TriOil Resources Ltd TRIAF

RE: Lochend Cardium outperformance

[grinch]

I looked through that CIBC report this evening, nicely summarized AIG and I am in agreement with your analysis, very confusing on the market response.

I can only attribute it to the lack of news with the Q3 press release and rumors taking a life of their own....  
management is in an awkward situation with the first bunch of wells as they are in a non-operated position, meaning lack of control.

When you look at the history of this company you have a new company that was formed from a recapitalization and reorganization of a bankrupt company (One Exploration)and then they bought Canext which was an under performing company as well.  There has never been liquidity with this stock until the last couple weeks.  Is this volume coming from all the small investors of all the historical companies taking money off the table or tax loss selling? 

My 2 cents is the following:

1) This is a resource play that is in its infancy but per their last press release the target zone is hydrocarbon bearing;
2) They are reviewing and trying different completion techniques, this is the key to a successful resource play and they are reviewing all the different options;
3) They have 50 net sections of land, with great vertical well control, TVE has seven net sections of land and its contributing to 64% of their trading value, while TOL is getting zero recognition?

They have drilled their first 100% well and will be completing it using a different process then the non-operated wells.

 I am also interested to see how their slick water completion works as I have heard the restricted PBN well was competed this way.

I think the upside is exponential in this stock and agree with AIG that at $4.50 - $5.00 we are trading at base case value with no upside being recognized for lockend.  I remember the Bakken being in a similar state 5-6 years ago and I think TOL is pretty well positioned to benefit on successful 2011 program.

GLTA