Bellatrix Exploration Ltd (Canada) BXEFF

RE:Top Pick

[sumosalar]

Mason Granger, Portfolio Manager, Sentry Investments FOCUS: Oil & Gas Stocks Market Outlook: We believe that share prices should continue to rise in 2014 as uncertainty surrounding infrastructure constraints and crude differentials recedes and investor interest returns to the sector. In particular, we believe that the pricing environment for heavy oil will improve throughout this year with infrastructure improvements, key refinery enhancements and ongoing growth in crude-by-rail as an alternative to pipelines. We also believe that global oil prices are well supported at US$100 per barrel by virtue of the fiscal needs of key oil producing states, with upside to pricing through a combination of limited amount of spare capacity in the global system and significant production that continues to be at risk from disruptive geopolitics. We remain bullish on the prospects for Canadian natural gas in the medium term, as the country edges towards being a significant exporter of liquefied natural gas (LNG) in the coming years. In the short-term, extremely cold weather has had a significant impact on reducing gas inventories and supporting higher prices. Broadly stronger energy commodities prices should also provide an upward bias on capital budgets and provide an improving pricing environment for many services providers