Extract from yesterday's edition. GLTA

CRUDE OIL $97.44 -0.50

TAG OIL (T-TAO) $4.67 -0.12

VALEURA ENERGY (T-VLE) $1.06 n/c

In the sell-off we have seen in the resource stocks, one

must hope for a bottom somewhere, if only for the more

intriguing stories. After all, the price of oil is now in the

neighborhood of $97.00, which is a lot better than where it

has been much of the past year.

It still seems a little dismal for those companies that are

mainly natural gas and if you are invested in the heavy oil

companies of northern Alberta, where pipeline constraints

are causing net oil prices recently of as low as $52.00, you

know that they are currently are experiencing little joy.

But are stories like TAG Oil and Valeura Energy seeing a

bottom and a future?

We note Arno Richter of the Canaccord desk writing this

piece on Valeura Energy: “Giddy-Up Horsy. Shares of

Valeura Energy continued to trade higher as the market

anticipates an operational update from their exploration

activity in Turkey. In early January, the company’s partner

TransAtlantic Petroleum announced 2013 guidance along

with an operational update. In the Gaziantep area of the

Anatolian Basin of Turkey, TransAtlantic’s first horizontal

drilling location, Alibey-1H, tested 150 b/d of heavy oil from

the Mardin formation. Valeura holds a 26% interest in the

well, which has undergone first stage perforations only.

The partners expect to complete multiple intervals once

weather conditions improve and drill an appraisal location

during 2013. In the Karakilise region of the basin, TransAtlantic

has demonstrated the effectiveness of both horizontal

drilling and fracking with the Gosku-3H and Bahar-1

wells. These locations, which produced ~475 and ~575 b/d,

respectively, appear to have extended the prospectivity for

both the heavy-oil Mardin and light-oil Bedinan formations.

Canaccord Genuity International Energy Analyst Christopher

Brown commented that he uses a DCF analysis to

value both conventional and unconventional assets. Although

there is a potential return of over 500% to Brown’s

risked 2012E NAV of $6.90, he does not expect investors to

fully prepay for upside potential at this stage of exploration.”