PDP An Easy Double From Here- BreakOut Pending

Getting No Respect At All- Buy Them While They're Cheap
This Is A Double Within 3 mths

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OSC Catch Small Fish Lose Big Fish

Richer rogues not on radar TheStar.com - Business - Richer rogues not on radar

New study on corporate crime suggests system is stacked in favour of influential industry insiders

December 05, 2007

Tyler Hamilton
Business Reporter

Regulators charged with pursuing insider traders and other market scammers tend to target small-time crooks and shy away from high-profile figures with deep pockets and powerful lawyers, according to a new study out of Queen's University.

"What happens is that they bifurcate the population of rogues," says study author Laureen Snider, a professor of sociology who has spent 25 years researching corporate crime and the role of regulatory agencies.

"They try to concentrate their resources on where they're more likely to get action."

As part of her latest research, Snider conducted a number of anonymous interviews with enforcement officials at the Ontario Securities Commission and the British Columbia Securities Commission, as well as some RCMP officers within the force's four-year-old Integrated Market Enforcement Team.

She discovered immense frustration and a sense that the system, the way it's designed, is stacked against enforcement officials and in favour of industry "stakeholders" who help determine the rules that oversee them.

"You're dealing with very powerful actors, and these actors are referred to by and large as stakeholders, so they get the chance to shape legislation," Snider explains.

The OSC, for example, routinely holds consultation meetings with those in the financial industry, giving the perception that the regulator's primary role isn't to protect investors.

Snider says it's a model that gives unusual power to those in the financial sector who are regulated, pointing out that such an approach doesn't happen, and would never be accepted, with traditional criminal enforcement. "The police don't habitually consult prospective burglars on Criminal Code changes, but regulatory agencies must negotiate with those they are charged with regulating."

It's a major problem, she adds, "if you believe in equality. Our system is theoretically premised on equality."

During her interviews she also discovered that lawyers representing powerful clients routinely flood regulators and investigators with paperwork, resulting in major case delays as staff pore over a seemingly endless stream of documents and data.

"One of the officials I interviewed called it death by 53 cartons and boxes," she recalls.

OSC enforcement director Michael Watson, speaking at an investors gathering last month in Toronto, said it isn't unusual on specific cases to have to sift through hundreds of thousands of document pages. "It's just a function of the electronic age," he said.

"Right now we have four cases we're working on that have more than three million pages of documents. So the cases are getting bigger from that point of view."

Claude Lamoureux, the recently retired president and chief executive officer of the Ontario Teachers' Pension Plan, characterizes it as a battle "between a peewee hockey team and an NHL hockey club."

"Those being investigated or charged will understandably bring substantial high-quality resources to bear to defend themselves," wrote Nick Le Pan, a special adviser to the federal government, in a report released on Monday that examines how to make the RCMP's enforcement team program more effective.

"The program is `playing in the big leagues' and needs to act that way."

Snider, however, says it's challenging playing in the big leagues if the way the system is designed has major imbalances and other flaws.

"There's no way I defend it, but in order to understand why regulators make the decisions they do and why their hands are tied as they are, you have to look at that context."

Without leadership, enforcers become enablers TheStar.com - columnists - Without leadership, enforcers become enablers

December 05, 2007

Jennifer Wells

Here's my favourite bit from Nick Le Pan's report on Enhancing Integrated Market Enforcement Teams, released on Monday.

"In meeting with persons involved in capital markets enforcement in the U.S. and those in Canada ... I am struck by very significant differences in tone and the assertiveness of approach."

Le Pan, the former federal superintendent of financial institutions, offers a nod to those who critique the U.S. smackdown of white-collar criminals as overly zealous, and in no way recommends an emulation of an American-style justice system. But – and this is a big but in my view – Le Pan posits this: "I do believe that more of that tone of results focus, and assertiveness, is essential in Canada in order to get the results that most Canadians want."

So here we are in the virgin north of capital markets crime enforcement and we can't claim convictions to any meaningful degree and we can't claim investigative might and now we know we can't even claim assertiveness.

Like, can we possibly be any more Canadian?

Le Pan's task was to develop and guide a new plan to improve the effectiveness of IMETs, which, for a start, could use a new name for the enforcement teams.

But that's beside the point.

With rigour and insight, he examined the architecture and day-to-day management of the teams and found much wanting. "There are problems of leadership, accountability, oversight, management, timely focus, timely support for investigations, internal and external communications, and human resources that must be addressed."

Perhaps the coffee is bad, too.

Why, precisely, should we be paying such close attention to these revelations? Because, as Le Pan reminds, enforcement teams are one of the few truly national elements of capital markets regulation that exist in this country.

Of course that needs changing: a national securities regulator is a must. But the Le Pan report does much to issue a useful warning that just because a national body is created and just because a bunch of money is thrown at it, doesn't mean it actually works.

The IMETs idea, co-ordinating RCMP officers with external experts in white-collar crime, is sound, Le Pan says. But the architecture? Not so much.

Le Pan noted frictions and "surprises" between RCMP divisions and enforcement teams divisions, and between RCMP HQ and its own divisions. Here's a gem: "The HQ director of the IMET program had limited authority to actually direct or co-ordinate the program, which was essentially run as four semi-independent units under the guidance of four criminal operations managers."

What's missing: consistency, clarity, accountability. "The program cannot succeed if this is not rectified," Le Pan writes. (Those are my italics.)

What's particularly cheering is the way in which Le Pan rejects the notion that legislative differences between Canada and the U.S. fully explain the lack of results here in Canada measured against the abundant results there, south of the border. This is one of the puffy, warm blankets that Canadian enforcers have been snuggled under for far too long a time.

"Credibility comes from results," writes Le Pan, who later adds, "A high per cent of investigations that are started should result in charges, on average. (Otherwise, original case selection or conduct of investigations is questionable.)"

Rigorous oversight to ensure "appropriate pace and direction" of investigations is one proposed remedy. Fixing targeted times between the start of investigations and decisions taken on a case (to charge or not to charge) is another. Balanced scorecard recording to link goals and results is a third.

Leadership. Lots comes down to leadership. Assertive leadership. In the absence of that, Canada's cops, its regulators, its crime fighters aren't enforcers. They're enablers.

Ontario reveals ABCP writedown TheStar.com - Business - Ontario reveals ABCP writedown

Finance Minister says $100 million charge won't affect province's bottom line

December 04, 2007

David Friend
THE CANADIAN PRESS

Some of Canada's provinces are feeling the sting of exposure to asset-backed commercial paper, the short-term investment vehicles that have saddled corporations around the world with unexpected losses.

Others, however, remain high and dry after refusing to put their money into the investments, considering them too risky.

On Tuesday, the Ontario government disclosed that it would take an estimated writedown of less than $100 million linked to ABCP.

But Finance Minister Dwight Duncan said the writedown wouldn't affect the province's bottom line "in a significant way."

"When the writedown occurs – and it's a small portion – it doesn't impact the income statement at all," he said at Queen's Park, the provincial legislature.

ABCP is a type of short-term security representing packages of mortgages, credit-card receivables and other debts.

The notes normally roll over uneventfully as they mature, but buyers disappeared in August amid worries about the underlying credits as fear deepened about the U.S. subprime mortgage collapse.

Since then, banks and corporations around the world have begun to disclose multi-million-dollar writedowns that have cut into profits.

Ontario's Ministry of Finance said the provincial government holds about $719.5-million worth of ABCP, representing less than 10 per cent of the $9-billion cash reserve – or about 1 per cent of the annual budget.

"It hurts, but it hurts in the balance sheet," Duncan said.

"It was spent in years past and already accounted for. The investments were done, as I understand it, last year and these are holdings that are on the statement."

Last month Alberta's Crown corporation ATB Financial – once known as the Alberta Treasury Branches – said it would take a $79.6-million charge for potential losses and restructuring costs due to ABCP.

And last week, the head of Quebec's Caisse de depot et placement pension fund said it could lose up to $500 million – or about 0.3 per cent of its assets – due to ABCP woes.

Yukon Territory's government faces potential losses related to $36.5 million it chose to tie up in the investments earlier this year, while its neighbouring territories have longtime regulations that forbid them from putting money into the vehicle.

In Nunavut, Treasury Analyst David Hrynkow said local investment regulations don't allow the territory to put its money into ABCP.

"We based our regulations on the amount of risk that we wanted to take. Our primary concern was safety of capital," Hrynkow said in phone interview.

"I think we're just more conservative."

An attempt to shift short-term commercial paper into longer-term investments has been set for an event called the Montreal Accord. On Dec. 14, several key capital market investors will meet to discuss solutions to ease liquidity worries.

BWR +PDP Houses Today

PDP A Buy + New Oil Discovery!

Petrolifera Petroleum announces new Sierras Blancas oil discovery
at Puesto Morales, Argentina and provides operating update

CALGARY, Dec. 3 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
announces today that the PMN 1038 well on the company's 100 percent-owned and
operated Puesto Morales Concession in the Neuquén Basin, Argentina has
recently tested light gravity crude oil at a rate of approximately 1,500 bbl/d
from the Sierras Blancas Formation.

The results are important as the well is situated between the company's
Northern and Central lobes of the Puesto Morales Norte Field and indicates
continuity between the two accumulations. The well will be completed and tied
in shortly and it is anticipated the well will be produced initially at a rate
of between 500 bbl/d - 1,000 bbl/d.

Four drilling rigs and four service rigs continue to operate for
Petrolifera on its Puesto Morales and Rinconada Blocks which comprise the
concession. Included in current drilling is the 1017 well, situated southeast
of the central lobe; this is the first deviated well to be drilled on the
concession using the Quintana No. 13 rig, which was imported into Argentina
and has greater drilling depth capacity.

This rig has been used to drill a number of water injection wells during its break-in period.
The company's water treatment, water injection and water handling facilities are scheduled
for a December 2007 startup, which should increasingly impact on overall
production levels during the ensuing 18 months, as the waterflood pressure
maintenance scheme becomes operative and effective.

Separately, Petrolifera advises that a commissioning ceremony was
recently held for the company's high pressure natural gas pipeline which runs
from the Puesto Morales Norte field to the Medanito area. It is anticipated
the pipeline will initially handle approximately 10 mmcf/d of natural gas,
including associated gas from the surrounding oil field and some
non-associated natural gas from the Loma Montosa and Sierra Blancas
Formations. The rated capacity of the new pipeline with in-place compression
is 35 mmcf/d, which would allow for continuing sales expansion.

Recently, Petrolifera tested 2.3 mmcf/d of natural gas and 20 bbl/d of
condensate through a 14 mm choke from its PMOx-1001 well, located on the
western border of the concession. It appears probable this well will be tied
into the new high pressure pipeline for immediate sale to available industrial
markets. Additionally, the company recently tested over 1 mmcf/d from a basal
Loma Montosa zone in the 1007 well, located within the Puesto Morales Sur
Field. Crude oil was also tested from the Loma Montosa Zone 10 in this well
and following a frac, it is anticipated the well will be completed as a dual
zone producer and tied in to production facilities.

In Peru, the company's 2D seismic program on Ucayali Block 107 is
proceeding favorably with encouraging preliminary results. The company is also
advancing discussions to secure a suitable heli-transportable drilling rig for
use in drilling a well or wells on Block 107 during the latter months of 2008
and into 2009. Drilling is also anticipated on Block 106 in the Maranon Basin
during 2009, following completion of the company's Environmental Impact
Assessment and shooting a 550 kilometer 2D seismic program in 2008.

In Colombia, several drillable prospects have been defined on the Sierra
Nevada I license and plans are progressing to secure drilling rig commitments
for the second half of 2008. Petrolifera is pleased with the quality of
prospects it has generated in Colombia, including their associated reserve
potential.

Petrolifera Petroleum Limited is a Calgary-based crude oil and natural
gas exploration and production company engaged in activity in Argentina, Peru
and Colombia. The company owns or controls in excess of 6.5 million acres of
petroleum and natural gas rights in sub-Andean basins in South America. As
disclosed in the company's recent Investor Presentation, which is posted on
its website at www.petrolifera.ca, production is expected to increase to a
targeted level of 14,500 boe/d by year end 2008, reflecting the impact of
development drilling, the waterflood at Puesto Morales, increased sales of
natural gas and the impact of the company's ongoing 69 well drilling program
in Argentina. No volume impact for drilling success in either Peru or Colombia
is factored into the company's production outlook.

AN INTERVIEW WITH ANDY GUSTAJTIS,
ANALYST WITH DOMINICK AND DOMINICK
(As of November 28, 2007)

D.P: There is an interesting play in South America after
what you have mention about Latin America – Petrolifera
Petroleum, which has had a little bit of problems in Argentina,
but for anyone who has seen the seismic on their
projects in Peru gets excited.

A.G: With Peru's Camisea Gas Project, Peru is now on
the radar screen as a country that has the potential for
elephant discoveries.

There is a pipeline into the Pacific Coast; there are moves now underway to bring this gas by
LNG into North America.

I think Petrolifera has a very competent, technical team running the Company.

They have been very successful in Argentina, they hand-picked
the two licenses they got in Peru. They obtained those
licenses before the global oil industry woke up to the opportunities
in Peru. The early seismic is confirming they
have a huge opportunity which will take time but I am not
long the stock for a short term flip.

With success Petrolifera could be a multi-billion Company.

These type opportunities are extremely hard to land.


A.G: Being a little bit of a gambler, I would basically think that Pacific Energy (if they could get this refinancing accomplished and out of the way) could prove to be quite an exciting story. I would put them as my number one favorite. I’m hopeful that we are going to see some new contracts being announced from Sustainable Energy in the next few weeks,
if not months and if that happens, I think the stocks could get some momentum and move to new highs. And I still think that Connacher is so unbelievably undervalued in relationship to what it offers, that I would have to put Connacher as a strong buy here.

Andy Gustajtis is an Officer and Managing Director of D&D Securities Company which is a member of the IDA and the Canadian Investor Protection Fund. His comments are believed to be reliable but we cannot represent that the information is accurate or complete and it should not be relied on as such. D&D Securities Company, its officers, directors or employees from time to time may hold shares, options or warrants on any issue included in this interview. D&D Securities Company has actively participated in financing of ARISE Technologies, Corridor Resources, Connacher Oil & Gas, Sustainable Energy and Pacific Energy. Comments made should not be construed as an offer or solicitation to buy or sell and securities.