Angle Energy Inc ANGZF

3 Reasons to Buy NGL

[retiredcf]

1. Here's a reminder of CIBC's analysis from 21 Mar 12. At the time, the stock was $5.65 and their target was $9.50.

Q4/11 production averaged 12,932 Boe/d, slightly ahead of our 12,879 Boe/d estimate. CFPS was
.33 compared to our estimate of
.29. The variance was due to higher liquids pricing as well as lower operating costs, offset by higher-than-expected royalties.

? Angle has successfully tested two more wells, 14-35 and 13-35, which drilled off a second pad to the southeast of the 02/02-03-32-3W5 and 03- 03 pad wells. 14-35 tested at 485 Boe/d (94% oil), while 13-35 tested 420 Boe/d (93% oil). We view these high oil-weighted results to be top tier.

? Current field production is 16,400 Boe/d (18% oil/condensate, 25% NGLs and 57% gas), which is currently exceeding production guidance of 15,000- 16,000 Boe/d. The higher natural gas weighting is due to lower ethane recovery at the Harmattan gas plant, but is revenue neutral.

? We are very impressed by the company's ability to deliver on Cardium oil results in Harmattan. With continued outperformance, we would not be surprised to see the company revise guidance upward after spring break-up. However, at this time we believe management is being prudent.

2. Irwin Michael was on BNN this morning and recommended NGL as a top pick. Not surprising given his past recommendation.

WATCH	5.600	Mason Granger	Used to own and would revisit on a really durable recovery in natural gas. Weighted about 50-50 natural gas liquids to natural gas. About 17,000 BOE's. Very well-run and excellent track record of exploration and development.	2012-03-29
WEAK BUY	6.000	Robert Lauzon	Always chatter that Pen growth would buy them. Thinks they are an ok stock to own. Thinks they have increased risk because of liquidity. Thinks it will be a plodder here.	2012-03-23
TOP PICK	5.840	Irwin Michael, B.Com, MBA	Could double in next 12 months. Company perceived to be very gassy so not getting multiples it should. Good management. Cheap. He is going to be patient. Trading slightly below net asset value.	2012-03-22

3. Recent Insider Buys - Not huge but always a good sign. GLTA

Apr 16/12	Apr 16/12	Mazuryk, Matthew Thomas	Direct Ownership	Common Shares	10 - Acquisition in the public market	1,000	$4.70
Apr 16/12	Apr 16/12	Mazuryk, Matthew Thomas	Direct Ownership	Common Shares	10 - Acquisition in the public market	1,000	$4.71
Apr 13/12	Apr 13/12	Christie-Burns, Heather Lynn	Direct Ownership	Common Shares	10 - Acquisition in the public market	1,500	$4.75
Apr 13/12	Apr 12/12	Cormack, George Graham	Direct Ownership	Common Shares	10 - Acquisition in the public market	5,000	$4.88
Mar 30/12	Mar 28/12	More, Elizabeth Barr	Direct Ownership	Common Shares	10 - Acquisition in the public market	500	$5.72
Mar 30/12	Mar 28/12	More, Elizabeth Barr	Direct Ownership	Common Shares	10 - Acquisition in the public market	1,000	$5.74
Feb 6/12	Feb 2/12	Roorda, Jacob	Indirect Ownership	Common Shares	15 - Acquisition under a prospectus	10,000	$6.35
Jan 4/12	Dec 31/11	Richardson, Glen Russell	Indirect Ownership	Common Shares	30 - Acquisition under a purchase/ownership plan	1,850	$7.98