+50N 6+65E N086 -62 829
-----------------------------------------------------

---------------------------------------------------------------------------
Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
---------------------------------------------------------------------------
Lentille 44 Lens
---------------------------------------------------------------------------
CN-07-92 589.10 619.55 30.45 28.95 0.88 9.31 1.67 69.18 0.26
---------------------------------------------------------------------------
589.10 597.15 8.05 7.65 2.14 10.64 1.46 89.64 0.33
---------------------------------------------------------------------------
603.85 619.55 15.70 14.95 0.48 12.51 2.19 74.06 0.32
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-95 571.40 580.00 8.60 8.00 0.73 0.36 0.02 8.50 0.17
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-100 PVS/NSV(i)
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-103 716.30 719.80 3.50 3.30 0.60 6.39 0.02 13.47 0.21
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-105 461.15 463.05 1.90 1.60 0.79 2.78 0.33 24.72 0.13
---------------------------------------------------------------------------

---------------------------------------------------------------------------
474.45 489.75 15.30 13.00 0.90 7.40 1.33 81.30 0.18
---------------------------------------------------------------------------
514.25 518.20 3.95 3.35 0.41 3.29 0.35 28.04 0.16
---------------------------------------------------------------------------
522.00 525.70 3.70 3.15 0.33 3.44 0.60 38.40 0.07
---------------------------------------------------------------------------
534.15 549.10 14.95 12.70 1.31 9.26 0.40 33.81 0.34
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-106 650.05 653.80 3.75 3.20 0.72 8.21 1.68 61.82 0.16
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-109 PVS/NSV
---------------------------------------------------------------------------

-----------------------------------------------------
Forage Ligne Longueur
Hole Line Station Azimut Dip Length
-----------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
-----------------------------------------------------
Lentille 43 Lens
-----------------------------------------------------
CN-07-99 6+64N 3+81W N125 -61 474
-----------------------------------------------------

-----------------------------------------------------
CN-07-104 5+60N 4+20W N131 -50 421
-----------------------------------------------------
inc.
-----------------------------------------------------

-----------------------------------------------------
CN-07-104B 5+60N 4+20W N128 -66 544
-----------------------------------------------------

-----------------------------------------------------

---------------------------------------------------------------------------
Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
---------------------------------------------------------------------------
Lentille 43 Lens
---------------------------------------------------------------------------
CN-07-99 372.10 374.80 2.70 2.00 1.95 8.90 0.43 31.49 0.09
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-104 393.60 403.60 10.00 9.75 0.90 0.64 0.22 9.15 0.11
---------------------------------------------------------------------------
398.15 403.60 5.45 5.30 1.23 0.86 0.35 10.55 0.11
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-104B 479.40 481.15 1.75 1.25 1.36 4.06 0.17 13.93 0.17
---------------------------------------------------------------------------

---------------------------------------------------------------------------

-----------------------------------------------------
Forage Ligne Longueur
Hole Line Station Azimut Dip Length
-----------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
-----------------------------------------------------
Lentille 08 Lens
-----------------------------------------------------

-----------------------------------------------------
CN-07-108 17+75N 12+00E N267 -54 370
-----------------------------------------------------

-----------------------------------------------------

---------------------------------------------------------------------------
Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
---------------------------------------------------------------------------
Lentille 08 Lens
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-108 PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------

-----------------------------------------------------
Forage Ligne Longueur
Hole Line Station Azimut Dip Length
-----------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
-----------------------------------------------------
Secteur Spirit Area
-----------------------------------------------------
CN-07-94A 46+00N 56+00W N270 -45 125
-----------------------------------------------------

-----------------------------------------------------
CN-07-94B 46+00N 56+00W N270 -70 84
-----------------------------------------------------

-----------------------------------------------------
CN-07-96 46+50N 63+00W N225 -45 153
-----------------------------------------------------

-----------------------------------------------------
CN-07-97 48+35N 65+65W N225 -45 96
-----------------------------------------------------

-----------------------------------------------------
CN-07-101A 47+83N 58+22W N270 -45 87
-----------------------------------------------------

-----------------------------------------------------
CN-07-101B 47+83N 58+22W N270 -70 160
-----------------------------------------------------

-----------------------------------------------------
CN-07-102 48+83N 58+22W N270 -45 99
-----------------------------------------------------

-----------------------------------------------------

---------------------------------------------------------------------------
Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
---------------------------------------------------------------------------
Secteur Spirit Area
---------------------------------------------------------------------------
CN-07-94A 39.00 45.15 6.15 - 2.32 4.11 0.02 62.08 0.02
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-94B 34.00 35.00 1.00 - 0.58 1.09 0.01 17.50 -
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-96 PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-97 PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-101A PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-101B PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CN-07-102 PVS/NSV
---------------------------------------------------------------------------

---------------------------------------------------------------------------

PVS: pas de valeur significative
NSV: no significant value

FOR FURTHER INFORMATION PLEASE CONTACT:

Breakwater Resources Ltd.
Ann Wilkinson
Vice President, Investor Relations
(416) 363-4798 Ext. 277

Tuesday, November 13, 2007

Warren Verbonac PDP Target=$30.00

BUY: Petrolifera Petroleum Ltd.
PDP-TSX: $14.95
Target: $30.00
Warren Verbonac
(403) 750-0497· wverbonac@octagoncap.com
Activity Update
• According to yesterday’s release, Petrolifera’s production in the current
quarter (Q3/07) of 7,563 boed is down from that of the Company’s last
release, of 8,890 boed (with productive capability at that time of over 9,600
boed).
• Our previous Q4/07 production estimate of 15,000 boed has been reduced to
10,000 boed, cutting estimated cash flow by $0.35 to $1.72 for 2007.
• Having had a series of production misses and setbacks during the last two
quarters, Petrolifera has decided to stop providing operating and financial
guidance, and has termed the Puesto Morales field as “at a very advanced
stage” – presumably, production may have peaked from this field.
• The Puesto Morales and Rinconada concession comprises less than 10% of
the Company’s net acreage in Argentina’s Neuquen Basin, which still
provides substantial ongoing drilling opportunities.
• Due to rig availability issues, 11 more locations are expected to be drilled by
year‐end, 10 locations short of the original target.
• Q3 results are expected November 6, including an update on the status of
the $37.7 million in asset backed commercial paper held by the Company.
• We continue to regard Petrolifera’s exploration inventory as one of the most
prospective of any junior. With the first drilling in Peru expected soon, there
is tremendous potential.

We are thus maintaining our BUY recommendation
and $30.00 target price.

Connacher Oil and Gas Limited of Calgary, Alberta was responsible for the creation and financing of Petrolifera and remains the single largest shareholder (13.3 million shares on a fully-diluted basis) Connacher also provides management services to Petrolifera.

Visit Connacher Oil and Gas Limited:
www.connacheroil.com

GMP Target is 19.00

TORONTO (Dow Jones)--GMP Securities L.P. cut its stock-price target on Petrolifera Petroleum Ltd. (PDP.T) to C$19 from C$23, noting that logistical challenges are leading to delays in conducting its Argentinian operations.

The analyst said Petrolifera gave no update in a news release Monday about current production.

He said Petrolifera expects that a large portion of its field facilities at Puesto Morales will be completed by November, with the remainder to be completed by year-end. In a previous release, it had reported delays in completion of these field facilities.

In 2008, Beddis anticipates production of 16,000 barrels of oil equivalent a day, resulting in cash flow of C$2.53 a share. He had previously anticipated production of 19,000 barrels of oil equivalent a day and cash flow of C$3.25 a share in 2008.

Shares of the Calgary-based oil and gas company are trading up 5 Canadian cents at C$15.00 in Toronto Tuesday.

GMP doesn't have an investment-banking relationship with Petrolifera and Beddis doesn't own shares of the company.

Company Web site: http://www.petrolifera.ca

BWR Houses Anon + GMP Accumulating Today

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Whereas Canaccord is selling after accumulating on the lows Monday.

BWR.wt (warrants)

BWR

PDP is a bargain today 13.46 target $20-30.00

Click To Make This Larger

Public Float Only: 45,835,000

Remember a small float equals a fast climb!

Petrolifera reports restored sales growth and rise in cash flow for third quarter 2007 11/6/2007

CALGARY, Nov. 6, 2007 (Canada NewsWire via COMTEX News Network) --

Petrolifera Petroleum Limited (TSX: PDP) reports its sales growth was restored during the third quarter ("Q3") of 2007. As a consequence, successive period cash flow from operations before changes in working capital ("cash flow")(1) rose 28 percent to $18.6 million and year-to-date 2007 cash flow of $57.7 million was 85 percent higher than a year ago. Higher volumes of both crude oil and natural gas sales were the principal contributing factors. The company continued to expand its overall exploratory holdings in both Argentina and Colombia and commenced its seismic program in Peru.

<<

Highlights are as follows:

- Crude oil sales increased eight percent over the second quarter 2007("Q2"), while equivalent volumes rose nine percent as natural gas sales rose 26 percent.
- Year-over-year crude oil sales rose 91 percent to 8,376 bbl/d while equivalent sales rose 90 percent to 8,696 boe/d.
- Cash flow was $18.6 million or $0.37 per common share in Q3 2007($18.4 million in 2006) while net earnings declined to $4.9 million($0.10 per common share), from $15.7 million ($0.39 per common share), fuelled by the impact of a strong Canadian dollar.
- Year-over-year cash flow increased 85 percent to $57.7 million($1.22 per common share) while earnings decreased two percent to$24.4 million or $0.52 per common share.
- Self-financed capital expenditures thus far in 2007 were $53.4 million, primarily for drilling new wells and constructing facilities and infrastructure in Argentina.
- Working capital was $22.7 million at the end of the reporting period as short-term investments were reclassified to long-term after an impairment provision.
- New concessions were acquired in Argentina and Colombia.
- A new US$60 million credit facility was established, ensuring strong liquidity.

Source

From The Bullboards:
Beddis analysis for PDP seems a little conservative.

They originally predicted 10,500 boe production per day or a cashflow of $1.98/s

After Q3 the report wasn't updated.
With the Big Rig Drilling the production number will go up for PDP in Q4. Might be two or three deeper wells completed before the end of Dec.

The waterflood project will also increase well outputs. This is in the process of happening without further delays. The outpurt increases will raise the Q4 boe.

Should reach their original target of 10,500Boe/day. Or $1.98 per share. cashflow.

Beddis expects 16,000 boe/d in 2008 or $3.25/share cashflow.

Since the schedule as changed in drilling...rigs drilling and waterflood completion. As well as facility upgrades mostly done. The value of PDP has also changed.

My bet is production numbers are in the 8000boe/d right now and increasing...

Therefore Q4 will see 10-12,000 boe/d.

Easy $19.00 stock price right now off the increases that have happended since the Q3 reporting on Sept. 30th.

Great time to buy PDP shares. They are about to go up to the $20+ mark really fast.

Wall Street pointing to rebound

Tuesday, November 13, 2007

Just when you thought it wasn’t safe to go back in the water, along comes a Wal-Mart Stores profit beat, sending stock-index futures higher on hopes consumer spending might be stronger than expected going into the holiday shopping season.

Notwithstanding the downturn in U.S. housing and construction, Home Depot’s quarterly profit decline generally met analysts’ expectations, ahead of a new reading on pending home sales in September set for release 30 minutes after the opening bell.

The August housing report was the weakest on record for the seven-year-old index, as the meltdown in mortgage markets cut off many buyers’ ability to finance purchases.

“The housing downturn continues to deepen, risking spreading to consumer spending,” BMO Capital Markets said in a morning commentary that predicts a 3 per cent decline in pending home sales.

Wall Street also will get a closer look at how the credit squeeze is impacting consumer spending, with two sets of weekly retail sales reports before trading begins.

At 7:30 a.m. EST, Dow Jones industrial futures are up 82 points, as traders figure investors may be reluctant to push the benchmark average further below 13,000. S&P 500 futures are up 10.8 points and Nasdaq 100 futures up 10.75 points.

“I kind of think the market is going to encounter a technical rebound [Tuesday],” Peter Cardillo, chief market economist at Avalon Partners, told Reuters. “We had solid corporate news already.”

Besides the retailing sector, stocks to watch include Apple after China Mobile said it is in talks to sell the iPhone handset in China.
Mauled by a downgrade on Monday that erased 59 per cent of E-Trade Financial’s market value, the online broker rebounded slightly, rising just over 3 per cent in after-hours trading.

Look stupid. Be brave.

Derek DeCloet

Tuesday, November 13, 2007

Stock markets are designed to make smart people feel stupid, to take money from the fearful and hand it to the brave.

The last time the United States went through a major financial crisis, in the early 1990s, property markets on the West Coast were rocked.

Just like today, investors went running from the banks most exposed to worst-hit areas. San Francisco's Wells Fargo & Co., with its huge book of loans in California, was in dire straits. Or so people said. In the span of a few months it plunged 40 per cent; it was described as a "dead duck" and thought to be a possible bankruptcy candidate. Into the maw of pessimism stepped a well-known and very rich investor, who bought millions of shares. But still it kept falling.

Ah, well, sneered a columnist in Barron's, at least the guy "won't have to worry about who spends his fortune much longer; not if he keeps trying to pick a bottom in bank stocks." The investor? Rumpled old man from Nebraska, goes by the name of Buffett. And he did pretty well on his investment in Wells Fargo.

Like every other bank, Wells has been bruised in Wall Street's Black November. It's one of the lucky ones, since half the U.S. financial sector is in a body cast.

When an analyst at a major brokerage house speculates openly about the potential bankruptcy of the firm across the street, as Citigroup's Prashant Bhatia did yesterday with E*Trade Financial Corp., you know we are in the middle of an unusual time - the kind of market in which the brave inevitably look stupid for a while, but end up making a killing.

E*Trade's fall is stunning. In 1999, at the peak of the Internet lunacy, it was (very) briefly worth more than the Bank of Montreal. Now it's worth less than little Canadian Western Bank. Not five months ago, two hedge funds asked - no, demanded - Ed Clark to get out of the way and let TD Ameritrade, the Toronto-Dominion Bank's partly-owned U.S. brokerage, merge with E*Trade. Since then, the latter has lost about $8-billion in market capitalization. Where are the hedge fund geniuses now? Awfully quiet.

But the reasons for E*Trade's implosion - regardless of whether it goes bust - are the same reasons to be bullish on the U.S. financial sector. The company's big problem was management's decision to diversify away from what it was good at (online trading) into what it was demonstrably not good at (lending money).

Last year, its banking subsidiary wrote off about $45-million (U.S.) in bad loans; this year, it will be $338-million, Mr. Bhatia predicts, rising to $400-million in 2008. It's knee deep in toxic debt and management's credibility is shot. If it survives, the memory of its mistakes will linger.

So E*Trade's days as an aggressive lender are over, as it becomes the latest in a parade of financial institutions to pull back - even the big ones. HSBC Holdings PLC, the massive global bank, closed some of its subprime lending operations in the U.S. Lehman Brothers Holdings Inc. did likewise. Bank of America Corp. is chopping jobs in its corporate and investment bank. Citigroup Inc., which is in disarray, may break itself up or close or sell divisions. At the least, it's will have to become far more cautious as it rebuilds its wafer-thin capital base.

It's the same dynamic Mr. Buffett took advantage of in the early nineties with his Wells Fargo play. Then, as now, the weakest competitors died or went away, which, in any business, including banking, tends to mean higher costs to the customer and higher margins to the survivor.

The yield curve is also changing. U.S. banks typically make money by borrowing short term and lending longer term. The U.S. Federal Reserve is responding to the current crisis by cutting short-term rates (that is, banks' funding costs will fall). But the rate banks can charge for longer-term loans is higher, because credit spreads are wider.

That can only mean good things for bank profits. So why has the world gone so negative on Wall Street? Why do most of the really excellent banks in the world's largest economy sell for 10 or 11 times earnings, and Citigroup and B of A have yields around 6 per cent?

There are two reasons. The first is that the mortgage mess is not over. But the second is what Bill Miller, the famed mutual fund manager at Legg Mason, might describe as predictable, but illogical, market psychology.

Studies repeatedly show investors place too much weight on information that's (a) recent, and (b) dramatic. The multibillion mortgage writedowns at U.S. banks are both.

Mr. Miller, who beat the Standard & Poor's 500 for an incredible 15 consecutive years, has been getting enthusiastic lately about U.S. financial stocks. At the moment, he looks foolish and stupid. Two years from now, he'll be thought of as brave and wise.

Monday, November 12, 2007

Where Is The Bottom?

The BWR Bottom

BWR Ouch- House Buy + Sells Updated Today

Dundee was sucking up stock like it was on sale...come to think about it it was :-)

BWR+BWR.wt Low volume , USA is slow due to Veterans Day,
We do need the USA for BWR.

As soon as the 4th Q Earnings include the sales that were not recorded in the 3rd Q, I believe BWR will run back up thru 3.00.
My revisions due to the change in the financials are as follows
Dec 31 2007 2.75
Jan 31 2007 3.30
Feb 28 2008 3.75
As I have mentioned in a previous post (review archive)
I'm holding very little BWR.wt at the moment and NO shares
But I'm still down $5000.00 on those holdings- So I'm holding on!

Top U.S. banks to help markets

Sunday, November 11, 2007

NEW YORK — The top three U.S. banks have agreed on the structure of a backup fund of at least $75 billion to stabilize credit markets, The New York Times reported Sunday.

Citing a person involved in the discussions, who insisted on anonymity, the Times said that Bank of America, Citigroup Inc. and JPMorgan Chase & Co. officials reached agreement late Friday, approving a more simplified structure than had been proposed during the course of some two months of negotiations.

“We cleared all the big hurdles,” the newspaper quoted its source as saying. “We agreed to a much simpler structure that we think can get done, rather than optimize it for everyone,” the person added.

Discussions began in early autumn when the U.S. Treasury Department convened a meeting.

Previous versions of a backup fund had been widely considered infeasible, spurring doubts about the prospect for a final plan, the Times said.

The proposed fund could begin operating by the end of the year, the newspaper reported, and the banks could start asking some 60 financial institutions to contribute to the fund in the next five to 10 days.

Treasury Department officials declined to comment, the newspaper said.

The fund is meant to avoid a severe credit market disruption, according to its organizers, by either providing time for asset prices to recover or, more likely, at least discouraging structured investment vehicles from unloading their holdings en masse, the Times said.

The fund also needs the major credit rating agencies' blessings.

Saturday, November 10, 2007

BWR Technically Speaking Bullish Hamari Candlestick Pattern

Markets Take A Dump Friday November 9 2007

See Buy + Sells BWR At The Bottom Of This Post

Click Pics To Make Larger

Friday, November 9, 2007

Where In The World Is Stochastics1?

In other words what stocks am I playing and watching?

I'm in up to my yin/yang in PDP 20,000 and I have 7600 BWR.wt warrants and about 65% cash in case of a major correction when I will go shopping big time.

I'm up BIGTIME on both overall but in this latest trade(about 1 week old) I'm down, about $19,000 after Fridays trading OUCH! but I'm still holding both.

Ouch!

Which means I stay with this position until the market moves them into a gain which should be less then 2 weeks. I have full confidence that as the market moves higher so will PDP and BWR.

By the way I think this Banking crisis is going to cause a very serious correction before year end, but timing for me is to get out of PDP and BWR before that happens.

(BTW I have a watchlist of 20 other stocks that include CDH:TSX, POE:TSX, CNS:TSXv, YRI:TSX, SLG:TSXv, SNG:TSX, GMI:TSX, KFS:TSX, PAA-TSX

Bernanke: Slower growth ahead

Index View Worth Checking Out

The Broad Market Indexes Move BWR + PDP Up And Down Like A Roller Coaster.

Roller-coaster for stocks

Thursday, November 08, 2007

A grim assessment on the U.S. economy by Federal Reserve Chairman Ben Bernanke and a disappointing outlook from tech icon Cisco Systems combined to send stock markets on a roller coaster ride for a second day before the session ended mixed.

Toronto’s S&P/TSX composite index started positive, then swooped to a 236-point slide before closing 10.41 points higher to 14,128.59, on top of Wednesday’s 252-point slide.

On Wall Street, the Dow Jones industrial average underwent similar swings, racking up a 220-point deficit before closing down 33.73 points to 13,266.29 on top of Wednesday’s 361-point loss.

Mr. Bernanke told the joint economic committee of Congress that a host of economic problems, including the severe housing slump, will cause business growth to slow noticeably in coming months.

The Canadian dollar also endured another volatile session a day after the latest spasm of weakness in the greenback pushed the loonie over $1.10 cents (U.S.) before closing at $1.0775. The currency closed down another 0.91 of a cent to $1.0684 on Thursday after rising earlier in the session.

The TSX Venture Exchange was down 40.09 points to 3,068.86.
The tech-intensive Nasdaq composite was down 52.76 points or almost two per cent to 2,696.

The tech sector was a major source of weakness in New York after a disappointing outlook from Cisco Systems, which said its fourth quarter sales will narrowly miss analyst estimates.
The S&P 500 moved 0.85 point lower to 1,474.77. Canadian Press

© Copyright The Globe and Mail

Click Pics To Enlarge

Thursday, November 8, 2007

Dundee + GMP + Paradigm In Love With BWR Today

Just For Mike Till Friday BAY-X

52-Week High $2.47

The Maybach Financial Group www.maybachfinancial.com will be researching the above-mentioned companies to determine their chances of a turnaround opportunity for investors.

Uranium market is hot (excuse the pun) But this is a pure bluesky speculating play in Uranium.
A Huge short position tells you that the stock which is 50% of its high value could fall a long way from here.

No analyst coverage, no institutional buying.
I would look for a producer but if I were to bet on pure spec I would choose one of these
to bet on. i.e. rsc-t or gmi-t or cns-x

Bayswater proposal for property payment

2007-11-02 17:11 ET - Property Agreement

Further to the TSX Venture Exchange bulletin dated March 29, 2006, with respect to the option agreement dated Nov. 17, 2005, between Bayswater Uranium Corp. and Longview Strategies Inc. pursuant to which Bayswater was granted an option to acquire a 100-per-cent interest in certain claims located in central Labrador, the TSX-V has accepted for filing Bayswater's proposal to pay half the cash consideration due and payable Sept. 29, 2007, by way of 238,095 common shares at a deemed price of 84 cents per share.

In addition, on Oct. 23, 2006, the company issued 38,827 common shares at a deemed price of $1.159 per share and on March 28, 2007, the company issued 54,645 common shares at a $1.83 per share in settlement of half of the cash consideration due and payable on Sept. 29, 2006, and March 29, 2007, respectively.

The calculation of the deemed value per share was based on the weighted average closing price of the company's shares for the 30 days prior to the date of the payment obligation.

Drilling Leads to Major Uranium Discovery on Bayswater's Anna Lake Prospect, Central Mineral Belt Uranium Project, Labrador
10/29/2007

VANCOUVER, BC, Oct 29, 2007 (MARKET WIRE via COMTEX News Network) --

Highlights

* Best drill intersection to date returns 40 meters grading 0.07% U3O8 and
0.022% Mo (molybdenum)
* Hole to hole correlation establishes main uranium mineralized zone over a
340 meter strike length, 230 meter vertical depth and approximate true
widths of up to 25 meters
* Deposit open in all directions
* Deposit is entirely blind-overburden covered with a veneer of glacial
drift and boulders

Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to report a near surface uranium discovery with significant molybdenum credits from drilling on its Anna Lake Prospect located on the Company's 100% owned property in the Central Mineral Belt, Labrador. Drill results include an intersection in AL07-01 grading 0.07% U3O8 over 40 metres including 0.12% U3O8 over 5 metres and 0.15% U3O8 over 6.0 metres. Also, an approximate true width intersection from AL07-25 grades 0.05% U3O8 over 25.0 metres including 0.10% U3O8 over 2.0 meters and 0.11% U3O8 over 6.0 meters.

Mr. George Leary, President of Bayswater states, "The Company is very encouraged by the drill results from its Anna Lake property to date. This discovery is an excellent start for our first drill program in Labrador and on our Canadian holdings."

Source

This stock has a history of dropping below a buck before retracing higher. Would place a bid at support level around 87 cents and then ride it up. Remember it really doesn't matter if the futures contract for uranium is 110..if the overall market is selling you can bet the uranium stocks will go down with it..just look at today.
Source

Bayswater Uranium Corporation is a rapidly-growing international uranium exploration and development company. As the only uranium company to have major landholdings in each of Canada's most important producing and exploration regions -- the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin -- Bayswater is a leader in uranium exploration in Canada, the world's largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior(TM) Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. Bayswater is listed on the TSX Venture Exchange under the symbol "BAY." The Company's website is www.bayswateruranium.com.

BWR being Accumulated By Dundee + Anonymous

PDP Whacked Again Today See Buy+ Sells

On Very Low Volume

Wednesday, November 7, 2007

A Funny Story You Need To See Today

A seagull in Scotland has developed the habit of stealing chips from a neighborhood shop.

The seagull waits until the shopkeeper isn't looking, and then walks into the store and grabs a snack-size bag of cheese Doritos.

Once outside, the bag gets ripped open and shared by other birds.

The seagull's shoplifting started early this month when he first swooped into the store in Aberdeen, Scotland, and helped himself to a bag of chips. Since then, he's become a regular. He always takes the same type of chips.

Customers have begun paying for the seagull's stolen bags of chips because they think it's so funny.

Blood In The Streets Again Today

Click To Make Larger

Punishing Day for PDP

Pro's Are Loading Up On PDP While Retail Run For The Hills

I was buying this morning.

BWR Houses Today

The Shorts Are Attacking The BWR Bullboards
This Is Where You Can Find Quality Shareholder Support

The New Stockhouse

I spent a fair amout of time this morning exploring the new site. And it is terrible.
It has added a variety of security features that states this:

Click pics to make larger

So far it appears to me that the site does not allow html scripting necessary to post pics and charts from outside sites like the Buy+Sells and the technicals etc.

But I have determined that it does allow a copy paste feature similar to Gmail, whereby you must have the pic on the web somewhere and then highlight and copy the pic into your post.

Furthermore it does not allow you to see a page that looks like this whereby you can quickly move to the bullboard of your choice with 1 click. :

And once you are into the bullboard it does NOT allow you to see in a quick view the previous posts as seen below:

So I will continue to attempt to post as I always have BUT it would appear to me that my posts will be here on the blog, since I have NO restrictions.

I will leave bread crumbs on the new stockhouse that will lead you back to this blog, but I suggest you book mark this blog to get you here in 1 click.

The image “http://www1.istockphoto.com/file_thumbview_approve/3126525/2/istockphoto_3126525_messy_bread_crumbs.jpg” cannot be displayed, because it contains errors.

I will read the SH bullboard and will respond to news and views from the board back here on the blog.

I forecast the bullboards will chug along with the marketing and techies in control of a crap stockboard experience. Sad to see the old stockhouse fall victim to the new facebook engine.

I believe it will have to change again in the next 1 year, as advertisers start pulling out.

What was once a successful website will be slow , hard to read, and filled with more ads.
So stay tuned to this blog.

Tuesday, November 6, 2007

PDP News Release 3rd Q Report

Petrolifera reports restored sales growth and rise in cash flow for third quarter 2007

16:34 EST Tuesday, November 06, 2007

CALGARY, Nov. 6 /CNW/ - Petrolifera Petroleum Limited (TSX: PDP) reports its sales growth was restored during the third quarter ("Q3") of 2007. As a consequence, successive period cash flow from operations before changes in working capital ("cash flow")(1) rose 28 percent to $18.6 million and year-to-date 2007 cash flow of $57.7 million was 85 percent higher than a year ago. Higher volumes of both crude oil and natural gas sales were the principal contributing factors. The company continued to expand its overall exploratory holdings in both Argentina and Colombia and commenced its seismic program in Peru.

    <<    Highlights are as follows:

  -   Crude oil sales increased eight percent over the second quarter 2007
       ("Q2"), while equivalent volumes rose nine percent as natural gas
       sales rose 26 percent.
   -   Year-over-year crude oil sales rose 91 percent to 8,376 bbl/d while
       equivalent sales rose 90 percent to 8,696 boe/d.
   -   Cash flow was $18.6 million or $0.37 per common share in Q3 2007
       ($18.4 million in 2006) while net earnings declined to $4.9 million
       ($0.10 per common share), from $15.7 million ($0.39 per common
       share), fuelled by the impact of a strong Canadian dollar.
   -   Year-over-year cash flow increased 85 percent to $57.7 million
       ($1.22 per common share) while earnings decreased two percent to
       $24.4 million or $0.52 per common share.
   -   Self-financed capital expenditures thus far in 2007 were
       $53.4 million, primarily for drilling new wells and constructing
       facilities and infrastructure in Argentina.
   -   Working capital was $22.7 million at the end of the reporting period
       as short-term investments were reclassified to long-term after an
       impairment provision.
   -   New concessions were acquired in Argentina and Colombia.
   -   A new US$60 million credit facility was established, ensuring strong
       liquidity.


  Summary Results
  -------------------------------------------------------------------------
                             Three months ended          Nine months ended
                                   September 30               September 30
  -------------------------------------------------------------------------
                         2007     2006 % Change     2007     2006 % Change
  -------------------------------------------------------------------------
  FINANCIAL ($000
   except per share
   amounts)
  Total revenue        31,730   33,157       (4) 106,956   60,430       77
  Cash flow from
   operations before
   working capital
   changes(1)          18,619   18,384        1   57,738   31,289       85
    Per share,
     basic(1)            0.37     0.46      (20)    1.22     0.82       49
    Per share,
     diluted(1)          0.36     0.38       (5)    1.13     0.69       64
  Net earnings (loss)
   for the period       4,919   15,683      (69)  24,438   24,911       (2)
    Per share, basic     0.10     0.39      (74)    0.52     0.65      (20)
    Per share, diluted   0.10     0.32      (69)    0.48     0.55      (13)
  Capital
   expenditures        26,061    9,738      168   53,417   14,368      272
  Cash on hand                                    11,368   36,206      (69)
  Working capital                                 22,742   41,361      (45)
  Indebtedness                                         -        -
  Shareholders' equity                           121,727   61,440       98
  Total assets                                   144,016   81,226       77

  OPERATING
  Daily sales volumes
    Crude oil - bbl/d   7,195    7,202        0    8,376    4,374       91
    Natural gas
     - mcf/d            2,169    1,259       72    1,919    1,223       57
    Barrels of oil
     equivalent
     - boe/d(2)         7,557    7,412        2    8,696    4,578       90
  Average selling
   prices
  Oil - $/bbl           46.99    49.49       (5)   45.82    49.78       (8)
  Natural gas - $/mcf    1.41     1.44       (2)    1.45     1.31       11
  Barrels of oil
   equivalent
   - $/boe(2)           45.15    48.33       (7)   44.45    47.91       (7)

  Common shares
   outstanding (000s)
  Weighted average
    Basic              50,107   40,442       24   47,285   37,975       25
    Diluted            51,800   48,594        7   51,309   45,531       13
  End of period
    Issued                                        50,119   42,817       17
    Fully diluted                                 51,803   52,671       (2)
  -------------------------------------------------------------------------

  (1) Cash flow from operations before working capital changes ("cash
      flow") and cash flow per share do not have standardized meanings
      prescribed by Canadian generally accepted accounting principles
      ("GAAP") and therefore may not be comparable to similar measures used
      by other companies. Cash flow includes all cash flow from operating
      activities and is calculated before changes in non-cash working
      capital. The most comparable measure calculated in accordance with
      GAAP would be net earnings. Cash flow is reconciled with net earnings
      on the Consolidated Statements of Cash Flows and in the accompanying
      Management's Discussion & Analysis. Management uses these non-GAAP
      measurements for its own performance measures and to provide its
      shareholders and investors with a measurement of the company's
      efficiency and its ability to fund a portio n of its future growth
      expenditures.
  (2) All references to barrels of oil equivalent (boe) are calculated on
      the basis of 6 mcf : 1bbl. Boes may be misleading, particularly if
      used in isolation. This conversion is based on an energy equivalency
      conversion method primarily applicable at the burner tip and does not
      represent a value equivalency at the wellhead.
  >>

LETTER TO SHAREHOLDERS

Your company experienced the restoration of sales growth in Argentina during the third quarter of 2007, as work continued on completion of infrastructure and facilities. This should impact on production, reserves and recovery factors as they are commissioned and activated. Included in work in progress, or completed, are the company's waterflood program for pressure maintenance, its water and crude oil treatment facilities and a new high pressure natural gas pipeline to transport anticipated growth in volumes to available industrial markets north of its Puesto Morales operations.

During the reporting period, the company was able to arrange and secure additional drilling and service rigs to advance its appraisal of the Puesto Morales and Rinconada Blocks in Neuquén Province, Argentina. A total of 20 wells were drilled and completed or were drilling at the end of the quarter and an additional drilling rig with greater depth capacity is now on location and drilling. This will enable Petrolifera to evaluate some higher potential projects which have been deferred until the rig's arrival in the region. This rig will enable the company to drill deviated and deeper wells on prospects located near the water reservoir which bisects Rinconada and is proximate to the Puesto Morales area. In large measure, this is required to move the surface locations away from areas which might be flooded during high water or rainy periods in the region.

We continue to be pleased with the overall results of our drilling program and believe the full impact of our successful drilling will become more apparent once the waterflood or pressure maintenance program is underway. We had been attempting to drill injector wells for the northern and central lobe at Puesto Morales yet continued to encounter considerable oil pay in certain locations. As a result, we completed these wells as producers to recover related reserves. This, then, required new injectors to be drilled and the completed oil wells exhibited lower productivity than is anticipated once the waterflood is operational. Nevertheless, new drilling enabled Petrolifera to offset continuing primary declines and grow our production and sales until our facilities are completed, which will help sustain this improvement.

At Rinconada, we have now drilled a total of five wells and have confirmed a thick hydrocarbon column in the order of 150 feet, without yet having encountered the regional oil/water contact in the Sierras Blancas Formation. Rinconada wells are shallower than at Puesto Morales, exhibit lower comparable permeability and productivity, but still provide attractive economic returns. It appears the main prospect at Rinconada extends over a broad area, including onto the Vaca Mahuida Block and possibly onto the recently confirmed but still informally-awarded Puesto Guevara Block in Rio Negro Province, Argentina. This play could provide us a long-term project with continuous drilling, leading to the prospect of associated reserve and production enhancement over several years. To assist in spreading risk in the area, Petrolifera farmed out one half of its work obligations on the Vaca Mahuida Block to a third party in exchange for a 25 percent interest therein. This is viewed as an attractive way to leverage shareholder's participation at lower cost.

We continue to await final negotiations to secure our 50 percent interest in the Salinas Grande I concession in La Pampa Province, Argentina. As our prospective partners have been unwilling to complete the agreed-upon transaction to bring Petrolifera in as a 50 percent partner, we have served notice of our intention to proceed with arbitration to secure our interest in this large exploratory concession. This is an unfortunate development brought about by the inaction of our joint venture partners, to the detriment of all parties, including the government of La Pampa, Argentina.

In Colombia, Petrolifera was awarded the Sierra Nevada II Technical Evaluation Agreement over a large land spread offsetting our Sierra Nevada I License, on which we plan to drill at least one well during 2008. Petrolifera now holds a 100 percent interest in over one million acres of exploratory rights in Colombia, which has emerged as one of the most competitive and attractive regions of South America.

In Peru, we received approval of our Environmental Impact Assessment ("EIA") for the Ucayali Block 107 situated northwest of the giant Camisea natural gas and condensate field. Accordingly, we are proceeding with our 2D seismic program over a number of large structures as identified by our geological work and extensive and densely-gridded aeromagnetic and gravity survey of the three million acre license area. We anticipate completing our seismic acquisition and processing by year end 2007 and Petrolifera is actively investigating suitable equipment alternatives to be in a position to commence a multi-well drilling program on the block during the second half of 2008. We remain very enthusiastic about Block 107 and its potential for natural gas, associated liquids and crude oil accumulations of considerable size.

We are completing our EIA for Maranon Block 106 and have decided to expand our 2D program over a number of attractive prospects and leads on this two million acre block. Again, we will require approval of our EIA by the regulators before proceeding with this program, which will likely be undertaken after the seismic program on Block 107 is completed. Accordingly, drilling on Block 106 will likely occur later in 2008 or in 2009.

Petrolifera now holds interests in over seven million acres of lands in three countries in South America. As its production and sales expand later this year and into 2008, with continuous drilling and the impact of new facilities, the company is well positioned to aggressively evaluate its holdings due to its strong financial condition and liquidity. It appears we will be able to self-finance our programs this year and will endeavor to do so next year as well. Our total outlays for 2007 will be lower than originally anticipated, in part due to the late arrival of newly-constructed rigs. Nevertheless, we still have an extensive inventory of prospects, plays and locations to drill for several years and remain optimistic about our growth prospects.

As announced during the quarter, Petrolifera has been impacted by the recent problems in the Canadian asset backed commercial paper ("ABCP") market. We had invested funds (largely our IPO proceeds from 2005 and our warrant exercise proceeds from this year) on the advice of our Canadian banker and through its money market facilities. We made investments in what was rated by a Canadian bond-rating agency as R-1 High commercial paper. The key message of this rating was the implied assurance of principal recovery, with limited or virtually minimal likelihood of default, as liquidity for the issuers was represented to be supported by access to lender backstop arrangements to assure the issuers of continuing liquidity even with a mismatch of the maturities of their assets and liabilities. We were, then, investing prudently to earn a respectable return but with a primary emphasis on certainty of capital, until we needed the funds for our programs. Unfortunately, virtually the entire $35 billion Canadian ABCP market has fallen into a state of illiquidity or default since August 2007. At that time, Petrolifera had approximately $37.7 million of its cash invested in ABCP.

We are awaiting resolution of this situation. Initial efforts are focused on clearly identifying the assets in the various conduit trusts which issued the commercial paper. There will then be a determination of the "fair market value" of the underlying assets held by the conduit trusts who issued the ABCP. The next step would apparently be to monetize or otherwise securitize the assets and return all or a portion of the invested funds as cash or securities. We are also examining all of the legal options which could be required or exercised to ensure we recover our funds in as timely a manner as possible, without impairment if possible. At this writing, there can be no assurance we will be successful in our efforts. We have been verbally assured by our banker that we will be made "whole" once the valuation process is completed, but again there can be no assurance this outcome will be obtained.

In the meantime, we have adequate cash flow and other cash balances to carry on with our capital programs without delay. Unrelated to the ABCP developments, we also completed the establishment of an initial US$100 million revolving reserve-backed credit facility with Standard Bank during the period, which provides the company with an initial access to $US60 million of available funds to supplement our internal liquidity. Accordingly, while we continue to pursue full recovery of our ABCP funds, we can proceed in an uninhibited manner with our activity due to the preplanning in establishing this credit facility.

As previously mentioned, our capital expenditures for the nine months ended September 20, 2007 were only $53.4 million. We had originally anticipated an outlay of $76.0 million by this time in our previously announced plans. As a consequence, we now expect our full year 2007 capital expenditures will reach $106.5 million, compared to our previous estimate of $145 million. Some of these expenditures will now occur in 2008.

Our Board of Directors recently approved a $140 million capital budget for 2008. We have provided for total outlays by country of $76 million for Argentina, $56 million in Peru and $8 million in Colombia. We anticipate drilling 69 wells in Argentina on our Puesto Morales/Rinconada, Vaca Mahuida, Puesto Guevara and Gobernador Ayala I blocks. One well is anticipated on Block 107 in Peru and we anticipate at least one well in Colombia on our Sierra Nevada License. The capital program includes approximately $36 million to be invested in new seismic in all three countries.

Our company and its shareholders will be exposed to a broad range of opportunities with our planned 2008 capital program, ranging from infill deliverability and exploratory wells in Argentina to very high potential exploratory wells in Peru and Colombia. We believe this cross section of opportunities balances risk and reward and affords our shareholders the opportunity to participate in a growing production profile with the potential for high returns.

The company's year end results are scheduled to be reported on March 14, 2008. In the interim we will provide timely updates on well results and other events of consequence as they evolve.

On October 19, 2007 the Company relocated its head office to Suite 900, 332 - 6 Avenue SW, Calgary AB, T2P 0B2. There is no change to the company's phone and fax numbers.

MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")

The following is dated as of November 6, 2007 and should be read in conjunction with the unaudited consolidated financial statements of Petrolifera Petroleum Limited ("Petrolifera" or the "company") for the three and nine months ended September 30, 2007 as contained in this interim report and the MD&A and audited financial statements for the years ended December 31, 2006 and 2005 as contained in the company's 2006 Annual Report. Additional information relating to Petrolifera, including its Annual Information Form for the year ended December 31, 2006 is on SEDAR at www.sedar.com. The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP") and are presented in Canadian dollars. This MD&A provides management's view of the financial condition of the company and the results of its operations for the reporting periods indicated.

Information in this report contains forward-looking information based on current expectations, estimates and projections of future production, capital expenditures, cash flow, working capital, available sources of financing, the anticipated impact to the company of the market disruption on short term asset backed commercial paper ("ABCP") and third party initiatives to support and resolve ABCP issues. It should be noted forward-looking information involves a number of risks and uncertainties and actual results may vary materially from those anticipated by the company. These risks and uncertainties include, but are not limited to, political and economic conditions in the countries in which the company operates, changes in market conditions, law or governing policy, operating conditions and costs, operating performance, demand for crude oil and natural gas, foreign currency exchange rate fluctuations, currency controls, commercial negotiations, technical and economic factors and access to services, equipment and facilities. In addition, there can be no assurance that the proposals relating to ABCP will be implemented or restore liquidity to the ABCP market to facilitate repayment. The timing of repayment and amount available to satisfy outstanding obligations to the company is uncertain. Readers should review Petrolifera's Annual Information Form for the year ended December 31, 2006 for a description of the risk factors affecting Petrolifera. Throughout the MD&A, per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of crude oil (6:1). The conversion is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, particularly if used in isolation.

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Petroleum and natural gas revenues for the nine months ended September 30, 2007 were $105.5 million (nine months ended September 30, 2006 - $60.0 million) on sales of 8,696 boe/d (2006 - 4,578 boe/day), a year-over-year increase of 76 percent. Petroleum and natural gas revenues for the third quarter of 2007 were $31.4 million on sales of 7,557 boe/d, a decrease of five percent compared to the third quarter of 2006 revenues of $33.0 million (7,412 boe/d). The substantial increases in revenue resulted from higher oil and natural gas production and resultant sales volumes arising from the company's successful drilling program. All sales were from the company's Puesto Morales/Rinconada block in Argentina. Petroleum and natural gas revenues in the third quarter 2007 were up 14 percent from the second quarter of 2007, due to the continued successful results from the company's ongoing drilling campaign. Lower oil prices were prevalent for both reporting periods in 2007, compared to 2006 levels, but were up modestly on a successive basis.

Crude oil sales volumes increased substantially from the first nine months of 2006. New discoveries resulted in oil sales volumes rising to an average of 8,376 bbl/d for the first nine months of the year compared to 4,374 bbl/d for the same period in 2006. For the nine months ended September 30, 2007 and September 30, 2006 sales of crude oil represented 96 percent of the company's sales volumes. The company's realized crude oil price was down eight percent to average $45.82 per barrel for the nine months ended September 30, 2007 (2006 - $49.78 per barrel). Third quarter average realized crude oil prices were also down five percent compared to the third quarter of 2006. Natural gas prices increased 11 percent to average $1.45 per mcf for the first nine months of 2007, reflecting some relaxation of regulated Argentinean natural gas prices, which are still substantially below prices prevailing in North American markets. Third quarter natural gas prices were essentially flat at a decrease of two percent compared the third quarter of 2006.

Argentinean crude oil selling prices reflect world prices for the respective quality of oil, adjusted for the impact of Argentinean export taxes on domestic sales prices. All of Petrolifera's production is sold in domestic markets. Natural gas prices have been improving and are expected to continue improving due to market conditions and new policy initiatives aimed at market deregulation for industrial sales. The effect of this improved pricing has been somewhat offset by the strengthening of the Canadian dollar relative to the Argentine peso, which reduces the reported realization expressed in Canadian dollar terms.

Interest earned on short-term investments and other income was $1.4 million in the nine months ended September 30, 2007 (2006 - $0.6 million) and $0.3 million for the three months ended September 30, 2007 (2006 - $0.2 million).

ROYALTIES

Royalties represent charges against production or revenue by governments and landowners. Included in royalties are revenue taxes levied by provincial jurisdictions. Royalties in the first nine months of 2007 were $13.8 million ($5.80 per boe) or 13 percent of oil and natural gas revenue, compared to $8.4 million ($6.72 per boe) or 14 percent in the first nine months of 2006. Royalties for the third quarter of 2007 were $4.0 million ($5.77 per boe) or 13 percent of oil and natural gas revenue compared to $4.6 million ($6.73 per boe) or 14 percent in the third quarter of 2006. Lower 2007 unit costs for royalties essentially reflects lower crude oil prices than in 2006.

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Petrolifera's corporate netbacks per boe were down eight percent over those recorded in the first nine months of 2006 and were down ten percent for the third quarter of 2007 compared to the third quarter of 2006. This primarily reflects a decrease in the selling price of crude oil and higher operating expenses, offset by lower royalties and higher interest income. Petrolifera's calculated unit netback for the first nine months of 2007 at $33.79 per boe was a healthy 76 percent of selling price in 2007 and was 73 percent for the third quarter of 2007 at $32.91 per boe. Total netbacks in 2007 were higher due to significant sales volume growth.

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Operating costs in the year to date in 2007 increased on a per unit basis from 2006 reflecting increased staffing levels needed to operate the larger field operations compared to the prior year. Petrolifera anticipates some operating cost efficiencies when its new crude oil processing facilities are fully functional and its crude oil pipeline is increasingly utilized. Also, with the passage of time, more of the company's Argentinean wells require artificial lift with attendant higher associated costs.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative ("G&A") expenses were $4.7 million in the first nine months of 2007 compared to $2.9 million for the first nine months of 2006. G&A was $1.5 million in the third quarter of 2007 compared to $0.8 million for the third quarter of 2006. These costs primarily consist of salaries, insurance, the cost of independent reserve reports, travel and other administrative expenses incurred in Canada, Argentina, Peru and Colombia. The increase from 2006 is primarily attributable to increased staffing related to expanded activity levels. On a per boe basis, G&A was reduced by 14% to $1.99 per boe of sales for the first nine months of 2007 compared to $2.31 per boe in 2006. G&A of $1.8 million was capitalized in the first nine months of 2007 (2006 - $0.2 million).

Non-cash stock-based compensation (a non-cash charge) costs of $5.4 million were recorded in the first nine months of 2007 (2006 - $2.8 million), reflecting the company's increased share price and its consequent effect on the determination of the fair value of all stock options granted and vested in the periods. The company grants stock options on an annual basis to existing employees and to new hires when employed.

FOREIGN EXCHANGE

The impact of fluctuations in the Argentinean peso and the US dollar relative to the Canadian dollar, arising from settling foreign-denominated transactions and from translating foreign denominated financial statements and operating results of its integrated foreign operations, resulted in a foreign exchange charge of $6.3 million in the first nine months of 2007 (2006 - $0.5 million charge) and a charge of $2.3 million for the third quarter of 2007 (third quarter 2006 - $0.1 million charge). The company's main exposure to foreign currency risk relates to the pricing of crude oil sales, costs and capital expenditures which are denominated in US dollars and Argentinean pesos. This is a non-cash charge.

DEPLETION, DEPRECIATION AND ACCRETION ("DD&A")

DD&A is a non-cash charge and calculated using the unit-of-production method based on total estimated proved reserves. DD&A in the first nine months of 2007 was $12.4 million (2006 - $3.6 million) or $5.23 per boe (2006 - $2.86 per boe). DD&A was $3.6 million or $5.16 per boe for the third quarter of 2007 (third quarter 2006 - $1.9 million or $2.74 per boe). Accretion expense for the first nine months of 2007 which is included in DD&A expense was $0.1 million (2006 - $0.02 million) to accrete the company's estimated asset retirement obligation. These charges will continue at appropriate levels in the future to accrete the currently booked discounted liability of $2.7 million to the estimated total undiscounted liability of $7.5 million over the estimated remaining economic life of the company's oil and gas properties. Capital costs of $10.1 million related to unevaluated properties in Argentina and for major development projects and other assets in the pre-production stage, principally related to Peruvian assets, have been excluded from depletable costs (2006 - $1.7 million). The increase in both the three and nine month charges in 2007 is mainly due to the increased cost of additions and infrastructure related to the Argentina production.

CEILING TEST

Oil and gas companies are required to compare the recoverable value of their oil and gas assets to their recorded carrying value at the end of each reporting period. Excess carrying values over fair value are to be written off against earnings. No write-down was required in the first nine months of 2007 or for 2006 as the company has a significant surplus.

TAXES

The current income tax provision of $16.4 million for the first nine months of 2007 (2006 - $11.8 million) primarily relates to income taxes in Argentina. Additionally, a future income tax provision (another non-cash charge) of $6.4 million for the nine month period (2006 - recovery of $0.5 million) was recorded to recognize changes in tax pool balances. Taxes other than income taxes of $1.3 million (2006 - nil) represent taxes charged on all banking transactions in Argentina for the nine month periods.

The current income tax provision for the third quarter of 2007 was $2.4 million (2006 - $5.8 million) and future income tax provision was $3.8 million (2006 - nil) for a total income tax provision in the third quarter of $6.2 million (third quarter of 2006 - $5.8 million). Taxes other than income taxes were $400,000 (2006 - nil) for the third quarter of 2007.

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Cash flow in the first nine months of 2007 was $57.7 million (2006 - $31.3 million) or $1.22 per weighted average basic share and $1.13 per weighted average diluted share, (2006 - $0.82 per weighted average basic share and $0.69 per weighted average diluted share). Cash flow in the third quarter was $18.6 million (2006 - $18.4 million) which equates to $0.37 per weighted average basic share and $0.36 per weighted average fully diluted share (2006 - $0.46 per weighted average basic share and $0.38 per weighted average fully diluted share). There were more shares outstanding in 2007 than in 2006.

Capital expenditures in the nine months of 2007 totaled $53.4 million (2006 - $14.4 million). Of the total, $47.4 million was invested in Argentina, mainly for costs to drill wells, constructing a crude oil treating facility, construction of secondary recovery facilities and construction of a high pressure natural gas sales pipeline in Argentina. In Peru, $5.6 million was invested on EIA advancement and the preparation for field seismic activity in the second half of 2007 and in Colombia, $0.4 million was invested in the establishment of a small startup office and the incurrence of costs related to the acquisition of concessions. Capital expenditures for the three months ended September 30, 2007 were $26.1 million (2006 - $19.8 million). All capital spending year to date 2007 was internally financed from cash flow which exceeded outlays.

Petrolifera was in a strong financial position at September 30, 2007 with robust cash flow, $22.7 million of working capital and no debt.

The company's 2007 capital program includes expenditures to satisfy work commitments related to the Peruvian license blocks. The company is ahead of schedule in meeting these requirements and in 2007 expects to complete geophysical work prior to drilling wells on each block. Remaining 2007 capital expenditures are discretionary. The company has sufficient working capital and cash flow is being generated in Argentina to fund these planned capital expenditures. Required funds are being moved among Argentina, Barbados, Canada, Colombia and Peru. The company had originally anticipated an outlay of $76.0 million for capital expenditures by this time in our previously announced plans. The company now expects our full year 2007 capital expenditures will be approximately $106.5 million.

As previously announced the company has completed the establishment of a reserve-based US$100 million revolving credit facility, with initial available draws established at US$60 million. This further enhances Petrolifera's liquidity and financial capacity to take advantage of new investment opportunities.

The company's only financial instruments are cash and cash equivalents, short-term investments, accounts receivable, accounts payable and income taxes payable. It maintains no off-balance sheet financial instruments.

LONG-TERM INVESTMENTS

As at September 30, 2007, included in long-term investments were third party sponsored asset backed commercial paper ("ABCP") with a par value of $37.7 million. These investments are carried at management's estimate of fair value of $34.9 million. During the quarter the third party ABCP market in Canada experienced severe liquidity problems causing several third party ABCP conduits to default on redemptions of maturing notes. There is currently a proposal which calls for the notes to be converted into longer term floating rate notes which match the maturities of the underlying assets. Petrolifera had maturities originally scheduled for the ABCP between August 14th and August 15th, 2007 which were not repaid.

Petrolifera has recorded an impairment charge on the Canadian ABCP of $2.8 million based on the expected recovery of these notes. As there has been no market data available, management has estimated the fair value of these notes based on the probabilistic recovery of principal and interest. The actual timing and amount ultimately recovered from these notes may differ materially from this estimate which would impact the company's earnings.

SUBSEQUENT EVENTS

Subsequent to the end of the quarter Petrolifera commenced an arbitration procedure with respect to securing its 50 percent interest in the Salinas Grande I concession in La Pampa Province, Argentina. The designated partners have been reluctant to complete the transaction as agreed, necessitating this action.

Also, subsequent to the end of the quarter the former contract operator of the Puesto Morales/Rinconada Concession commenced an arbitration procedure against Petrolifera and others claiming wrongful dismissal and seeking financial compensation, including costs and general damages. Petrolifera is of the opinion the action is without merit and intends to respond and counterclaim. Potential damages, if any, are not quantifiable at this time, but in any event are not anticipated to be material to the company.

RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS

Under the terms of a Management Services Agreement with Connacher Oil and Gas Limited ("Connacher"), which originally expired in May 2007, Connacher provided all management, operational, accounting and general and administrative services necessary or appropriate to manage and administer the company. The fee for this service was $15,000 per month. From time to time Connacher also paid bills on

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Friday, November 30, 2007

Thursday, November 29, 2007

Wednesday, November 28, 2007

Tuesday, November 27, 2007

Monday, November 26, 2007

Friday, November 23, 2007

Base metals woes raise questions over world economy

Thursday, November 22, 2007

Wednesday, November 21, 2007

Post says Breakwater takes zinc's plunge on the chin

Copper, zinc futures plummet in Shanghai

Tuesday, November 20, 2007

Globe says Petrolifera, Petro Andina douse exit rumours

Petrolifera says re-examining not leaving Argentina

Monday, November 19, 2007

Petrolifera tests 1050 well at 2.4 mmcf per day

Friday, November 16, 2007

Thursday, November 15, 2007

Virginia Mines, Breakwater drill 30.45 m of 9.31% Zn

Wednesday, November 14, 2007

He said Petrolifera expects that a large portion of its field facilities at Puesto Morales will be completed by November, with the remainder to be completed by year-end. In a previous release, it had reported delays in completion of these field facilities.

In 2008, Beddis anticipates production of 16,000 barrels of oil equivalent a day, resulting in cash flow of C$2.53 a share. He had previously anticipated production of 19,000 barrels of oil equivalent a day and cash flow of C$3.25 a share in 2008.

GMP doesn't have an investment-banking relationship with Petrolifera and Beddis doesn't own shares of the company.

Tuesday, November 13, 2007

He said Petrolifera expects that a large portion of its field facilities at Puesto Morales will be completed by November, with the remainder to be completed by year-end. In a previous release, it had reported delays in completion of these field facilities.

In 2008, Beddis anticipates production of 16,000 barrels of oil equivalent a day, resulting in cash flow of C$2.53 a share. He had previously anticipated production of 19,000 barrels of oil equivalent a day and cash flow of C$3.25 a share in 2008.

GMP doesn't have an investment-banking relationship with Petrolifera and Beddis doesn't own shares of the company.

Monday, November 12, 2007

Saturday, November 10, 2007

Friday, November 9, 2007

Thursday, November 8, 2007

Bayswater proposal for property payment

Wednesday, November 7, 2007

Tuesday, November 6, 2007