Canaccord on CPG, ARN, SCS

I sold my Arcan today as detailed earlier at $6.90 to $6.96 but I still have Second Wave (very small amount), Penn West which are known players in Swan Hills.

I also have Petrobank which through Petrobakken has a position in the play, not sure of the size of yet.

"I don't know where the rumours were coming from. Crescent Point has confirmed that it has accumulated over 380 (165 net) sections of highly prospective land in the emerging Beaverhill Lake light oil resource in the Swan Hills area of northern Alberta. The company's entry into this play had been widely rumoured over the past several months but until now the details were slim and the rumours never confirmed by the company. This position in the Beaverhill Lake light oil resource play was build up over the past 18 months through a series of joint ventures, farm-ins and crown land sales. The majority of this land was acquired in a joint venture with private company Coral Hill Energy, while a smaller portion was picked up through a farm-in agreement with Second Wave Petroleum. Crescent Point has spent approximately $70 million to date (including $40 million in 2011) in Swan Hills on land and development costs. Of note, a total of 8.0 (3.0 net) wells have been drilled to date and brought


on production with an average first month rate over 1,000 bopd gross, which is well above the company's internal type curve estimate of 295 bopd. Crescent Point did not provide any further detail on costs, well control or drilling inventory; however, like any new play the company will likely need to complete more drilling to delineate the land and better understand the productivity/variability of the play. Concurrent to this news, Crescent Point also announced the recent acquisition of 8 million common shares of Arcan Resources, which increased its total ownership to 16.75 million shares, or 19% of the company. Canaccord Genuity Oil & Gas Analyst Kyle Preston commented what while this had been widely rumoured over the past several months and therefore does not come as a huge surprise, he nonetheless views it as a positive development for the company. The Beaverhill Lake light-oil resource play is still in the relatively early stages of development; however, he believes there have been enough wells drilled to date to establish it as one of the top light oil plays in Alberta. Preston is not ascribing any value at this time but he does estimate a very preliminary valuation potential of $2.00-8.00 per share. "