TABLE OF CONTENTS
2
Initiating Coverage
Looking Across the Valley 3
Natural Gas Prices Plumbed New Lows in the Second Quarter… 5
… And Went Lower in the Third Quarter! 8
Initiating Coverage 8
Birchcliff Energy Ltd. - Forging Ahead in the Montney at Pouce Coupe_ 13
Fairborne Energy Ltd. - Opportunistic Equity Issue to Bolster the Balance Sheet 21
Galleon Energy Ltd. - Now to Convert Resources to Reserves 29
Iteration Energy Ltd. - High Op Costs Hinder Cash Flow 37
Progress Energy Resources Corp. - Top Tier Management, Top Tier Multiple 45
Disclosure List 51
Investment Rating Guidelines 52
Risk Qualifier Guidelines 52
Analyst Certification 52
Distribution Policy 52
Disclaimer 52