SDX ENERGY INC SDRYF

Stocktalk

[retiredcf]

SDX is one of the 24 companies attending this event. GLTA

Okay so have you figured it out yet...is the price of oil this Christmas going to be at $45 a barrel, or $75? Because the markets certainly haven't figured it out yet. After a nice swing up the last couple of months and after a decent run the last two years, we have either had a touch of reality as American production goes ever higher, or, we could be hitting the point where international demand continues to grow and prices as we hit the colder weather times, hit those tastier prices. For those that have never been to an Energy Conference, I suspect a Schachter get-together scheduled at the Telus Convention Centre in Calgary for Saturday, September 29th might be an interesting one. Yes, he is having the gall to charge folks for being there, but then he is attracting 20 plus of what he thinks will be the “better” companies. Might well be fun to attend this session and to hear the stories firsthand, take in the corporate presentations, and even meet with the company executives. We have always enjoyed these kind of get-togethers and it's too bad we have plans to be on the other side of the country, otherwise we definitely would be there. Schachter has a very interesting take on the energy market at this time in that he wouldn't be surprised to see oil hit $60 in the short run (end of August/early September-ish) but then by Christmas, he

thinks we are heading up into the higher levels as once again, international demand kicks in. He is also expecting some much more decent natural gas prices. He suggests that he's picked 20-plus of his favourite companies for the presentations and these are the ones that he thinks have the most leverage for better times...once again, hoping/assuming that he is right in his anticipation for those higher oil prices. We have put a “check mark" beside some of the companies that we already own and like most of the oil and gas stocks, they have had their share of bumps over the last while...one in particular, Painted Pony, has taken care of tax-loss needs for the next 10 or 20 years. But, should those pipelines ever go ahead to the West Coast, this would be one of the big winners. Again, we put a “check mark" beside the companies we already own an interest in, but if you do go to this gathering and if you have never been, give it a consideration because it is a very interesting day spent and to get a feel for the management of a company you've actually put hard earned dollars into, is always either very

comforting...or very concerning. Questions that you have to ask:

1. What do you think about the possibilities for pipelines being able to pick up your product (for that specific company)?

2. What about the prices you are going to receive for that product as we are currently looking at some huge discounts compared to the international prices that we are quoted?
3. What price do you predict for domestic oil and gas prices...and what is your break-even?

IF Shell does announce a go on their LNG project in September as expected/hoped for, this conference would be most timely!