Exploration Aurtois Inc. EXTSF

Turnaound!!

[Tokato]

The fundamentals of EXA has already turned around. Production is now steadily above 3,000 BOEs/d (around 3,200 BOEs/d) and they have drilled some great wells. I think 3,500 BOEs/d exit is a slam dunk. EXA should be 3,500 BOEs/d by May (once the 2 Wabumum wells are put on stream after break-up). So we are only talking about finding enough oil and gas in the second half of 2007 only equal to its declines. The great thing is that EXA's decline profile is lower than normal. That's because a number of past wells are past its major decline. And many of the new prolific wells are being produced at restricted rates - so almost no decline for the first few months and likely only modest declines for some tme after. So fundamentally, EXA should move towards $50,000 BOEs/d (from $35,000 BOEs/d now). Expect the shares to head towards $3.50 by July. Its great seeing lots of volume in EXA's shares lately. Shows that new buyers are sopping up shares being dumped by old shareholders that ust got tired. They will ponder that their tiredness will be ill timed.