Published by Raymond James Ltd., a Canadian investment dealer.
Please see end of INsight for important disclosures. www.raymondjames.ca
MAY 28, 2010
Petromanas Energy Inc.
PMI-TSXV
Initiating Coverage: Looking for Big Oil on the
Mediterranean
Event
We are initiating research coverage on Petromanas Energy Inc. (Petromanas)
with an OUTPERFORM rating and a C$1.25 per share target price.
Action
We recommend buying the shares. Remaining in the high impact exploration
theme, we recommend selling WesternZagros (WZR-TSXV,
UNDERPERFORM, recent:
.28) for a switch into Petromanas.
Analysis
Petromanas currently has a 100% working interest in six exploration stage
blocks onshore Albania, including one with a legacy well reported as testing
37° API oil in 2001. The company’s third party resource estimator (Gustavson
Associates of Colorado - USA) evaluated these blocks as containing a potential
~6 billion barrels in prospective recoverable resources (NI 51-101 compliant
sum of P50 estimates for 14 prospects on the blocks, oil case).
We believe in addition to the large resource potential on these contiguous
blocks (a rarity in today’s oil & gas world) justifying an investment in the
company, Petromanas’ board has a proven track record in international oil &
gas –including two of the founding members and current board members of
Gran Tierra (GTE-TSX, STRONG BUY, recent $5.19). We view the decision of
these individuals – in addition to several of the other current Petromanas
board members – to recently join this start-up exploration stage oil & gas
company as a strong vote of confidence in these assets’ potential. From an
investment decision standpoint, we are of the view that the potential size of
the prize outweighs the risks associated with this type of drilling (deep & high
pressure). While we believe that current valuations and potential return to our
target could have justified a STRONG BUY rating, we are initiating coverage
with an OUTPERFORM rating to highlight our view of the risks inherent to
the pure exploratory nature of Petromanas, combined with the early stage
nature of the operations.
Valuation
Our valuation on Petromanas reflects our calculation of the company’s risked
NAV of C$1.33/shr.
INTERNATIONAL OIL & GAS PRODUCERS
Rafi Khouri, B.Sc., MBA
[email protected]
403.509.0560
Braden Purkis (Associate)
[email protected]
403.509.0534
RATING & TARGET
RATING *
Target Price (6-12 mths) *
Closing Price
Total Return to Target 213%
MARKET DATA
Market Capitalization ($mln) 246
Current Net Debt ($mln) (87)
Enterprise Value ($mln) 159
Shares Outstanding (mln, f.d.) 854
Avg Daily Dollar Volume (3mo, mln) 1.88
52 Week Range
.79 /
.12
KEY FINANCIAL METRICS
FY- Dec 31 2009A 2010E 2011E
CFPS (
.00) (
.00) (
.00)
P/CFPS nm nm nm
CFPS - 1Q nm 0.00 0.00
CFPS - 2Q nm 0.00 0.00
CFPS - 3Q nm 0.00 0.00
CFPS - 4Q nm 0.00 0.00
Risked NAVPS $1.33
P/NAV 30%
Revenue ($mln) - - -
Commodity Assumptions
WTI (US$/bbl) $62 $82 $95
Exchng Rate (US$/C$)
.88
.99 $1.00
Production
Oil (bbl/d) nm nm nm
Nat. Gas (mmcf/d) nm nm nm
Total (boe/d) nm nm nm
Net Debt/ CF nm nm nm
COMPANY DESCRIPTION
* New target and rating
Closing price as of May-21-10
All figures in C$, unless otherwise noted.
Sources: Raymond James Ltd.,ThomsonOne, CapIQ
OUTPERFORM 2
1.25
0.40
PetroManas is an international oil and gas company with
operations in Albania. The company currently has six exploration
blocks with an estimated 6 billion barrels of unrisked prospective
resource potential.
Publishing will insert chart here
RJ Equity Research ¦ Page 2 of 31
Table of Contents
Investment Highlights ................................................................... 3
Stock Valuation and Recommendation......................................... 4
Company Profile........................................................................... 9
Operations ...................................................................................11
Leadership Team ....................................................................... 20
Appendix: Albania ...................................................................... 22
Financial Statements .................................................................. 26
Fiscal Regimes........................................................................... 29
Risks .......................................................................................... 30
RJ Equity Research ¦ Page 3 of 31
Investment Highlights
Targeting elephant fields. Petromanas currently has an interest in a large
(~1.7 million acres) land position onshore Europe with the potential for multibillion
barrels of oil (or multi TCF of gas) discoveries to be made. While
industry sources have indicated that other such potential exploration prizes
can still be found elsewhere (albeit rarer and rarer) in today’s oil & gas world,
we have observed that these other resources typically tend to be either in
relatively higher risk jurisdictions (i.e. the lack of a definitive petroleum
legislation in Iraq/Kurdistan ), or in countries that limit - or prohibit - outside
investment in oil & gas (i.e. Saudi Arabia).
A proven petroleum system. In addition to a legacy well reported as having
tested 37° API oil from one of Petromanas’ blocks, we highlight that Bankers
Petroleum (BNK-TSX, STRONG BUY, recent $7.05) reports ~6 billion barrels of
Original Oil in Place from two fields in shallower horizons in close proximity
to structures identified on several of Petromanas’ blocks. Bankers currently
books 422 million barrels (3P) reserves from said fields, in addition to 838
million barrels in contingent resources. We also highlight our view that
Albania currently offers an attractive oil & gas regime. In addition to being a
NATO member, Albania has also recently applied to enter the European
Union, strengthening our view of political stability and limited risk of any
negative changes to oil & gas terms.
Proven board of directors with an extensive network. We highlight
Petromanas’ board of directors as proven individuals when it comes to value
creation from international oil & gas corporations. Several of Petromanas’
board members were founders of Gran Tierra, helping to grow that company
into a ~C$1.3 billion market cap company with ~20,000 bopd in ~five years.
Saxon Energy Services (sold for ~$600 million) was another public company in
which these board members were also involved.
Building a solid management team. It is our view that given the extensive
network base of the current board (seasoned international oil & gas
professionals), Petromanas should be able to attract a solid complement
(including deep drillers) to their current management structure within the
near term, providing the company with the expertise required to drill some of
the deeper structures currently identified. We believe that Petromanas is
currently actively recruiting an experienced deep driller(s) to augment the
solid geologists and engineers currently with the company.
Risks to investment thesis and target price are listed in the Risks section.
An experienced board …
Large exploration
potential…
…with a extensive
contacts
…in a proven petroleum
basin
RJ Equity Research ¦ Page 4 of 31
Stock Valuation and Recommendation
We have prepared an NPV (DCF, 11% after tax) summary for Petromanas’
exploration assets in Albania.
Exhibit 1: Risked Contingent Estimated Net Asset Value Summary
Source: Petromanas Energy Inc., Raymond James Ltd.
Prospective Resource Unrisked NPV Unrisked NPV Risking Risked NPV Risked NPV
mm Barrels US$ million Per share US$ million Per share
Net cash/(debt)* C$201 C
.23 100% C$201 C
.23
Upside Potential:
Block 2
Shpiragu 666 US$5,104 US$5.98 5% US$255 US
.30
Block 3
Shpiragu South 1 1,067 $6,048 $7.09 2% $121
.14
Shpiragu South 2 1,077 $5,835 $6.84 2% $117
.14
Block A
Jubani 151 $1,094 $1.28 2% $22
.03
Block B
Gjurice 644 $4,138 $4.85 2% $83
.10
West Gjurice 114 $945 $1.11 2% $19
.02
Rinasi 611 $4,025 $4.72 2% $80
.09
Block D
Nikel 373 $2,752 $3.22 2% $55
.06
Kashari 184 $1,221 $1.43 2% $24
.03
Kamez 367 $2,354 $2.76 2% $47
.06
Block E
Papri 351 $2,348 $2.75 2% $47
.06
Sauk 404 $2,611 $3.06 2% $52
.06
Rova 54 $357
.42 2% $7
.01
West Rova 42 $320
.38 2% $6
.01
6,105 39,151 45.87 936 1.10
Net asset value US$39,352 US$46.10 US$1,137 US$1.33
Net asset value (C$) C$39,352 C$46.10 C$1,137 C$1.33
*Includes potential exercise of options and warrants
FD share count (853.53M) excludes the potential 50 million performance shares to be issued on reserves booking of 50 million bbls or higher
RJ Equity Research ¦ Page 5 of 31
We calculate a risked NAV of C$1,137 million, or C$1.33 per share for
Petromanas, on which we base our C$1.25/shr target price. Given the
complexities of deep wells in high pressure environments, we are opting to
use a more conservative risking for the Petromanas structures vs. the 5% to
10% we use for other higher impact exploration prospects within the Raymond
James Ltd. international oil & gas coverage universe. We would expect to revisit
our current risk assumptions as the company has indicated that it intends
to further strengthen its management team, as well as carry out additional
seismic activity over the next 12 months. Given the legacy oil discovery on
Shpiragu, we are assigning a 5% risking on the structure (highest for all of the
company’s targets). All other structures are risked at 2% (vs. our typical 5%) to
reflect our view of the operational complexities of deep drilling, and criticality
of having the right team in place.
As a comparative, WesternZagros held a market valuation of ~C$620 million
prior to drilling of Sarquala-1. Note that WesternZagros has a pre-drill third
party audited estimate of ~1 billion barrels prospective resources. While our
valuation call is similar to what markets were willing to price WesternZagros
at, we have a materially higher level of confidence in the ability of the
Petromanas board to attract a management team with the ability to drill deep
wells on time and budget than has been the case with the two wells drilled to
date by WesternZagros’ management.
A final valuation comparative (which we believe should only be used as one of
many valuation tools as it captures neither fiscal term variances between
countries, nor geological risking) is provided in Exhibit 2, highlighting our
thesis that Petromanas is definitely undervalued on a EV/prospective resource
barrel basis (the resource barrel estimates used are based on each company’s
third party resource engineering firm’s estimate).
We calculate a risked
NAV of C$1.33 per
share
RJ Equity Research ¦ Page 6 of 31
Exhibit 2: EV/Prospective Resource Estimate Comparative Table
Source: Petromanas Energy Inc., Capital IQ, Longford, Vast, WesternZagros, Raymond James Ltd.
For Petromanas, our NPV calculation is based on prospective resources (third
party engineering firm audited to NI 51-101 standards) as the company does
not currently book any reserves, and assumes the oil case.
Given Albania’s close proximity to the European gas market, and the large
resource potential, we would expect the company to be able to monetize gas
discoveries, although development timelines could be slightly longer than for
oil. As such, we would not consider any gas discoveries as negative.
Price (C$) EV Prospective Rec Implied
Ticker 21-May-10 (C$Mln) Res. (Mln boe) C$/boe
Kurdistan
Longford* LFD-V C
.20 C$19 53 C
.36
Vast VST-V C
.65 C$131 167 C
.79
WesternZagros WZR-V C
.28 (C$10) 957 (C
.01)
PetroManas PMI-V C
.40 C$159 6,105 C
.03
* Prospective resource for Chia Surkh field only
RJ Equity Research ¦ Page 7 of 31
Exhibit 3: Location of Current Mapped Prospects
Source: Petromanas Energy Inc., Raymond James Ltd.
RJ Equity Research ¦ Page 8 of 31
Based on our evaluation of the company’s work commitments, we currently
model ~US$25 million in forecasted capital expenditures for 2010 (this includes
potentially drilling a shallow target later in the year), although we expect to
fine-tune this estimate following release of a formal budget by the company.
For 2011, we currently forecast ~US$50 million in capital expenditures, again
subject to revision following an official budget by the company.
Exhibit 4: Petromanas Potential Value Creation
Source: Petromanas Energy Inc., Raymond James Ltd.
0
5
10
15
20
25
30
35
40
45
50
Net Cash
Shpiragu
Shpiragu South 1
Shpiragu South 2
Jubani
Gjurice
West Gjurice
Rinas
Nikel
Kashari
Kamez
Papri
Sauk
Rova
West Rova
C$ per share
RJ Equity Research ¦ Page 9 of 31
Company Profile
Petromanas is an exploration stage international oil and gas company,
currently focused on high impact exploration onshore Albania. The company’s
shares trade on the TSX Venture exchange under the symbol PMI. The
company was recently formed via a reverse take-over transaction involving
the acquisition by WWI Resources Ltd. (now Petromanas) of Manas Adriatic
GmBH (holder of the three PSCs for these six Albanian blocks), concurrent
with a $25 million equity financing which closed on February 24, 2010. On
May 10, 2010, the company agreed to issue 187.5 million units at a price of

.40 per unit, with each unit consisting of one common share and one-half of
one common share purchase warrant which closed on May 27, 2010.
Including this recent capital raise, we calculate that the company has 615.7
million shares outstanding and $87 million in working capital. In addition,
Petromanas has 237.8 million warrants and options (100 million of which
expire February 2015, with a strike of C
.45/shr, and another 93.8 million of
which expire May 26, 2012 with a strike of C
.60/shr and a call option at
$1.10/shr). Also note that as part of the acquisition of the Albanian assets,
Petromanas has agreed to issue 50 million performance shares to Manas
Petroleum (MNAP-OTCBB) as follows: an additional 25 million shares if
Petromanas confirms 50 million boe of 2P reserves on said licenses (NI51-101
compliant report) and up to an additional 25 million shares in 0.5 million
increments for each additional 50 million boe of 2P reserves (NI51-101
compliant).
RJ Equity Research ¦ Page 10 of 31
Exhibit 5: Shares Outstanding (as at May-27-10)
Source: Petromanas Energy Inc., Raymond James Ltd.
Basic Shares (Mln)
Basic existing shares 128.2
Shares issued to vendor 200.0
$25MM unit issuance 100.0
$75 MM unit issuance* 187.5
Basic Shares O/S 615.7
Dilutive Securities Fully Diluted
Existing warrants 15.0
Warrants forming part of $25MM unit issuance 100.0
Warrants forming part of $75MM unit issuance* 93.8
Options Series 1 1.1
Options Series 2 0.7
Options Series 3 2.3
Options Series 4 1.0
Options Series 5 23.5
Options Series 6 0.5
237.8
Fully Diluted Shares Modelled 853.5
Performance Shares Fully Diluted
2P reserves greater than 50 million boe 25.0
Incremental reserves above 50 million boe 25.0
50.0
Total Fully Diluted Shares 903.5
*Includes over-allotment of $15M
RJ Equity Research ¦ Page 11 of 31
Operations
Petromanas currently has a 100% interest in three production sharing contracts
(PSC) for a total of 6 exploration stage blocks in Albania. These blocks cover
~1.7 million net acres onshore Albania, in close proximity to existing
production (including that from Bankers Petroleum).
Exhibit 6: Petromanas Property Breakdown
Source: Petromanas Energy Inc., Bankers Petroleum, Raymond James Ltd.
Petromanas
Energy Inc.
Petromanas
Energy Inc.
Bankers
Petroleum
RJ Equity Research ¦ Page 12 of 31
Petromanas’ blocks lie in a NW to SE trending fold and thrust belt (FTB) which
is part of the Alpine-Mediterranean orogenic (mountain) belt system. FTBs are
belts of deformed sedimentary rock in which the layers are folded and
duplicated by thrust faults, and tend to be common at the external edges of
orogens (mountains). A classic example of FTB (and associated large
hydrocarbon resources) occurs in The Rocky Mountains: (Main Ranges, Front
Ranges, and Foothills together make up a classic foreland fold-thrust belt).
Kurdistan’s Zagros fold and thrust belt is another classical example of a FTB
with giant oil & gas fields. Petromanas’ primary exploration targets involve
sub-thrust fractured carbonate reservoirs similar to the discoveries in adjacent
Italy (refer to the Appendix for more details on Albania’s geology).
Exhibit 7: Adriatic System
Source: Petromanas Energy Inc., Raymond James Ltd.
Blocks 2 & 3 Contract
In November 2008, DWM Petroleum AG (a Manas Petroleum subsidiary)
signed a Production Sharing Contract (PSC) with Albania’s Ministry of
Economy, Trade and Energy (represented by the Albanian National Agency of
Natural Resources – AKBN) for blocks 2 & 3. Following ratification by the
Council of Ministers of the Republic of Albania, this PSC became effective on
July 31, 2009, for a three year exploration period, extendable for two
subsequent exploration periods covering two years each (subject to required
relinquishments for each phase). In the event of a commercial discovery, a 20
year development and production period (extendable by 5 years subject to
approval by AKBN) would begin from the date of commencement of
commercial production. These two blocks cover ~3,444 km2 (~851,000 acres),
RJ Equity Research ¦ Page 13 of 31
and extend over the Ionian tectonic zone, a proved oil province with most of
Albania’s existing oil fields located within this area. As an aside, note that
~300+ million barrels of oil have been reported as produced from shallow oil
fields in close proximity to these blocks (including from shallower horizons on
the blocks). Specifically note the location of Bankers Petroleum’s 5.7 billion
barrels Original Oil in Place (OOIP) Patos Marinza oil field in relation to block
2 in Exhibit 8 (Patos Marinez).
Exhibit 8: Blocks 2 and 3 Locations
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 14 of 31
Minimum phase I (expiring July 2012) work commitments for the PSC include
the reprocessing of 150 Km of 2D seismic, the drilling of one well, and other
G&G work, for total expenditures of at least ~US$8.5 million. Each of the
subsequent exploration phases (2 years each) would require the drilling of one
exploration well (to 4,000 m minimum depth) plus some G&G work for total
commitments per phase of ~US$8.3 million.
There are currently three identified prospects on blocks 2 & 3, identified on 2D
seismic data as sub-thrust complex structures that resulted from several
episodes of thrusting at depths in excess of ~4,000 meters. These are Shpiragu,
Shpiragu South 1 and Shpiragu South 2. Petromanas has also identified a lead
on block 3 (Krasi), which requires (in our view) further analysis and
interpretation prior to maturing into a prospect.
The Shpiragu Prospect is located in the central part of block 2 and is estimated
by Gustavson to potentially contain 666 million barrels (P50) of prospective
recoverable oil. In late 2000/early 2001, Occidental (OXY-NYSE) and partners
were reported to have drilled a ~5,000 m deep well on Block 2 (Shpiragu-1). It
is our understanding that this well tested ~400 bopd (average of intermittent
test) of ~37 °API oil. We expect Petromanas to re-enter the Shpiragu-1 well
(~US$22 million estimated for the well). This could then be followed by a well
on Shpiragu South 2 (~1 billion bbls P50 prospective recoverable oil - block 3),
and a possible well on Shpiragu South 3 (~1 billion bbls P50 prospective
recoverable oil - block 3), at expected costs of US$15 million to US$18 million
per well. Gustavson currently estimates a 36% chance of success for this play,
mainly as they consider that the Occidental Shpiragu-1 quasi eliminates the
risk of hydrocarbons not being present. While we believe that a ~35% chance
of success is realistic based on the information available for analysis on
Shpiragu-1, we are opting to risk the Shpiragu-1 re-entry at 5%, and the other
two structures at 2% in our valuations to reflect drilling risks, as well as
current limited deep drilling expertise within the company. Note that
Shpiragu South 2 is expected to be the shallowest structure of the three, and
Shpiragu the deepest. We would expect these wells to take ~4 to 6 months to
drill.
RJ Equity Research ¦ Page 15 of 31
Blocks A&B and D&E contracts
On July 31, 2007, DWM Petroleum AG signed two Production Sharing
Contracts (PSC) with Albania’s Ministry of Economy, Trade and Energy
(represented by the Albanian National Agency of Natural Resources – AKBN)
– one for blocks A & B and the second for blocks D & E. Following ratification
by the Council of Ministers of the Republic of Albania, these two PSCs became
effective on December 26, 2007, for a three year exploration period, extendable
for two subsequent exploration periods covering two years each. In the event
of a commercial discovery, a 20 year development and production period
(extendable by 5 years subject to approval by AKBN) would begin from the
date of commencement of commercial production. These four blocks cover
~3,160 km2, and extend over the Kruja, Krasta-Cukali, Mirdita, Ionian, and
Albanian Alps tectonic zones.
Minimum phase I (expiring December 26, 2010) work commitments for the
blocks A & B PSC (as per a revised plan approved by AKBN) include the
reprocessing of 200 Km of 2D seismic, the acquisition of 190 Km of new 2D
seismic, and other G&G work, for total expenditures of at least ~US$2.1
million. To date, the company has indicated acquiring 190 Km of new 2D
seismic data in blocks A and B at a cost of US$3.0MM, as well as completing
the required G&G work and reprocessing of legacy data. Each of the
subsequent exploration phases (2 years each) would require the drilling of one
exploration well (to 3,000 m minimum depth) plus G&G work for total
commitments per phase of ~US$6.3 million.
Similarly, for the blocks D & E PSC, minimum phase I (expiring December 26,
2010) work commitments (as per a revised plan approved by AKBN) include
the reprocessing of 200 Km of 2D seismic, the acquisition of 105 Km of new 2D
seismic, and other G&G work, for total expenditures of at least ~US$1.4
million. To date, the company has indicated completing the reprocessing of
200 Km of 2D seismic on blocks D & E, as well as required G&G work. The
required 105 Km of new 2D seismic acquisition required under phase I
(~US$875,000 cost) is planned for 2H10. Each of the subsequent exploration
phases (2 years each) would require the drilling of one exploration well (to
3,000 m minimum depth) plus some G&G work for total commitments per
phase of ~US$6.3 million. There are currently eleven prospects on those four
blocks, identified on 2D seismic data as trending on a NW/SE structural thrust
feature. Expected depths of the prospects range from 1,300 meters to in excess
of ~5,000 meters.
RJ Equity Research ¦ Page 16 of 31
Exhibit 9: Blocks A, B, D & E locations
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 17 of 31
Block A
At the end of 2009, Petromanas has defined one prospect (Jubani) on block A,
with a P50 estimate of prospective recoverable oil resources of 151 million bbls
(Gustavson Associates resources report). Note that in the event of gas, Jubani
is estimated by Gustavson at 632 Bcf of prospective recoverable gas resource
(P50). This structure lies within the Kruja (under the Krasta-Cukali zone) at an
approximate depth (top of structure) of 1,400 meters. As such, we would
expect budgeted costs for this well to be ~US$5 million to US$6 million.
Exhibit 10: Jubani Prospect
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 18 of 31
Block B
At the end of 2009, Petromanas has defined three prospects on block B,
Gjurcia, West Gjurcia and Rinasi. Gustavson estimates respective P50
prospective recoverable oil resources of 644 million bbls, 114 million bbls and
611 million bbls for these prospects. Note that in the event of gas, Gjurcia is
estimated by Gustavson at 6.1 Tcf of prospective recoverable gas resource
(P50), West Gjurcia at 1 Tcf and Rinasi at 5.7 Tcf. Given the projected depths of
the Gjurcia, West Gjurcia, and Rinasi prospects (~3,600 meters, ~3,900 meters,
and ~3,300 meters respectively for top of structure), we estimate that per well
costs could range from US$15 million to ~US$20 million.
Exhibit 11: Block B Prospects
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 19 of 31
Block D
At the end of 2009, Petromanas has defined three prospects on block D, mainly
Nikel, Kamez & Kashari. Gustavson estimates respective P50 prospective
recoverable oil resources of 373 million bbls, 367 million bbls and 184 million
bbls for these prospects. Note that in the event of gas, Nikel is estimated by
Gustavson at 3.6 Tcf of prospective recoverable gas resource (P50), Kamez at
3.5 Tcf and Kashari at 1.7 Tcf. Given the projected depths of the Nikel, Kamez,
and Kashari prospects (~5,000 meters, ~4,900 meters, and ~4,800 meters
respectively for top of structure), we estimate that per well costs could be
~US$20 million or higher. We do note that we believe these structures will
probably require additional definition via future seismic to reduce risks prior
to drilling.
Exhibit 12: Block D & E prospects
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 20 of 31
Block E
At the end of 2009, Petromanas has defined four prospects on block E, mainly
West Rova, Papri, Rova & Sauk. Gustavson estimates respective P50
prospective recoverable oil resources of 42 million bbls, 351 million bbls, 54
million bbls and 404 million bbls for these prospects. Note that in the event of
gas, West Rova is estimated at 385 Bcf of prospective recoverable gas resource
(P50), Papri at 3.3 Tcf, Rova at 541 Bcf and Sauk at 3.9 Tcf. Given the projected
depths of the West Rova, Papri, Rova & Sauk prospects (~3,700 meters, ~3,900
meters, 5,500 meters, and ~4,900 meters respectively for top of structure), we
estimate that per well costs could range from ~US$15 million to ~US$25
million or higher.
Leadership Team
Following the recent creation of Petromanas via the acquisition of assets in
Albania, it is our understanding that the company’s board is in the process of
expanding the senior management team. Given the extensive background in
international oil & gas operations of several board members, we are of the
view that they will have the ability to attract a seasoned (and experienced in
thrust belt plays) staff to augment the company’s current management team
(as demonstrated by the recent joining of Dr. Cooper as Sr. Exploration
Advisor). Specifically, given the highly technical nature of some of the
company’s deeper targets, an experienced deep drilling team would be a very
welcome addition to the company. This could, in our view, lower the risks
associated with this exploration portfolio, potentially leading us to re-evaluate
our risking accordingly.
Verne Johnson, Chairman, brings extensive international oil & gas experience
to Petromanas’ operations. He began his career with Imperial Oil (IMOAMEX)
and Exxon (XOM-NYSE), and has been CEO and Director of a number
of independent oil companies. Mr. Johnson is currently Chairman of Fort
Chicago Energy Partners LP (FCE.UN-TSX), and a Director of Gran Tierra
Energy, and Essential Energy Services Trust (ESN.UN, OUTPERFORM, recent:
$1.14), as well as a number of private companies. He is an engineering
graduate from the University of Manitoba.
Gerard Protti, Director, brings 35 years of experience in the private and public
energy sectors, including 14 years in several executive officer roles at
PanCanadian Petroleum and EnCana Corporation (ECA-TSX, MARKET
PERFORM, recent: $31.91) including marketing, operations, new ventures,
offshore and international development and corporate relations. He currently
serves as Executive Advisor at Cenovus Energy (CVE-TSX, OUTPERFORM,
RJ Equity Research ¦ Page 21 of 31
recent: $26.97), Chairman of the Board of FT Services, and as board member of
Sub-One Technology and Alberta Innovates Technology Futures. In addition,
Mr. Protti was a past (and founding) Chairman of the Canadian Association of
Petroleum Producers (CAPP) and a past Chairman of the Canadian Chamber
of Commerce. He has graduate and undergraduate degrees in economics from
the University of Western Ontario and University of Alberta respectively.
Jeff Scott, Director & COO, brings close to 30 years of oil & gas experience to
Petromanas. He was a founder and currently serves as Chairman of Gran
Tierra, and serves as President of Postell Energy Co. (private oil & gas
company). Mr. Scott is also on the board of Essential Energy Services Trust,
Galena Capital Corp. (FYI-TSXV), as well as Tuscany International Inc.
(private co).
Dr. Mark Cooper, Senior Exploration Advisor, brings extensive international
oil & gas exploration expertise and experience to the company. Some of Dr.
Cooper’s achievements include the Sukunka-Bullmoose gas play in NE British
Columbia and the Cupiagua, Volcanera and Florena Fields in Colombia. He
currently has his own consulting practice specializing in International
Exploration and Structural Geology. His most recent role within an oil & gas
company was as VP Middle East and Global New Ventures for EnCana until
his retirement in 2007. Dr. Cooper is a graduate of Imperial College, London
and Bristol University (B.Sc. Geology and Ph.D.).
Erik Herlyn, CEO, brings extensive experience in the finance and hydrocarbon
industries to Petromanas. He was in several managerial positions from large
International Business Consulting firms such as KPMG, BearingPoint and
Capgemini. Mr. Herlyn is mechanical and production engineer (Trinity
University Dublin, University of Bremen).
Heinz Juergen Klaus Scholz, Co-Chairman, brings extensive eastern
European business experience to Petromanas. He is a physicist and engineer
by training, and has built factories and telecommunication networks in the
Former Soviet Union (1980s).
RJ Equity Research ¦ Page 22 of 31
Appendix: Albania
Albania, a Mediterranean rim European country, is bordered by Montenegro
to the north, Greece, Serbia and Macedonia to the east, the Adriatic Sea to the
west, and Greece to the south. Albania has a total area of ~29,000 Km2, with a
population of approximately 3.6 million, and a GDP (PPP, 2009 est) of US$22.9
billion (US$6,300 per capita). Following 46 years of communism, Albania
transitioned to a multiparty democracy during 1990-1992. The Democratic
Party’s victory in the 2005 general elections has led to renewed economic
growth and reduction of crime and corruption. Specifically, Albania’s GDP
grew by 3.7% in 2009 with inflation reported as low and stable. Albania is
currently a NATO member, and is a potential candidate for European Union
membership.
Albanian Geology
Three major sedimentation periods are recorded in Albania. The oldest
occurred during the Paleozoic Era (Ordovician through Devonian Period and
then during the Permian). The second occurred during the Mesozoic Era
(Triassic through the Cretaceous), and the most recent phase was from the
early Tertiary (Paleocene epoch) to the Recent. The region also witnessed
numerous tectonic/orogenic intervals including the Caledonian (Ordovician),
the Hercynian (Carboniferous), and several during the Triassic, Jurassic, Late
Cretaceous, Oligocene, Miocene and the Pliocene. The mountain range of
interest in Albania is the Albanides, which represents a portion of the southern
branch of the Mediterranean Folded Alpine Belt. Two major peleogeographic
domains form the Albanides, mainly the Internal Albanides and the External
Albanides.
RJ Equity Research ¦ Page 23 of 31
Exhibit 13: Albanides Tectonic Units
Source: Petromanas Energy Inc.
The Internal Albanides are comprised of the Korabi, Mirdita, Albanian Alps,
Gashi and Krasta Cukali zones. The External Albanides are comprised of the
Kruja, Ionian and Sazani zones. The stratigraphy of the Albanides includes
metamorphic rocks in the Korabi Zone, evaporitic formations (salts &
anhydrites) in the Korabi & Ionian zones, ophiolitic formations (plutogenic &
volcanic facies) in the Mirdita zone, carbonate formations (limestones &
dolomites) is widespread in the Albanides, various flysch formations exist in
the Krasta, Cukali, Albanian Alps, Ionian, Kruja and Mirdita zones.
Albanides source rocks are believed to be as follows. Good to excellent quality
type I/II source rocks are present in the Upper Triassic, Lower, Middle and
Upper Jurassic and Lower Cretaceous within Ionian Zone. Poor to good
quality type I/II source rocks in the Kruja zone’s Upper Cretaceous, while in
the Krasta and Cukali zone, type III source rocks are modeled as being within
the gas maturity window.
INTERNAL
ALBANIDES
EXTERNAL
ALBANIDES
RJ Equity Research ¦ Page 24 of 31
The main trap formation mechanism of interest in Albania is linked to the
compressional regime of Alpine orogeny, resulting in overthrusting, while
Flysch and flyschoidal deposits from the Oligocene & Miocene act as seals for
the existing oil fields in Ionian zone. Tortonian & Pliocene sequences are also
proved as good seals for oil & gas fields in the Albanides. As for reservoir,
both clastics and carbonates are known to be good reservoirs in Albania.
Exhibit 14: External Albanides Stratigraphy
Source: Petromanas Energy Inc.
RJ Equity Research ¦ Page 25 of 31
Albanian Petroleum History
Surface mined bitumen was reported in Albania in ~100 to 200 AD, in addition
to surface gas seeps known as ‘eternal fires’. The first oil discovery
(Drashovica Field) was made in 1918 following mapping initiated in 1912 by
Austrian and Italian geologists. Subsequent exploration drilling (on areas of
surface oil seeps) led to several Upper Miocene age clastic oil fields (Patosi in
1927 and Kucova in 1928 – both now operated by Bankers Petroleum), in the
south-central part of Albania. Following seismic acquisition in the 1950s and
1960s, deeper sub-thrusted carbonate reservoirs were identified, with a
number of discoveries made in Cretaceous to Eocene limestone (thrusted
anticlines formed during the Neogene in the Ionian Zone), including Visoka
(1963), Gorisht (1966), Ballshi (1967), Cakran (1977), Amonica (1980) and
Delvina (1987).
Exhibit 15: List of Albanian oil discoveries
Source: Petromanas Energy Inc., Raymond James Ltd.
Gravity Sulphur
(API) (%)
Drashovice 1918 Flysch 100-200 <10 ?
Patosi 1927 Mioc/sst 0-1200 12-24 2.5-6
Kucova 1928 Mess/sst 0- 1500 13-16 4
Marinza 1957 Mess/sst 1200-1800 12-35 04-Jun
Visoka 1963 Cret/Eoc.Carb 800-1000 5-16 05-Jun
Gorisht-Koc 1965 Cret/Eoc.lmst 1000-2500 17 6
Ballsh-Hekal 1966 Cret/Eoc. 1000-3000 12-24 5.7-8.4
14-37 Asg 2.5
Cond, 52 Con=5-7
Finiq-Krane 1973 Cret/Eocene .lmst 800-2000 10 3.7-4.3
31
Cond, 53
Divjaka 1963 Torton/sst 2400-3000 Gas Na
Pliocene
sst
Messinian
sst
Gas &
cond
Panaja 1988 Messiniansst 2500 Gas Na
Ad-4 (offshore) 1994 Messiniansst 2500-3100 Cond, 54.3 Na
Cret/Eoc.
lmst
Shpiragu 2001 4950 37 2,3
Na
Povelca 1987 Messiniansst 1800-3500 Na
Frakulla 1965 300-2500 Gas
0.5
Ballaj-Kryevidh 1983 300-1700 Gas Na
Delvina 1989 Cret/Eocene lmst 2800-3400
Cakrran-Mollaj 1977 Cret/Eoc. 3000-4500
FIELD Discovery
Year
Reservoir Depth (metres)
RJ Equity Research ¦ Page 26 of 31
Financial Statements
Exhibit 16: Financial Statements
Source: Petromanas Energy Inc., Raymond James Ltd.
$mln 2009A 2010E 2011E
ASSETS
Current assets
Cash and cash equivalents 0 58 7
Accounts receivable 0 0 0
Short term investment 4 5 5
Total Current Assets 4 62 12
Long term assets
Property, plant and equipment - 92 142
Other 1 - -
Total Assets 5 154 153
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities 0 0 0
Future income tax - 7 7
Liabilities of discontinued operations - - -
Other - - -
Total Current Liabilities 0 7 7
Long term liabilities
Long-term debt - - -
Other - - -
Total Long Term Liabilities - - -
Shareholders' equity
Share capital 11 153 153
Contributed surplus 7 7 7
Common shares to be issued 0 - -
Retained Earnings - - -
Deficit (12) (12) (13)
Total Shareholders' Equity 5 147 146
Total Liabilities and Shareholders' Equity 5 154 153
RJ Equity Research ¦ Page 27 of 31
Exhibit 17: Financial Statements (cont’d)
Source: Petromanas Energy Inc., Raymond James Ltd.
$mln 2009A 2010E 2011E
REVENUE AND OTHER INCOME
Gross sales - - -
Royalties - - -
Other 0 0 0
Total net revenue 0 0 0
EXPENSES
Operating - - -
Transportation - - -
General and administrative 0 1 1
Depreciation, depletion and amortization - - -
Interest on long-term debt - - -
Stock Based Compensation 0 - -
Other, net 0 0 0
0 1 1
GAIN (LOSS) BEFORE INCOME TAX (0) (1) (1)
Current income tax - - -
Future income tax (recovery) - - -
Net Income (0) (1) (1)
RJ Equity Research ¦ Page 28 of 31
Exhibit 18: Financial Statements (cont’d)
Source: Petromanas Energy Inc., Raymond James Ltd.
$mln
Cash Flow Statement 2009A 2010E 2011E
Operating Activities
Net Income (0) (1) (1)
Items not involving cash
Depreciation, depletion and amortization - - -
Stock Based Compensation 0 - -
Future income tax (recovery) - - -
Funds Flow from Operations (0) (1) (1)
Change in non cash working capital 0 - -
Net cash provided by (used in) operating activities (0) (1) (1)
Investing Activities
Capital expenditures
Exploration, development and other - (25) (50)
Other (0)
Net cash provided by (used in) investing activities (0) (25) (50)
Financing Activities
Long-term debt repaid - (9) -
Long-term debt issued (repaid) - - -
Common shares issued 0 96 -
Payment to DWM - (2) -
Fees to third party - (1) -
Other - (0) -
Net cash provided by (used in) financing activities 0 83 -
Increase in Cash 0 57 (51)
Cash and cash equivalents, beginning of period 0 0 58
CASH AT END OF PERIOD 0 58 7
RJ Equity Research ¦ Page 29 of 31
Fiscal Regimes
Petromanas’ blocks are subject to production sharing contracts defining the
royalty to be paid (based on R factors calculated as total revenue/total
expenditures), in addition to a 50% tax on taxable income.
Under the production sharing contracts covering blocks A & B and D & E, two
royalties are payable by Petromanas. The first royalty – the Government
Allocation – is based on total field production, and ranges from 10% (R factor
up to 1.5) to 15% (R factor above 2). The second royalty is AKBN’s share of
profit petroleum (calculated as petroleum remaining from total production
after deduction of government allocation and any expenditures), which ranges
from 0% (R factor up to 1.5) to 15% (R factor above 2.5).
Under the production sharing contract covering blocks 2 & 3, royalties are also
payable by Petromanas. The first royalty – the Government Allocation – is
based on total field production, and ranges form 0% (R factor up to 1.5) to 5%
(R factor above 2). The second royalty is AKBN’s share of profit petroleum
(calculated as petroleum remaining from total production after deduction of
government allocation and any expenditures), which ranges from 0% (R factor
up to 1.5) to 15% (R factor above 2.5). While the Government Allocation and
AKBN share of profit petroleum are lower for this PSC compared to the other
two, blocks 2 & 3 are also subject to a flat 10% royalty on available production,
creating almost similar fiscal terms for all three PSCs.
RJ Equity Research ¦ Page 30 of 31
Risks
Competition – The oil & gas industry is highly competitive and the
corporation competes with a substantial number of companies. There can be
no assurance that such competitors will not substantially increase the
resources devoted to the development and marketing of products and services
that compete with those of Petromanas or enter markets that Petromanas is
active in.
Commodity Price Volatility – The corporation is subject to the fluctuations in
oil, natural gas and other commodity energy prices. It is anticipated that the
international oil & gas industry has an inherently high capital cost due to large
construction projects. Nevertheless, changes in commodity prices could result
in a decision by Petromanas to suspend or reduce operations because such
operations are no longer economically viable. If production is not suspended
or reduced during such period, the low differential between the price of the
corporation’s end products and the cost of production could lower
Petromanas’ revenues.
Reserve and resource risks – Petromanas currently provides both internal and
third party resource evaluations on its assets. These calculations remain
dependent on long-term oil & gas pricing, geological assumptions made, and
the company’s ability to confirm/discover oil &/or gas on said assets. The
company does not currently have any booked reserves, and as such, an
investment in Petromanas is subject to exploration activity risks.
Drilling risks – Petromanas is focused on oil & gas exploration, including the
potential to drill relatively deep wells (~5,000+ meters). These wells inherently
carry a higher operational risk than shallower wells due to, amongst other
risks, the higher pressures and temperatures typically encountered at these
depths.
Regulatory and Political – Petromanas’ operations are subject to a variety
international laws, regulations and guidelines, including laws and regulations
relating to health and safety, the conduct of operations, the protection of the
environment and the manufacture, management, transportation, storage and
disposal of certain materials used in operations. Changes to laws, regulations
and guidelines due to environmental changes, unforeseen environmental
effects, general economic conditions and other matters may cause adverse
effects to operations. The company’s properties are located in Albania. The
company’s operations, financial results, and valuation could be adversely
affected by events beyond its control taken by the current or future
governments in Albania with respect to policy changes regarding taxation,
regulation, and other business environment changes.
RJ Equity Research ¦ Page 31 of 31
Environmental Liability – Petromanas is subject to various environmental
laws and regulations enacted in the jurisdictions in which it operates,
including the governance of the manufacturing, processing, importation,
transportation, handling and disposal of certain materials used in operations.
Petromanas may become liable for damages against which it cannot
adequately insure against or which it may elect not to insure because of high
costs or other reasons. Petromanas may be required to increase operating
expenses or capital expenditures in order to comply with any possible new
restrictions or regulations.
Operating Risk and Insurance – Operational risks and hazards could expose
Petromanas to substantial liability for personal injury, loss of life, business
interruption, property damage or destruction, pollution and other
environmental damages. While insurance coverage is expected to address all
material risks to which it is exposed and is adequate and customary in its
current state of operations, such insurance is subject to coverage limits and
exclusions and may not be available for the risks and hazards to which
Petromanas is exposed.
Additional Financing – In order to execute our discussed plans, the
corporation may require additional financing (equity or other such methods to
raise capital) to support ongoing operations, to undertake capital expenditures
or to undertake acquisitions or other business combination transactions. There
can be no assurance that additional financing will be available to Petromanas
when needed or on terms acceptable to Petromanas. Inability to raise financing
to support ongoing operations or to fund capital expenditures or acquisitions
could limit growth or impact the longer term sustainability of Petromanas.
Currency Exchange Rate Risk – Any revenue generated from the operations
of Petromanas may be denominated in U.S. dollars or other international
currencies so that fluctuations in the currency exchange rates may have an
impact on the results of Petromanas.
Notes
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RJ Disclosures
Analyst Certification
The views expressed in this report (which include the actual rating assigned to the company as well as the analytical
substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject
securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific
recommendations or views contained in this research report.
Stock Ratings
STRONG BUY 1: the stock is expected to appreciate and produce a total return of at least 15% and outperform the
S&P/TSX Composite Index over the next six months. OUTPERFORM 2: the stock is expected to appreciate and
outperform the S&P/TSX Composite Index over the next twelve months. MARKET PERFORM 3: the stock is
expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and is
potentially a source of funds for more highly rated securities. UNDERPERFORM 4: the stock is expected to
underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold.
Distribution of Ratings
Out of 232 stocks in the Raymond James Ltd. (Canada) coverage universe, the ratings distribution is as follows:
Strong Buy and Outperform (Buy, 70%); Market Perform (Hold, 27%); Underperform (Sell, 3%). Within those rating
categories, the percentage of rated companies that currently are or have been investment-banking clients of
Raymond James Ltd. or its affiliates over the past 12 months is as follows: Strong Buy and Outperform (Buy, 43%);
Market Perform (Hold, 30%); Underperform, (Sell, 0%). Note: Data updated monthly.
Risk Factors
Some of the general risk factors that pertain to the projected 6-12 month stock price targets included with our
research are as follows: i) changes in industry fundamentals with respect to customer demand or product/service
pricing could adversely impact expected revenues and earnings, ii) issues relating to major competitors, customers,
suppliers and new product expectations could change investor attitudes toward the sector or this stock, iii)
unforeseen developments with respect to the management, financial condition or accounting policies or practices
could alter the prospective valuation, or iv) external factors that affect global and/or regional economies, interest
rates, exchange rates or major segments of the economy could alter investor confidence and investment prospects.
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RJ Disclosures
Review of Material Operations
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RJ Disclosures
Company-Specific Disclosures (RJL = Raymond James Ltd.)
1a RJL has managed or co-managed a public offering of securities within the last 12 months with respect to the
subject company.
1b RJL has provided investment banking services within the last 12 months with respect to the subject company.
1c RJL has provided non-investment banking securities-related services within the last 12 months with respect to
the subject company.
1d RJL has provided non-securities-related services within the last 12 months with respect to the subject
company.
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subject company.
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respect to the subject company.
2 Analyst and/or Associate or a member of his/their household has a long position in the securities of this stock.
3 RJL makes a market in the securities of the subject company.
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5 <Name> who is an officer and director of RJL or its affiliates serves as a director of the subject company.
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associated with a site visit by the Analyst and/or Associate.
7 None of the above disclosures apply to this company.
COMPANY SYMBOL EXCHANGE DISCLOSURES
Bankers Petroleum BNK TSX 1a, 1b, 1e
Gran Tierra Energy GTE TSX, AMEX 1c, 1e, 1f
Petromanas Energy Inc. PMI TSXV 1a, 1b, 1e
WesternZagros Resources WZR TSXV 7
RJ Disclosures
Date Price Rating Target
Jun-16-08 $2.12 1 $10.50
Jul-11-08 $1.66 1 $9.90
Jul-31-08 $4.70 1 $10.00
Oct-14-08 $1.10 1 $5.00
Dec-01-08
.99 2 $2.00
Feb-17-09 $1.19 2 $2.50
Mar-02-09 $1.41 2 $2.00
Mar-23-09 $1.80 2 $2.15
Apr-13-09 $1.79 2 $2.50
Jun-01-09 $2.22 2 $2.60
Jun-22-09 $2.05 2 $3.00
Jul-15-09 $1.92 1 $4.00
Aug-18-09 $3.38 1 $6.00
Nov-17-09 $5.10 1 $8.00
Jan-04-10 $6.22 1 $9.00
Jan-13-10 $6.06 1 $10.00
Mar-04-10 $6.92 1 $20.00
BANKERS PETROLEUM | BNK-TSX RATING & TARGET CHANGES
1-STRONG BUY 2-OUTPERFORM 3-MARKET PERFORM
4-UNDERPERFORM 0-UNDER REVIEW
1
2
1

.00
$5.00
$10.00
$15.00
$20.00
$25.00
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Close Target Rating
Date Price Rating Target
Jun-16-08 $6.62 3 $7.00
Jul-30-08 $5.15 2 $6.00
Aug-08-08 $5.44 2 $7.00
Sep-24-08 $4.27 2 $8.00
Oct-14-08 $2.58 1 $5.00
Dec-01-08 $3.33 2 $4.00
Feb-10-09 $3.71 2 $4.50
Mar-02-09 $2.97 2 $4.00
Jun-22-09 $3.89 2 $4.50
Jul-02-09 $4.02 1 $6.50
Dec-18-09 $6.25 1 $7.00
Jan-04-10 $6.00 1 $8.00
Feb-26-10 $5.82 1 $9.00
GRAN TIERRA ENERGY | GTE-TSX RATING & TARGET CHANGES
1-STRONG BUY 2-OUTPERFORM 3-MARKET PERFORM
4-UNDERPERFORM 0-UNDER REVIEW
3
2
1
2
1

.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Close Target Rating
RJ Disclosures
Date Price Rating Target
May-28-10
.40 2 $1.25
PETROMANAS ENERGY INC. | PMI-TSXV RATING & TARGET CHANGES
1-STRONG BUY 2-OUTPERFORM 3-MARKET PERFORM
4-UNDERPERFORM 0-UNDER REVIEW

.00

.10

.20

.30

.40

.50

.60

.70

.80
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Close Target Rating
Date Price Rating Target
Jun-16-08 $3.05 2 $4.50
Oct-14-08
.98 3 $1.00
Nov-10-08
.73 4
.62
Dec-18-08
.56 3
.57
Feb-19-09
.80 4
.57
Mar-10-09
.43 2
.57
Apr-03-09
.61 3
.57
Apr-13-09
.72 4
.60
Apr-24-09
.79 2 $1.50
Jun-05-09 $1.97 3 $1.75
Jun-18-09 $1.75 2 $2.75
Oct-07-09 $1.84 3 $1.85
Oct-30-09 $1.50 4 $1.00
Nov-05-09
.73 4
.15
Mar-22-10
.84 4
.10
WESTERN ZAGROS RESOURCES | WZR-TSXV RATING & TARGET CHANGES
1-STRONG BUY 2-OUTPERFORM 3-MARKET PERFORM
4-UNDERPERFORM 0-UNDER REVIEW
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Nov-07
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Jul-08
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Close Target Rating
RAYMOND JAMES LTD. CANADI A N INST I TUTIONAL EQUITY TEAM WWW.RAYMONDJAMES.CA
EQUITY RESEARCH
HEAD OF EQUITY RESEARCH
Daryl Swetlishoff, CFA 604.659.8246
SENIOR SUPERVISORY ANALYST
Patricia Hernandez, PhD, CFA 604.659.8236
Heather Fennell (Supervisory Analyst) 403.509.0509
C O N S U M E R P R O D U C T S & R E T A I L
CONSUMER PRODUCTS & RETAIL
Kenric Tyghe, MBA 416.777.7188
Sara Kohbodi (Associate) 416.777.4916
E N E R G Y
OI L & GAS SERVICES, HEAD OF ENERGY RESEARCH
Andrew Bradford, CFA 403.509.0503
Nick Heffernan (Associate) 403.509.0511
INTERNATIONAL OI L & GAS
Rafi Khouri, B.Sc, MBA 403.509.0560
Braden Purkis (Associate) 403.509.0534
OI L & GAS ROYALTY TRUSTS / OI L & GAS PRODUCERS
Kristopher Zack, CA, CFA 403.221.0414
Gordon Steppan (Associate) 403.221.0411
OI L SANDS / OI L & GAS PRODUCERS
Justin Bouchard, P.Eng. 403.509.0523
Christopher Cox (Associate) 403.509.0562
OI L & GAS PRODUCERS
Luc Mageau, CFA 403.509.0505
I N D U S T R I A L S P E C I A L S I T U A T I O N S
AEROSPACE & AV IATION / INDUSTRI AL PRODUCTS & SERVICES
HEAD OF INDUSTRIAL RESEARCH
Ben Cherniavsky 604.659.8244
Theoni Pilarinos, CFA (Associate) 604.659.8234
Greg Jackson (Associate) 604.659.8262
INDUSTRIAL PRODUCTS & SERVICES
Frederic Bastien, CFA 604.659.8232
Jamil Murji, CFA (Associate) 604.659.8261
INDUSTRIAL PRODUCTS & SERVICES
Steve Hansen, CMA, CFA 604.659.8208
M I N I N G
BASE METALS & MINERALS, HEAD OF MI NING RESEARCH
Tom Meyer, P.Eng., CFA 416.777.4912
Adam Low, CFA (Associate) 416.777.4943
Miroslav Vukomanovic (Associate) 416.777.7144
GOLDS
Brad Humphrey 416.777.4917
Forbes Gemmell, CFA 416.777.4948
Afjal Mohammad (Associate) 416.777.7084
URANIUM / JUNIOR EXPLORATION
Bart Jaworski, P.Geo. 604.659.8282
David Sadowski (Associate) 604.659.8255
P A P E R & F O R E S T P R O D U C T S
PAPER & FOREST PRODUCTS
Daryl Swetlishoff, CFA 604.659.8246
David Quezada (Associate) 604.659.8257
R E A L E S T A T E
REAL ESTATE & REITS
Mandy Samols, CA, CFA 416.777.7175
Tracy Reynolds (Associate) 416.777.7042
T E C H N O L O G Y
TECHNOLOGY, ALTERNATIVE ENERGY & CLEAN TECH
Steven Li, CFA 416.777.4918
Anthony Jin, MBA, P.Eng (Associate) 416.777.6414
Diane Yu (Associate) 416.777.7150
EQUITY RESEARCH PUBLISHING
ACTING HEAD OF PUBL ISHING
Cynthia Lui 604.659.8210
Ashley Ramsay (Research Editor) 604.659.8226
Christine Marte (Research Publisher) 604.659.8202
Deborah Cheetham (Publishing Assistant) 604.659.8200
Inder Gill (Publishing Assistant) 604.659.8200
INSTITUTIONAL EQUITY SALES
HEAD OF SALES
Mike Westcott 416.777.4935
Michelle Baldry (Marketing Coordinator) 416.777.4951
T O R O N T O (CAN 1.888.601.6105 | USA 1.800.290.4847)
Laura Arrell (U.S. Equities) 416.777.4920
Sean Boyle 416.777.4927
Jeff Carruthers, CFA 416.777.4929
Jon De Vos (London) 0.207.426.5632
Richard Eakins 416.777.4926
Jonathan Greer 416.777.4930
Michael Horowitz 416.777.4946
Aman Jain 416.777.4949
Dave MacLennan 416.777.4934
Robert Mills 416.777.4945
Doug Owen 416.777.4925
Nicole Svec-Griffis, CFA (U.S. Equities) 416.777.4942
Lakshmi Thurai (London) 0.207.426.5626
Neil Weber 416.777.4931
Carmela Avella (Assistant) 416.777.4915
Ornella Burns (Assistant) 416.777.4928
V A N C O U V E R (1.800.667.2899)
Scot Atkinson, CFA 604.659.8225
Doug Bell 604.659.8220
Terri McEwan (Assistant) 604.659.8228
M O N T R E A L (514.350.4450 | 1.866.350.4455)
John Hart 514.350.4462
David Maislin, CFA 514.350.4460
Tanya Hatcher (Assistant) 514.350.4458
INSTITUTIONAL EQUITY TRADING
CO-HEAD OF TRADING
Bob McDonald, CFA 604.659.8222
Andrew Foote, CFA 416.777.4924
T O R O N T O (CANADA 1.888.601.6105 | USA 1.800.290.4847)
Pam Banks 416.777.4923
Anthony Cox 416.777.4922
Ross Davidson 416.777.4981
Oliver Herbst 416.777.4947
Andy Herrmann 416.777.4937
Rebecca Joseph 416.777.4938
Eric Munro 416.777.4983
James Shields 416.777.4941
Bob Standing 416.777.4921
Peter Mason (Assistant) 416.777.7195
V A N C O U V E R (1.800.667.2899)
Nav Cheema 604.659.8224
Fraser Jefferson 604.659.8218
Derek Oram 604.659.8223
M O N T R E A L (514.350.4450 | 1.866.350.4455)
Sebastien Benoit 514.350.4466
Joe Clement 514.350.4470
RETAIL RESEARCH & DISTRIBUTION
Don Ogden, CFA 604.659.8227
Samantha Barrett, CFA 604.659.8235
Arno Richter (Associate) 604.659.8243
Casey Beierle (Assistant) 604.659.8233
INSTITUTIONAL EQUITY OFFICES
Calgary
Suite 2500
707 8th Avenue SW
Calgary, AB T2P 1H5
403.509.0500
Montreal
Suite 1420
1002 Sherbrooke St W
Montreal, PQ H3A 3L6
514.350.4450
Toll Free: 1.866.350.4455
Vancouver
Suite 2200
925 West Georgia Street
Vancouver, BC V6C 3L2
604.659.8200
Toll Free: 1.800.667.2899
Toronto
Suite 5400, Scotia Plaza
40 King Street West
Toronto, ON M5H 3Y2
416.777.4900
Toll Free Canada: 1.888.601.6105
Toll Free USA: 1.800.290.4847
International Headquarters
The Raymond James Financial Center
880 Carillon Parkway
St.Petersburg, FL
USA 33716
727.567.100