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Coal faces bleak future in global warming fight: MIT study
Wednesday, March 14, 2007
WASHINGTON — The coal industry faces a bleak future unless ways are developed on a commercial scale to capture and store carbon dioxide in the campaign against global warming, according to a study released Wednesday.
The report by the Massachusetts Institute of Technology says coal, which accounts for half of U.S. electricity production, will remain the fuel of choice to produce electricity in the United States because it is relatively cheap and abundant.
But if carbon limits are imposed to address climate change, that could change unless the government and industry develop a program to capture and store the tens of millions of tons of carbon dioxide that now spew from coal-burning smokestacks into the atmosphere.
Carbon dioxide is the principal so-called “greenhouse” gas because as it concentrates in the atmosphere it creates a blanket-like effect that many scientists believe is warming the Earth. While carbon dioxide is released in the burning of all fossil fuels, coal produces greater amounts of it because of the fuel's high carbon content.
A central message of the MIT report is that carbon capture from coal burning is technically and economically possible, but that it has yet to be proven on the broad commercial scale that would be needed if limits on carbon emissions are imposed.
The Democratic-controlled U.S. Congress is considering a number of proposals that would impose a cap on greenhouse gas emissions, primarily carbon dioxide, along with various provisions aimed at reducing the economic cost.
“Coal will continue to be used to meet the world's energy needs in significant quantities,” said the MIT report. With carbon capture programs more coal would likely be used in 2050 than is used today but global carbon emissions would likely be only slightly more than today, the study said.
The MIT report said its doubtful that either China or India will impose carbon controls any time soon, although both countries are rapidly expanding coal use in power and industrial plants.
Neither China nor India are likely to take such actions without the United States moving to curtain carbon emissions first, the study said. Eventually, carbon capture from coal burning will be crucial for both China and India if climate change is to be addressed.
And the United States will have to take the lead, the study concluded.
“If the coal industry wants to protect itself from a very bleak future ... they have a great interest in seeing carbon dioxide sequestration practically demonstrated now,” John Deutch, co-chairman of the MIT panel that wrote the coal report, said in an interview.
Mr. Deutch, a former CIA director under former president Bill Clinton and senior official in both the Defence and Energy departments, said the government is not moving fast enough to develop demonstration projects capable of capturing and depositing in deep geological formations as much as a million tons of coal a year.
The report said three or four such demonstrations projects should be developed as soon as possible.
Bush has said carbon capture and sequestration is a top energy priority. The government hopes to have an experimental coal burning power plant called FutureGen built by 2012 capable of capturing and storing underground a million tons of carbon a year.
But the MIT report said more is needed and that the Energy Department's budget for clean coal programs “falls far short of what is required” to ensure coal remains a primary fuel in a carbon-constrained world.
The administration last month asked Congress for nearly $600-million (U.S.) for coal technology research for the next fiscal year, including $79-million for carbon sequestration and $108-million for the next instalment in FutureGen.
The report also urged that government tax breaks, loan guarantees and other assistance be directed only at new coal plants that include carbon capture and sequestration and to programs aimed at retrofitting other plants with such technology.
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Ear on the Street
Algoma Steel (AGA : TSX : $49.75)
Higher steel price
RBC Capital Markets maintains "outperform", 12-month target price is $77.00
Altius Minerals Corp (ALS : TSX : $9.95)
Trading close to the NAV
Haywood Securities maintains "sector outperform", 12-month target price is $15.00
Armtec Infra. Income Fund (ARF.UN : TSX : $16.90)
Q4 in line
BMO Capital Markets maintains "outperform", 12-month target price is $19.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $18.00
TD Newcrest maintains "buy", 12-month target price is raised to $19.50
Alimentation Couche-Tard (ATD.B : TSX : $24.44)
To release Q3 today
Canaccord Adams maintains "buy", 12-month target price is $30.00
BFI Canada Income Fund (BFC.UN : TSX : $27.40)
Impressive Q4 results
Blackmont Capital maintains "buy", 12-month target price is $30.00
BMO Capital Markets maintains "outperform", 12-month target price is $29.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $28.50
Scotia Capital Markets maintains "sector outperform", 12-month target price is $31.50
TD Newcrest maintains "buy", 12-month target price is raised to $32.00
CCS Income Trust (CCR.UN : TSX : $35.85)
Fourth quarter results come in below expectations
CIBC World Markets maintains a "sector perform", target price is $45.00
Raymond James downgrades to "outperform", 6-12 month target price is $43.00
RBC Capital Markets maintains a "sector perform", target price cut to $38.00
TD Newcrest maintains a "buy", 12-month target price is $43.00
CML Healthcare Income Fund (CLC.UN : TSX : $14.26)
Fourth quarter and year-end results expected tomorrow
Raymond James maintains a "outperform", 6-12 month target price is $14.00
Cumberland Resources (CLG : TSX : $8.09 | AMEX : US$6.92)
Recent share price appreciation behind downgrade
BMO Nesbitt Burns downgrades to "market perform", target price not provided
Compton Petroleum (CMT : TSX : $10.99)
Impressive 2006 reserves
GMP Securities maintains a "buy", target price raised to $13.50
Canetic Resources Trust (CNE.UN : TSX : $14.41 | CNE : NYSE : US$12.30)
A "no surprises" quarter
BMO Nesbitt Burns maintains a "outperform", target price is $16.50
Canaccord Adams maintains a "buy", target price is $16.00
Raymond James maintains a "outperform", 6-12 month target price cut to $17.25
RBC Capital Markets maintains a "sector perform", target price raised to $13.50
Scotia Capital Markets maintains a "sector perform", 1-year target price cut to $15.00
TD Newcrest maintains a "hold", 12-month target price is raised to $14.00
Cinch Energy (CNH : TSX : $1.03)
Operational update and revision to estimates
Canaccord Adams maintains a "speculative buy", target price is $2.00
Canadian National Railway (CNR : TSX : $52.10 | CNI : NYSE : US$44.48)
Challenges to overcome in first quarter
BMO Nesbitt Burns maintains a "outperform", target price is $60.00
Canadian Pacific Railway (CP : TSX : $63.50 | NYSE : US$54.17)
Harsh winter weather impacts results
BMO Nesbitt Burns maintains a "outperform", target price is $69.00
RBC Capital Markets maintains a "outperform", 12-month target price is $77.00
Chartwell Seniors Housing REIT (CSH.UN : TSX : $16.44)
Disappointing Q4. Strategic review underway in light of "tax fairness"
BMO Nesbitt Burns maintains a "market perform", target price is $17.00
Canaccord Adams maintains a "hold", target price raised to $15.75
Scotia Capital Markets maintains a "sector perform", 1-year target price raised to $17.00
Coretec (CYY : TSX : $1.44)
Posts solid quarter
GMP Securities maintains a "buy", target price is $2.70
Raymond James maintains a "market perform", 6-12 month target price is $1.50
Canadian Royalties Inc (CZZ : TSX : $3.25)
Management changes seen as a positive
Raymond James maintains a "strong buy", 6-12 month target price is $4.20
Defiant Resources (DFR : TSX : $1.55)
Q4 CFPS higher than expected
Raymond James maintains "strong buy", 6-12 month target price is $3.00
Descartes Systems Group (DSG : TSX : $5.10 | DSGX : NASDAQ : US$4.35)
Weak January U.S. trucking cargo numbers
GMP Securities maintains "buy", 12-month target price is $7.00
Eastern Platinum (ELR : TSX : $2.02)
To acquire all the minority shares of Barplats
Raymond James maintains "strong buy", 6-12 month target price is $2.75
Empire Company (EMP.A : TSX : $43.11)
Q3 preview
Scotia Capital Markets maintains "sector perform", 12-month target price is $44.50
First Capital Realty (FCR : TSX : $28.67)
Solid Q4
BMO Capital Markets maintains "market perform", 12-month target price is raised to $30.00
Canaccord Adams maintains "buy", 12-month target price is raised to $29.75
Desjardins Securities maintains "top pick", 12-month target price is $33.00
RBC Capital Markets maintains "outperform", 12-month target price is $30.00
TD Newcrest downgrades to "hold", 12-month target price is $29.00
Focus Energy Trust (FET.UN : TSX : $16.67)
Q4 basically in line
RBC Capital Markets maintains "sector perform", 12-month target price is $16.50
Futuremed Healthcare (FMD.UN : TSX : $10.30)
Q4 DCPU beats expectations
BMO Capital Markets maintains "market perform", 12-month target price is raised to $10.75
CIBC World Markets maintains a "sector perform", target price raised to $10.75
Sun Gro Horticultural Inc Fd (GRO.UN : TSX : $7.93)
New California Acquisitions
BMO Nesbitt Burns maintains "market perform", 12-month target price is raised to $8.15
InnVest REIT (INN.UN : TSX : $14.44)
Seven hotels acquired in 2006
BMO Nesbitt Burns maintains "outperform", 12-month target price is raised to $16.00
Canaccord Capital maintains "buy", 12-month target price is $16.00
RBC Capital Markets maintains "outperform", 12-month target price is raised to $15.00
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $14.00
TD Newcrest downgrade to "hold", 12-month target price is cut to $14.50
IPSCO Inc. (IPS : TSX : $124.81 | NYSE : US$106.60)
Steel and scrap markets strengthen
RBC Capital Markets rates "outperform", 12-month target price is $113.00
Ivernia Inc. (IVW : TSX : $1.60)
Continued operating improvements
BMO Nesbitt Burns reduces to "market perform", 12-month target price is raised to $2.00
E.D. Smith Income Fund (JAM.UN : TSX : $5.77)
Q4 weaker than expected
BMO Capital Markets maintains "market perform", 12-month target price is raised to $5.50
LAB Research (LRI : TSX : $5.85)
Ramp up in Canadian operations
Desjardins Securities maintains "hold", 12-month target price is $6.50
Magellan Aerospace (MAL : TSX : $2.95)
Headwinds abating
Raymond James maintains "outperform", 12-month target price is $3.50
Newalta Income Fund (NAL.UN : TSX : $25.55)
Decline in drilling activity
RBC Capital Markets rates "sector perform", 12-month target price is $27.00
Northstar Aerospace (NAS : TSX : $4.60)
Results ahead of expectations
CIBC World Markets rates "sector perform", 12-month target price is raised to $5.80
GMP Securities Securities maintains "buy", 12-month target price is $7.30
Neo Material Technologies (NEM : TSX : $3.25)
Stronger than expected margins and pricing
GMP Securities Securities rates "buy", 12-month target price is raised to $4.80
Petrobank Energy and Resources (PBG : TSX : $24.31)
Drilling successes
Haywood Securities rates "sector outperform", 12-month target price is $32.00
Patheon Inc. (PTI : TSX : $4.78)
Signs of improved profitability
CIBC World Markets maintains "sector perform", 12-month target price is $5.00
Desjardins Securities maintains "hold", 12-month target price is $5.75
Scotia Capital Markets maintains "sector underperform", 12-month target price is $4.80
TD Newcrest maintains "hold", 12-month target price is $5.50
Priszm Canadian Income Fund (QSR.UN : TSX : $11.33)
Quebec up, Ontario down
BMO Nesbitt Burns rates "market perform", 12-month target price is $11.50
CIBC World Markets maintains "sector outperform", 12-month target price is $11.75
RBC Capital Markets maintains "sector underperform", 12-month target price is $9.50
Rider Resources Ltd. (RRZ : TSX : $7.32)
Higher finding costs
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.50
Royal Host REIT (RYL.UN : TSX : $7.20)
Fundamentals on the rise
BMO Nesbitt Burns maintains "outperform", 12-month target price is $8.00
Sobeys Inc. (SBY : TSX : $41.98)
Results released Wednesday
Scotia Capital Markets maintains "sector underperform", 12-month target price is $40.00
Spectra Energy Income Fund (SP.UN : TSX : $9.41)
Decline in gas drilling
BMO Nesbitt Burns rates "market perform", 12-month target price is cut to $10.00
CIBC World Markets maintains "sector perform", 12-month target price is $10.50
Stelco Inc. (STE : TSX : $21.80)
Stronger revenue expectations
Scotia Capital Markets rate "sector underperform", 12-month target price is $16.75
Transcontinental Inc. (TCL.A : TSX : $21.53)
No surprises expected
TD Newcrest maintains "hold", 12-month target price is $23.00
Trimac Income Fund (TMA.UN : TSX : $9.00)
Substantially in-line
Desjardins Securities downgrade to "hold", 12-month target price is raised to $9.153
RBC Capital Markets rates "outperform", 12-month target price is $10.00
TD Newcrest downgrade to "hold", 12-month target price is $ 9.00
Canadian Satellite Radio (XSR : TSX : $6.70)
Releases subscriber update
RBC Capital Markets maintains a "sector perform", 1-year target price is $8.50
TD Newcrest downgrades to "reduce", 12-month target price is cut to $6.00
ZCL Composites (ZCL : TSX : $13.90)
Outlook remains positive
Raymond James rates "outperform", 12-month target price is $14.75
No problem!
I had to corrupt this board. :)
Weekly Update March 11, 2007
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The oil & gas sector has performed very poorly this past year as oil stabilized and natural gas prices fell in 1/2 from highs hit last winter. Because of this performace, we've had little interest in the sector until now. In past years we've done very well with these stocks by tracking cashflow mutliples and managing risk by using guidelines on their reserves and debt levels.
During 2006 I found many oil & gas companies took on terribly high levels of debt and were not able to justify these levels with strong reserve or production growth. Yet the cashflow multiples in most cases have remained quite high - primarily because the price of oil has remained high (although gas has suffered significantly). Because of these high cashflow multiples I avoided new oil/gas picks because the risks were too high.
Geocan is our first entry back into the sector. Natural gas is stabilizing again and crude oil prices continue to do very well. Even at $40 or $50 per barrel (currently $60), these companies can make great money. Geocan is trading near the 52 week low (and has good liquidity down here), is one of the few trading with a low cashflow multiple, and after Q1/07, should move production into the 4500 boepd range.
Geocan Energy (GCA.T $1.28)
www.geocan.com
52 week High $2.20 / Low $1.26
The stock always runs the risk of moving a bit lower because that is the current trend. However, the numbers indicate that there is excellent value down here and the best gains will (in theory) be made by fighting this current negative bias towards the sector. In the past I only followed companies with debt equivalent to one year cashflow, but that is very difficult to find right now. And those with better ratios, are also trading at much higher cashflow multiples. If Geocan moves production into the range of 4500 boepd (barrel of oil equivalent per day), they should generate cashflow in the range of $30 million annually or $0.55/share. At $1.30 this is a cashflow multiple of 2.3 - very attractive when 4 or higher is not uncommon.
They have a $31 million capital budget approved for 2007 (detailed below) and an 87% drill success rate this past year. If things go well in 2007, they could hit 5000 boepd. At this level, annual cashflow would move into the range of $35 million or $0.63/share. A realistic multiple would be in the range of 4 times cashflow or approx. $2.50/share. Under this scenario we're targeting a 12 month double from this level. Low compared to what we're normally looking for but Geocan provides less risk than normal and with any oil/gas play, they can hit wells that change fundamentals quickly.
There is decent liquidity near $1.30, the fundamentals are strong, and the chart is very attractive from a risk perspective. Increased activity may spook the sellers at this level but with patience, a person can do quite well with scenarios like this.
Key Fundamentals
Development: target drilling in Q1 could add approx. 500 boepd (8 wells at a cost of $3.5 million)
Exploration: target drilling in Q1 could add approx. 450 boepd (7 wells at a cost of $4.8 million)
Total cost in Q1 = $8.3 million
900 boepd produces approx. $6 million in pure annual cashflow
Existing production approx. 3600 boepd (prior to the above)
Behind pipe at 2006 year end - 300 boepd
2006 est. YE debt $48MM = 1.65 X 2007 Projected cashflow
55.6MM shares basic (62.4MM diluted)
30% + institutionally held
10% + by mgmt & directors
Net undeveloped acres of exploration land - 134,480
current reserves approx. 9 million boe
38% natural gas, 23% light/medium oil and NGL's, and 39% heavy oil
2006 third party assessed $2.37 NAV
$31.5 MM 2007 capital budget funded by cash flow and existing bank facilities
34 wells to be drilled in 2007 split 44% exploration and 56% development - 53% of the wells will target oil and 47% of the wells will target natural gas. High drilling success rate with more than 87% of wells completed
Analyst Coverage (stock is down since all these)
Octagon Capital Corporation - Jeffrey Fiell CFA - Perform (Jan 31/07)
Maison Placements Canada - Josef Schachter CFA - Outperform (Sept 25/06)
Haywood Securities - Fredrick Kozak P.Eng - Perform (Jan 09/07)
Acumen Capital Partners - Rob Moss CFA - Buy (Oct 27/06)
Danny Deadlock
Microcap.com
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email: microcap@telus.net
web: http://www.microcap.com
Have a read here and look around the whole site.
http://www.heinvestors.com/non.html
Let me know what you think.
CORN STRATEGIES
While we would have believed that the rally in corn to a ten year high would have encouraged a shift in planted area of 12-14 million acres to corn, recent trade estimates suggest an increase of only 9 million acres. This could leave the longer term outlook for the corn market quite bullish as the market approaches a key planted acreage report on March 30th. At their recent annual Outlook Forum, the USDA presented a preliminary supply/demand outlook for the 2007/2008 season which pegged planted acreage at 87.0 million acres, while the Food and Agriculture Policy Research Institute (FAPRI) projected planted acreage at 86.7 million acres and the American Farm Bureau Federation at 86.5 million acres. These estimates are up 8.7 million, up 8.4 million and up 8.2 million acres respectively from last year. Reports from seed companies and commodity firms, however, are still in the plus 10 to plus 14 million acre range.
Either way, the key factor for prices for the coming year will be yield, and the market is already sensitive to longer-term weather forecasts which call for a wet spring and a hot and dry summer. In order to get 90 million or so acres planted this spring in the optimal timing window, it will take some good planting weather. In some years, the spring weather can mean a swing of 1-2 million acres either way. To illustrate the extremely bullish setup for the market "if" the planted area increases by just 9 million acres, the enclosed table shows this scenario with a lower, medium and high yield for the coming season. If average yield comes in near 152.5 bushels per acre (compared to 149.1 last year), ending stocks are likely to come in near 615 million bushels, which would amount to a 5% stocks/usage ratio for the season. This matches the lowest in history (1995/96) when corn prices moved to an all-time high of 554 1/2 cents per bushel. A lower yield will result in significant price rationing, as demand numbers will need to fall, while a high yield would result in a stock/usage ratio of just 8.6%, still the 3rd lowest in 33 years. While we believe planted area will be closer to a 12 million acre increase, the exercise illustrates the significant impact that the ethanol sector (at about 27% of total usage) will have on the corn supply.
Open interest fell 104,367 contracts in the 8 trading sessions ending March 6th, as some liquidation was likely during a period of uncertain global demand trends. Brazil officials pegged the new corn crop at 48.75 million tonnes last week as compared with 47.92 million as their previous forecast and 42.5 million tonnes last year. Mexico plans to open a 1.4 million tonne import quota for US yellow corn to be used as animal feed. Weekly US export sales for corn for the week ending February 22nd came in at just 356,600 metric tonnes, which was the lowest weekly total since August of 2005. Cumulative sales, however have reached 66.8% of the USDA forecast for the entire year as compared to 57.8% on average over the last five years.
Suggested Trading Strategies: 1) Buy July corn at 414 1/2 with an objective of 494. Risk the trade to a close under 403 1/2. 2) Buy the July 440/540 bull call spread at 21 cents with an objective of 46 cents. Risk 8 cents from entry. 3) Buy September corn futures and at the same time buy two of the September 380 puts. Use 477 1/2 as upside objective for the futures. On a 40-50 cent break in futures, look to lift at least one of the puts to offset the part of the losses in futures. This should leave the trader in a good position to benefit from what looks to be one of the more volatile spring and summer time frames in the history of the corn market.
CHINA'S COMMODITY CONSUMPTION
China consumes an ever increasing amount of natural resources as they feed their double digit GDP growth. This easily translates into the commodity markets, in which China has become a significant player. In light of the recent troubles in the financial markets, which originated in China, we decided to take a look into the scale of their international trade in selected commodities.
Copper is the best example of China's thirst for commodities. An astounding 27.3 percent of the world's copper production was exported to China in 2005, equating to 2.788 million metric tonnes or 358,031 future contracts. Soybeans and cotton have also been in large demand, as more than 13 percent of the world's production ended up in China in 2006 for each of those commodities. This equates to 228,913 contracts for soybeans and 148,320 for cotton. China also consumes 4.6 percent of the world's daily crude oil output, or about 3,525 contracts per day.
China's raw materials exports on the other hand are relatively insignificant. It is more likely than not that they will become importers of these commodities as well at some point in the near future. China exported 0.6 percent of all corn produced in 2006, which equates to 30,707 future contracts. It was also responsible for 0.5 percent of exports in swine meat (pork) and 0.3 percent in wheat. However, over the past 5 years China on average was a net importer of 604,000 tonnes per year of wheat.
COPPER STRATEGIES
As we suggested in the introduction, the copper market seems to have thrown off the recent liquidative tilt fostered by the equity market with relative ease. However, we doubt that copper prices will be able to rise back above the late February highs in the face of any evidence that Chinese slowing efforts are bearing fruit. Furthermore, it would be equally surprising to see the copper market manage to rise to and above the late February highs in the face of noted and ongoing slowing in the US economy. Therefore, the copper market might not be as much of a hot trade idea as it is a potentially valuable leading indicator for a host of physical commodity markets. Certainly the copper market was partially lifted by short covering off a rather significant net spec short positioning, but it was also clear that the copper market was being lifted by ideas that the Chinese were indeed set to come back into the spot market for new supplies. In fact, last week the copper market managed a rather impressive bounce off its early lows off the idea that Chinese copper concentrate players were buying aggressively in the spot market. Certainly copper prices were given some lift off the fear of some supply threats, and with recent LME daily changes showing a bit of a decline for 2007, the trade is anticipating a renewed level of tightening ahead. However, the prospect of slowing in both the US and China isn't something that traders should discount, and upon a return to the $2.90 level basis the May contract, one might begin to suggest that copper is looking beyond the recent washout in the equity market and is indeed factoring a resurgence of growth. In retrospect, it would appear that the copper market rejects pricing under $2.57 as too cheap for conditions, but it remains to be seen whether or not pricing above $2.90 can be justified. Therefore, traders need to exhibit a bit of patience in trading copper, as buys above $2.6250 might carry too much risk. On the other hand, seeing May copper prices return to the vicinity of $2.90 without totally cleaning up the macroeconomic concern could represent a moderately overdone condition.
SOYBEAN OIL STRATEGIES
If Al Gore can be nominated for a Nobel Peace prize and accept an Oscar, the global warming war may be just beginning, as the politics of a major change in energy usage is well entrenched and burning biofuels appears to be at the forefront of the list of solutions to these problems. Sugar prices soared in 2005 and corn reached a 10-year high in 2006, so it may be safe to say that if the war against global warming and the desire to lower imports of oil from the Middle East stays as a high priority on the political front, a surge in vegetable oil prices may be close at hand. According to the Environmental Protection Agency, burning biodiesel instead of petroleum diesel decreases hydrocarbon emissions by nearly 70% and carbon monoxide and particle emissions by nearly 50%. In the past, the economics of energy use has been the primary driving force of the decision making process, but the war on global warming will become a more significant factor as governments around the world attempt to increase the use of biofuels in their everyday usage.
Europe has been the leader in biodiesel usage, but Brazil, China, India and the US could catch up quickly in the next few years. As soybean oil becomes more and more an energy commodity, price advances could come quickly. While the usage pace for biodiesel in the US has been slower than expected, the longer term demand lift from production around the world could be significant. The enclosed chart shows the US usage of soybean oil for biodiesel production. In 2006, biodiesel production consumed 1.569 billion pounds of soybean oil, and this is expected to grow to near 3.3 billion for the coming year and near 5 billion pounds the following year. If the US were to shift to a goal of a 5% mix of biodiesel and soybean oil were used as a feedstock, it would take 23.4 billion pounds per year of soybean oil as compared with total production near 20 billion pounds per year. We should note that there are just 70 plants in the US, with around 50 larger-scale production facilities under construction. In 2005 there were just 300 retail outlets which provided biodiesel, but this number grew to 950 locations in 2006.
As an example of how quickly the jump in biodiesel usage could impact soybean oil and soybean supply, consider just one company in Brazil. The leader of Brazil's biodiesel industry (Brazil Ecodiesel) plans to produce 1 billion liters by 2010 and export 20%-30% of the total. By the end of 2007, production capacity will be near 800 million liters, and the firm is negotiating to supply biodiesel to European and North American firms. It takes about 1.98 billion pounds of soybean oil to produce 1 billion liters of biodiesel, and it takes about 176 million bushels of soybeans to produce 1.98 billion pounds of oil. At the USDA Outlook Conference last week, the USDA pegged ending stocks for 2007/08 at 2.035 billion. As you can see, the impact of a minor shift in energy usage of biodiesel could have a major impact on production and supply of the feedstock.
Suggested Trading Strategy: Buy December soybean oil at 30.32 with an objective of 35.82. Risk the trade to 29.38. 2) Buy the December soybean oil 32.00 call and sell the December oil 29.00 put for a net premium paid of +90 points. If the market trades up to 33.75 for December oil in the next 100 days, the spread should reach an upside objective of +270 points. Risk 105 points from entry. (Projected option values are based on pricing models and are not guaranteed.)
ENERGY STRATEGIES
In looking ahead to the summer gasoline situation, it might be important to take a quick look back to quantify the fundamental developments that have occurred since last summer's top in prices. In the wake of the 2006 high, it is clear that demand was indeed trimmed and that by last October the US saw its supply of crude oil stocks reach a rather burdensome surplus of 23 million barrels. However, despite the fact that North America saw the warmest early winter in history, US crude oil stocks fell back into a deficit reading by mid December. Since January lows, the oil market still hasn't giving OPEC that much credit for reducing supply. That situation could become increasingly more important in the months ahead, especially if the slowing pattern in the US economy continues to unfold. Given the fundamental sentiment that was in place going into the January lows, one would have expected a massive supply surplus or overhang to have manifested itself in US product stocks in the face of the warm winter start, but that just did not happen. Subsequently, the market has seen a pretty impressive recovery in winter heating demand and has also seen a long pattern of low refinery operating rates. In fact, we think the EIA's recent note that total 2006 US oil use declined but that both gasoline and distillate use managed to post new records is clearly a sign that use for the final energy products remains strong, even if the US refinery effort has once again failed to meet the call. If one looks at the enclosed chart of the current US refinery operating rate and one compares it to the 5 year average, it is clear that refiners are characteristically running lower rates or, as some analysts have suggested, that some refineries have actually pulled off early seasonal maintenance. In looking at comparisons of implied gasoline demand in 2007 versus the prior year and the 5 year average (see enclosed chart), it is also clear that gasoline demand is running moderately above the average and is holding at very lofty levels when one considers that the US economy has supposedly been slowing for the last month and a half.
Global demand for gasoline could also come into play this summer. Despite jitters over a possible slowdown in China's economy, the number of private car owners rose 33.5% in 2006 vs. 2005, and gasoline exports shrank to 2.9% in January from year ago. This raises speculation China will become a net importer of gasoline this year, which could further tighten the global supply outlook. China's gasoline situation is changing very quickly, as prior to last year China was Asia's largest spot gasoline exporter. Therefore, there is certainly justification for higher gasoline prices into the summer.
In the end, seeing refiners running at lower rates, demand running above normal and US gasoline stocks running at a 8.6 million barrel annual deficit would seem to suggest that the energy complex is set to start the summer 2007 gasoline season out on a relatively tight footing. If China becomes a net importer of gasoline this year, that will add a whole new demand dynamic to the equation. Countervailing part of the bullish story in gasoline for the summer of 2007 is the EIA prediction that ethanol supply will be significantly more robust in the coming summer period. In short, we think that the energy complex is set for a bullish bias into the spring and summer of 2007 but that massive gains might not be seen without a fresh and serious global supply setback. In other words, traders should concentrate on buying May and June gasoline on setbacks to consolidation support of 180.00 to 178.00, looking for the market to take out the early March highs of 192.60.
Ear on the Street
Altus Group Income Fund (AIF.UN : TSX : $12.50)
Q4 in line
BMO Capital Markets maintains "outperform", 12-month target price is raised to $12.75
Canaccord Adams maintains "buy", 12-month target price is $13.50
Akita Drilling (AKT.A : TSX : $16.70)
New Street coverage
BMO Capital Markets initiates coverage with a "market perform", 12-month target price is $18.50
Allied Properties REIT (AP.UN : TSX : $22.73)
Solid Q4 and distribution increased by 3.2%
Canaccord Adams maintains "buy", 12-month target price is $25.00
CIBC World Markets maintains "sector outperform", 12-month target price is $26.10
Algonquin Power Income Fund (APF.UN : TSX : $8.82)
Q4 in line
Canaccord Adams maintains "buy", 12-month target price is $10.00
CIBC World Markets maintains "sector perform", 12-month target price is $9.50
Alimentation Couche-Tard (ATD.B : TSX : $24.70)
To report Q3 tomorrow
GMP Securities maintains "hold", 12-month target price is $27.50
TD Newcrest maintains "action list buy", 12-month target price is $33.00
Artis REIT (AX.UN : TSX : $16.30)
New Street coverage
BMO Capital Markets initiates coverage with a "outperform", 12-month target price is $19.00
Builders Energy Services Trust (BET.UN : TSX : $10.28)
Q4 misses
Canaccord Adams maintains "buy", 12-month target price is cut to $12.00
BFI Canada Income Fund (BFC.UN : TSX : $26.40)
Q4 beats expectations
Blackmont Capital rates "buy", 12-month target price is raised to $30.00
RBC Capital Markets maintains "underperform", 12-month target price is not given
Calfrac Well Services (CFW : TSX : $19.00)
New Street coverage
BMO Capital Markets initiates coverage with a "market perform", 12-month target price is $20.00
Crew Energy Inc (CR : TSX : $8.85)
2007 guidance reduced
BMO Capital Markets maintains "outperform", 12-month target price is $12.50
Raymond James maintains "outperform", 6-12 month target price is cut to $16.00
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $12.00
TD Newcrest maintains "buy", 12-month target price is cut to $13.50
Cognos Inc. (CSN : TSX : $47.40 | COGN : NASDAQ : US$40.42)
Poised to benefit from Oracle's acquisition of Hyperion
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to US$48.00
Constellation Software (CSU : TSX : $24.50)
Reaffirms 20% growth outlook
RBC Capital Markets maintains "outperform", 12-month target price is raised to $29.00
TD Newcrest maintains "buy", 12-month target price is raised to $29.00
CSI Wireless (CSY : TSX : $2.20)
Q4 shows signs of improving
Canaccord Adams maintains "buy", 12-month target price is raised to $4.00
GMP Securities maintains "hold", 12-month target price is $2.20
Coast Wholesale Appliances (CWA.UN : TSX : $9.30)
Q4 in line
BMO Capital Markets maintains "market perform", 12-month target price is $7.50
CIBC World Markets maintains "sector perform", 12-month target price is raised to $10.30
Canadian Western Bank (CWB : TSX : $23.97)
Q1 core EPS in line
Blackmont Capital maintains "buy", 12-month target price is $27.00
BMO Capital Markets maintains "market perform", 12-month target price is $27.00
TD Newcrest maintains "hold", 12-month target price is raised to $26.00
Cyries Energy Inc. (CYS : TSX : $10.30)
$12 million flow through financing
GMP Securities maintains "buy", 12-month target price is $14.50
CryoCath Technologies (CYT : TSX : $2.85)
Positive six-month data for AF treatment
Blackmont Capital maintains "buy", 12-month target price is $4.00
The Data Group Income Fund (DGI.UN : TSX : $9.53)
Posts strong quarterly number; issues positive outlook
TD Newcrest maintains a "buy", 12-month target price is raised to $12.00
Eastern Platinum (ELR : TSX : $2.00)
Cleaner structure creates more value
Canaccord Adams maintains a "buy", target price raised to $2.40
Enghouse Systems (ESL : TSX : $7.96)
Disappointing results and challenges remain
TD Newcrest maintains a "hold", 12-month target price is raised to $8.50
Evertz Technologies (ET : TSX : $14.60)
Q3/F07 results exceed expectations
BMO Nesbitt Burns maintains a "outperform", target price raised to $19.00
Raymond James maintains "outperform", 6-12 month target price is raised to $18.00
RBC Capital Markets maintains a "outperform", target price raised to $18.00
Fort Chicago Energy Partners (FCE.UN : TSX : $10.58)
Results buoyed by strong profit sharing at Aux Sable
BMO Nesbitt Burns maintains a "market perform", target price is $11.00
Canaccord Adams upgrades to "hold", target price is $10.25
CIBC World Markets maintains a "sector underperform", target price raised to $9.50
TD Newcrest maintains a "hold", 12-month target price is raised to $10.00
Fairborne Energy Trust (FEL.UN : TSX : $9.61)
Q4 production in line, above average reserve results and guidance update
BMO Nesbitt Burns maintains a "underperform", target price is $9.00
Canaccord Adams maintains a "buy", target price is $12.00
CIBC World Markets maintains a "sector perform", target price is $10.00
Focus Energy Trust (FET.UN : TSX : $16.66)
Q4 results in line, focus continues to appear fully valued
BMO Nesbitt Burns maintains a "market perform", target price is $17.50
Canaccord Adams maintains a "hold", target price is $17.00
CIBC World Markets maintains a "sector perform", target price cut to $18.50
TD Newcrest maintains a "buy", 12-month target price is cut to $18.50
Futuremed Healthcare (FMD.UN : TSX : $10.45)
Impressive fourth quarter results
Blackmont Capital upgrades to "buy", 12-month target price is raised to $11.50
Gammon Lake Resources (GAM : TSX : $19.52 | GRS : AMEX : US$16.69)
The Ocampo project were operating at design throughput rates
BMO Capital Markets maintains "outperform", 12-month target price is raised to $29.00
CGI Group (GIB.A : TSX : $9.94)
Downgrade on stock price rally
BMO Capital Markets downgrades to "market perform", 12-month target price is raised to $11.50
Great Lakes Carbon Inc. Fd (GLC.UN : TSX : $13.40)
Rain to counter bid?
RBC Capital Markets maintains "outperform", 12-month target price is $14.25
Goldcorp Inc. (G : TSX : $29.05 | GG : NYSE : US$24.75)
Q4 negatively impacted by higher expense
Blackmont Capital maintains "buy", 12-month target price is cut to $37.50
Canaccord Adams maintains "buy", 12-month target price is cut to US$35.00
CIBC World Markets maintains "sector outperform", 12-month target price is cut to US$36.00
Raymond James downgrades to "outperform", 6-12 month target price is cut to US$35.00
RBC Capital Markets maintains "outperform", 12-month target price is US$32.00
HudBay Minerals (HBM : TSX : $20.80)
In line year-end results cap successful year
GMP Securities maintains a "focus buy", target price is $35.00
RBC Capital Markets maintains a "outperform", target price cut to $26.00
Husky Injection Molding Sys. (HKY : TSX : $7.37)
Considering sale or merger
BMO Nesbitt Burns maintains a "market perform", target price raised to $8.00
GMP Securities maintains a "hold", target price is $8.00
JumpTV Inc. (JTV : TSX : $7.63)
Shift to ad-supported model sacrifices near-term revenue but should yield superior long-term results
Canaccord Adams maintains a "buy", target price raised to $11.00
Kereco Energy (KCO : TSX : $6.23)
Higher FD&A costs seen in year-end results
BMO Nesbitt Burns maintains a "market perform", target price cut to $7.50
Raymond James maintains "outperform", 6-12 month target price is cut to $10.00
Killam Properties Inc (KMP : TSX : $2.53)
Good end to 2006; Positive outlook going forward
Blackmont Capital maintains a "buy", 12-month target price is cut to $2.95
Canaccord Adams maintains a "buy", target price is $3.10
Liquor Stores Income Fund (LIQ.UN : TSX : $20.40)
2006 a solid year
Raymond James maintains "market perform", 6-12 month target price is $18.00
RBC Capital Markets maintains "outperform", 12-month target price is $23.00
Linamar Corp. (LNR : TSX : $15.24)
Strong SkyJack earnings
BMO Nesbitt Burns maintains "market perform", 12-month target price is raised to $15.00
GMP Securities Securities rates "hold", 12-month target price is raised to $15.50
RBC Capital Markets rates "outperform", 12-month target price is $17.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $47.31)
Growth expected for 2008
BMO Nesbitt Burns upgrade to "outperform", 12-month target price is $60.00
MDS Inc. (MDS : TSX : $21.89 | MDZ : NYSE : US$18.67)
Turnaround underway
CIBC World Markets maintains "sector outperform", 12-month target price is US$22.00
RBC Capital Markets rates "sector perform", 12-month target price is $21.00
TD Newcrest maintains "hold",12-month target price is $ 22.00
MDC Partners Inc. (MDZ.A : TSX : $8.75)
Stronger than expected operating results
TD Newcrest rates "hold",12-month target price is $9.00
Marsulex Inc. (MLX : TSX : $11.20)
Announces quarterly dividend
Blackmont Capital maintains "buy", 12-month target price is raised to $12.00
Metallica Resources (MR : TSX : $5.81)
Mineral reserve update
BMO Nesbitt Burns maintains "market perform", no target price reported
Newalta Income Fund (NAL.UN : TSX : $25.99)
Slowdown in drilling activity
BMO Nesbitt Burns rate "outperform", 12-month target price is $31.00
Canaccord Capital maintains "hold", 12-month target price is cut to $26.50
CIBC World Markets maintains a "sector outperform", target price is $32.00
Northern Orion Resources (NNO : TSX : $4.95)
Earnings lower than expected
BMO Nesbitt Burns maintains "market perform", 12-month target price is US$4.25
Nortel Networks Corp. (NT : TSX : $32.92 | NYSE : US$28.08)
Business transformation plan
TD Newcrest upgrades to "Buy", 12-month target price is raised to US$35.00
NuVista Energy Ltd (NVA : TSX : $12.91)
Announces new acquisition
BMO Nesbitt Burns maintains "market perform", 12-month target price is raised to $14.75
GMP Securities Securities maintains "buy", 12-month target price is $17.00
Peyto Energy Trust (PEY.UN : TSX : $16.42)
Significant inventory of drilling locations
BMO Nesbitt Burns rates "market perform", 12-month target price is $17.25
Haywood Securities rates "sector outperform", 12-month target price is $20.00
Paramount Energy Trust (PMT.UN : TSX : $9.37)
Disappointing results
BMO Nesbitt Burns maintains "market perform", 12-month target price is cut to $12.00
CIBC World Markets rates "sector underperform", 12-month target price is cut to $8.50
TD Newcrest maintains "hold", 12-month target price is cut to $10.50
Primary Energy Recycling (PRI.UN : TSX : $9.50)
Volatility at Harbor Coal continues
RBC Capital Markets rate "sector perform", 12-month target price is $9.75
Pure Energy Services (PSV : TSX : $10.99)
Oilfield services
BMO Nesbitt Burns initiates coverage with "market perform", 12-month target price is $12.50
Provident Energy Trust (PVE.UN : TSX : $12.56)
Better than expected results
BMO Nesbitt Burns upgrades to "market perform", 12-month target price is raised to $12.75
Rockyview Energy (RVE : TSX : $3.01)
Maintain production forecasts
GMP Securities Securities "buy", 12-month target price is $6.25
Sobeys Inc. (SBY : TSX : $42.29)
Results on March 14
TD Newcrest maintains "hold", 12-month target price is $40.00
Stoneham Drilling Trust (SDG.UN : TSX : $17.50)
Growth oriented income trust
BMO Nesbitt Burns rates "outperform", 12-month target price is $20.00
Silver Eagle Mines (SEG : TSX : $1.50)
Underground development drilling yields encouraging results
Blackmont Capital maintains a "speculative buy", 12-month target price is $2.20
Saxon Energy Services (SES : TSX : $3.76)
International drilling contractor
BMO Nesbitt Burns initiates coverage with a "outperform", 12-month target price is $5.00
Strongco Income Fund (SQP.UN : TSX : $14.16)
Strong demand for constuction equipment
BMO Nesbitt Burns rate "market perform", 12-month target price is $13.00
Stelco Inc. (STE : TSX : $22.20)
Q4/06 large loss at EBITDA line
CIBC World Markets rates "sector underperform", 12-month target price is raised to $21.00
TD Newcrest maintains "reduce", 12-month target price is cut to $16.50
Savanna Energy Services (SVY : TSX : $19.49)
New Street coverage
BMO Nesbitt Burns initiates coverage with "market perform", 12-month target price is $21.00
Sunrise Senior Living REIT (SZR.UN : TSX : $17.10)
HCP withdraws offer
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $16.50
Trican Well Service (TCW : TSX : $23.15)
Closing of Liberty acquisition
BMO Nesbitt Burns initiate coverage with "market perform", 12-month target price is $26.00
RBC Capital Markets upgrade to "outperform", 12-month target price is $32.00
Trinidad Energy Services (TDG.UN : TSX : $14.36)
New Street coverage
BMO Nesbitt Burns initiates coverages with "outperform", 12-month target price is $17.00
Total Energy Services (TOT.UN : TSX : $11.27)
New Street coverage
BMO Nesbitt Burns initiate coverage with "market perform", 12-month target price is $12.00
Sustained Growth?
And end up looking like Mary.
An unemployed Queens man allegedly robbed banks to pay for hormonal medication necessary to maintain a “female physique,” police said.
Patrick Smith, 42, of 93-19 Hollis Court was arrested by Fifth Precinct Police Officers David Januszewski and Rita Bopp Carroll as he gazed through the window of a bank on Hempstead Turnpike that he had robbed before, said Robbery Squad Det. Sgt. Gary Schriffen.
Police charged Smith with four counts of third-degree robbery for incidents beginning in February. He got away with about $6,400, Schriffen said.
None of the money was recovered.
Smith wore heavy winter coats during the robberies, police said, but after his arrest it became apparent to officers that he had breasts. “The ensuing investigation revealed that the proceeds were used to maintain the necessary hormonal medication to maintain his female physique,” Schriffen said.
Smith, who is unemployed, told officers he is transsexual, but he has had no surgery to change his gender, police said.
Police said that the first robbery occurred at 2:25 p.m. Feb. 6 at a Citibank at 1060 Hempstead Tpke. Smith entered the bank and handed the teller a hand-written note demanding money, warning that he had a gun and would begin shooting if his demands weren’t met, Schriffen said. He shoved the money in his pockets and fled before officers arrived.
Police said similar scenarios unfolded on Feb. 18 at a Citibank at 925 Hempstead Turnpike, and on Feb. 26 at a Ridgewood Savings Bank at 1010 Hempstead Tpke. on Feb. 26. Detectives realized the suspect had been targeting banks in a small area and circulated pictures taken from the banks’ surveillance cameras throughout the area.
Smith struck the same Citibank at 925 Hempstead Turnpike on March 7, getting away with about $1,800, police said.
Jobs, export surge confirm recovery
HEATHER SCOFFIELD
Saturday, March 10, 2007
A solid jobs report for February and a surge in exports in January confirm the year got off to an energetic start, reversing the slowdown that plagued the Canadian economy for much of last year.
"The trade results are much better than expected, and while some of the improvement is due to lower imports, they still make a solid one-two punch of strength alongside the firmer-than-expected jobs data," said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc. "The Canadian economy is maintaining solid momentum early in 2007."
Growth in the fourth quarter of 2006 measured only 1.4 per cent at annualized rates -- the lowest in three years -- but December showed signs of a quick recovery, and yesterday's reports confirmed the trend.
The unemployment rate dipped slightly, back to a 30-year low of 6.1 per cent in February, Statistics Canada said yesterday, with the economy adding 14,200 new jobs.
Compared with a year earlier, there were 392,000 more people with paid employment, an increase of 2.4 per cent.
Windsor, Ont., and Saguenay, Que., had the highest unemployment rates among the country's cities, at 9.8 per cent, while Calgary and Victoria tied for the lowest rate of 3.1 per cent.
The February increase of 14,200 is moderate, but it comes after a massive job creation surge of almost 90,000 new positions in January -- leading economists to conclude that the strength in the labour market is undeniable.
"The underlying employment picture remains very healthy in Canada with an average of 42,000 net new jobs created in the last six months," says economist David Tulk with Toronto-Dominion Bank.
As has often been the case over the past year, the services sector was responsible for the bulk of the new jobs, adding 48,500 positions, while the manufacturing sector shed 34,700 jobs, mainly in Quebec.
This is likely because chemical manufacturers in Quebec were hit particularly hard by the strike at Canadian National Railway Co., Mr. Tulk said.
However, the manufacturing labour situation has been surprisingly stable for the past six months, after almost two years of decline.
Quebec and Ontario were the primary beneficiaries of new jobs in the services sector, Statscan noted, with thousands of new positions in finance, insurance and real estate.
In February, full-time positions accounted for 10,500 of the new jobs, while part-time accounted for 3,700 positions. For the past year, most of the gains have been in full-time employment, but part-time employment has been picking up strength since October, Statscan said.
The jobs market probably can't sustain the strength of recent months, Mr. Tulk warned. He expects job creation to average between 15,000 and 20,000 net new jobs for the rest of the year.
A revival of Canada's trade was also evident in data released yesterday by Statscan.
Exports hit a record high of $40.8-billion in January, up 0.9 per cent on the month. And imports slowed, down 2.8 per cent to $34.4-billion. On balance, the trade surplus widened considerably, to $6.4-billion from $5-billion.
"It may still be too early to pop out the champagne corks, but [yesterday's] data on Canadian merchandise trade certainly suggest that the fortunes of Canadian exporters are starting to improve," said Marc Lévesque, chief economics strategist at TD Securities Inc.
Strong exports in January followed two previous months of strength, firmly cementing a positive trend, he said. In real terms, factoring out the effect of prices, exports jumped 1.3 per cent in January, making for a 5.6-per-cent gain over the past three months, Mr. Lévesque added.
Sales to the United States rose 0.4 per cent in January, despite declines in automotive and energy exports, while imports from the United States fell 2.9 per cent. As a result, the trade surplus with Canada's main trading partner jumped to $8.7-billion, the highest in the past year.
Ottawa advised to underwrite carbon technology
SHAWN McCARTHY
Saturday, March 10, 2007
OTTAWA — Financing for a CO{-2} pipeline may be politically attractive, but governments would get a better bang for their climate-change-fighting buck by underwriting carbon-capture technology at a planned new coal plant, says one member of a federal-provincial panel set up this week by Prime Minister Stephen Harper.
The panel member, University of Calgary engineer David Keith, added that Alberta's new carbon tax, announced this week, is simply too low to create much incentive for oil companies, utilities and other emitters to adopt expensive new technologies, such as carbon capture and storage.
"These regulations are not remotely commensurate with the magnitude of the problem," said Mr. Keith, a long-time proponent of so-called carbon sequestration as a means to combat climate change. "But you have to start somewhere."
Mr. Harper and Alberta Premier Ed Stelmach made a series of environmental announcements this week. Mr. Stelmach announced that major industrial polluters will be required to cut their carbon dioxide emissions per unit of overall production by 12 per cent by the end of the year, or face a $15-a-tonne tax. The Conservative government is also expected to adopt $15-per-tonne tax for companies that exceed emissions limits, a figure that was first proposed by the former Liberal government.
Environmentalists have complained that Mr. Stelmach's "intensity-based" targets will allow real CO{-2} emissions to soar in the province as a result of economic growth and expansion of the oil sands.
In Alberta alone, coal-fired power plants produced 45 megatonnes of CO{-2} emissions in 2004, while the oil sands projects emitted an estimated 27 megatonnes in 2005, a figure that will grow dramatically in the coming years.
Mr. Keith said penalties would have to be twice as high to have a meaningful impact on emissions.
The federal and provincial leaders also announced the creation of a new task force that will recommend how government should help finance the development of a system that would allow oil producers, utilities and chemical companies to capture carbon dioxide emissions and pipe the gas to aging oil fields to be used for enhanced recovery.
Mr. Stelmach said that at least some of Ottawa's promised $156-million contribution would be used to underwrite the construction of a $1.5-billion pipeline needed to transport the CO{-2} from emitter to end user.
Mr. Keith said the proposed pipeline is designed to allay political concerns about growing CO{-2} emissions from expanding oil sands production, but he said a more cost-effective approach would be to focus on coal-fired utilities.
"While in the long run I am very supportive of a CO{-2} pipeline, it's not clear this is the best way to spend your first $1.5-billion on carbon capture and storage," he said. "It would be more cost effective to focus on the next coal-fired power plant, making it a capture and storage facility."
Calgary-based TransAlta Corp. and Edmonton's Epcor Utilities Inc. announced last month their plan to jointly develop a 450-megawatt, coal-fired power plant at the Keephills 3 power plant about 70 kilometres west of Edmonton.
While environmentalists and political critics have focused on emissions from proposed oil sands expansions, coal-fired power plants in Western Canada represent a far greater source of CO{-2} emissions.
TransAlta's chief executive officer Steve Snyder is chair of the federal-provincial task force, which is expected to recommend funding priorities by November.
Company spokesman Joel Thompson said TransAlta believes in the long-term promise of carbon sequestration. But he said the technology for capturing CO{-2} emissions at coal-fired plants is not sufficiently reliable or cost effective to be used for Keephills 3.
Everyone's on the same wavelength now
GRANT ROBERTSON
Saturday, March 10, 2007
TORONTO — When Jonas Woost took the microphone at a gathering of the Canadian music and broadcasting industry in Toronto this week, the manager of last.fm looked more like a rock star than an industry executive. He practically had his own groupies.
The audience, composed of record label representatives, music fans, broadcasters and a smattering of artists, many at least a decade older than Mr. Woost -- were all ears as he described how the London-based Internet broadcaster is amassing millions of listeners around the world each month.
It's all in the name, Mr. Woost explained. "Last.fm is the last radio station you need."
As he stepped off stage, a small crowd of admirers gathered, some to shake hands, others to lob technical queries about last.fm's music recommendation engine. Others just wanted to say they are fans.
The excitement generated by Mr. Woost's appearance is indicative of a growing momentum in the industry. Without facing regulatory restrictions or a need to fight for space on a fixed radio dial, the Internet may just be the biggest threat to the radio industry since the advent of television -- and the established players, faced with a challenge to their business model, have stood up and taken notice.
Just as telling as Mr. Woost's popularity at the conference is the fact that Internet radio has new enemies -- in particular the U.S. recording industry, which this month proposed aggressive royalties many feel could be the death knell for the industry.
For now, there's no question Web radio is taking off. With the proliferation of WiFi as a catalyst, companies have been quietly pumping millions of dollars into developing new technologies. Some of the industry's key players are upstarts, such as last.fm and Oakland-based Pandora. The bigger sites are better-known Web portals, with Yahoo Launchcast and AOL Music topping the global list. Even they started small, but Yahoo Launchcast now draws enough listeners to equal the largest FM stations combined in a major U.S. city like New York.
"If you look at the past 12-18 months, certainly there has been a proliferation of sites that cater to a personalized music experience . . .," said Andy West, manager of Yahoo Music Canada. "People have finally caught on to that."
Its a strange fate for an industry that has been around for more than a decade and was nearly forgotten after the dot-com bubble burst.
In the mid-1990s, Web entrepreneur Mark Cuban started streaming a Dallas AM radio station signal over the Internet to allow sports fans to follow games from other parts of the country. Web companies liked the idea. Yahoo gave Mr. Cuban and his business partner $6-billion in stock for Broadcast.com, crowning him one of the first Internet broadcasting billionaires.
However, as quickly as Web radio took off, people recognized its limitations. The technology of the day resulted in scratchy sound, and listeners were essentially anchored to their computers. When the tech crash hit, the upstarts saw their values plummet. In 2002, Yahoo bought another Web streaming company, Launchcast, for a paltry $8-million.
In the years since, remarkable growth in bandwidth and technology has transformed the industry. Broadband has allowed companies to stream better-quality music files, while music recommendation engines (which stream songs based on a mix of the listener's own picks and suggestions from other users), pioneered by the likes of Pandora, have distinguished the industry from traditional radio. The proof is in the numbers: Yahoo's music service has amassed 3.5 million unique users each month, while smaller operations such as Chicago-based AccuRadio, which started with a few computers and a stack of CDs, claims one million visitors a month.
"Pandora or last.fm, any broadcaster could have built that a couple of years ago, or acquired either of them for the price of a tiny little AM radio station in a small U.S. market," said Kurt Hanson, AccuRadio's CEO. "Some day, a few years from now, the biggest brand of Internet-delivered radio in Canada will have an audience size bigger than all the radio stations in Edmonton or Toronto put together, assuming that somebody establishes a leading brand."
Major hurdles still exist. For instance, despite the industry's huge technological advances, it is still essentially music played through a computer. While companies like AOL, Yahoo and others have been successful at targeting the so-called at-work audience, the industry has yet to encroach on the radio's traditional sweet spot: the car.
If mass wireless Internet access emerges in major cities across the country, it could be a watershed moment for the industry. Portable Internet radio would be available via everything from cellphones to dashboards, attracting more advertisers. As it stands, the advertising industry for Web radio is estimated to be roughly $500-million (U.S.) for North America, but at least 80 per cent of that comes from ads on websites of AM and FM stations. Commercial revenue from music streaming makes up less than one-fifth of that amount.
The biggest hurdle of all could be the looming battle over royalties. "The end-game is that unless the royalties change, webcasting is pretty much done in the U.S. Kaput," Mr. Cuban said. "That's a shame because streaming music to the office is a better opportunity than video. People can -- and will -- listen to music at work."
The Incumbents: Slow and steady wins the race
When Canadian radio giant Standard Broadcasting Corp. Ltd. announced last month that it was negotiating a sale to Astral Media Inc., Standard chief executive officer Gary Slaight cautioned there was still much talking to be done. He didn't go into detail, but those close to the deal suggested the inclusion of Standard's Internet radio operation, Iceberg Radio, was among the points still being discussed.
The fact that Iceberg would play a key role in the talks should come as no surprise: Standard's on-line music operation is the largest of its kind in Canada.
As new-generation Internet radio operations grab the spotlight, Standard and other incumbent radio broadcasters are gearing their strategies toward future expansion, rather than departing from traditional radio. Until ad revenue picks up, the AM and FM players aren't chasing Web audiences as aggressively as the smaller upstarts.
"This is the time to position yourself. . . . But you are still selling something that a lot of people don't understand," said Jean-Marie Heimrath, president of Standard Interactive. "The danger is people who start looking too far out. In the mean time, we need to generate the revenues just to keep this afloat."
Iceberg's tailored music channels draw 250,000 unique visitors a month. When Standard's streaming feed of AM and FM radio stations across the country are added to the mix, that number jumps into the millions, he said.
Rival Corus Entertainment Inc. has also opted for a low-key Web approach. John Hayes, president of Corus Radio, said the company derives only 2 per cent of its radio revenue, or $5-million, from the streaming of its stations.
Mr. Hayes said the company's strategy is to pursue its most reliable income streams, rather than making too big of a gamble on the Internet when royalty battles raging in the United States could hinder future earnings. "We've explored, we've invaded and we've colonized the Internet," Mr. Hayes said. "But the massive bulk of our revenue is going to come from traditional radio stations."
The Innovators: Betting on the wireless revolution
In the late 1990s, Kurt Hanson was the author of a radio industry newsletter aimed at teaching stations how to make the jump from the AM and FM dials to the Internet. He soon tired of writing about it and figured, why not do it himself?
With little more than a stack of CDs and a few computers, Chicago-based AccuRadio was born. It offers more than 300 channels tailored to specific tastes, and has grown to house six full-time and six part-time employees, and a staggering number of listeners considering its size -- roughly one million a month.
Its strategy is to build a brand big enough to attract even more listeners once mass wireless broadband makes Internet access in cars a standard option, and portable devices such as cellphones can double as mini Web portals. "Where you see a GPS [global positioning system] display in cars today is the dashboard real estate that will eventually include the interface to the Web," Mr. Hanson said.
However, young companies carry the extra burden of contending with legal battles over royalties. New rates approved in the United States last week, which would force services to pay a fraction of a cent for each song they play, will put most upstarts out of business, Mr. Hanson says. The matter looks destined to be settled by Congress.
Oakland-based Pandora, largely recognized as one of the original innovators in next-generation Web radio, will face similar challenges. Presently, the company requires listeners to enter a U.S. zip code to log onto the service, which helps it abide by that country's royalty restrictions. Though Pandora has six million registered users, chief executive officer Joe Kennedy knows the vast majority of those who enter the zip code 90210 -- and there are thousands -- don't actually live in Beverly Hills, suggesting they're logging on from countries such as Canada and elsewhere.
The music industry may be forced to develop a global system of compensation, Mr. Kennedy said. "I think in 10 years, Pandora will be listened to in the car, while you're jogging . . . and wherever else people listen to music," he said. "And that will be following the growth of wireless broadband to ubiquitous form."
The New Titans: Looking to bolster the bottom line
Terry Semel's goal when he took over as chief executive officer of Yahoo Inc. in 2001 was to make the Internet more entertaining. A year later, he pulled the trigger on an acquisition that would push Yahoo to the top of the Internet radio pile.
Since buying Launchcast in 2002, Yahoo has emerged as one of the new titans of Internet audio streaming, with rival AOL in the No. 2 spot, and Clear Channel Communications, which owns 1,200 radio stations across the United States, the third-biggest contender.
Unlike standalone companies which are positioning themselves for broadband expansion, Yahoo and AOL have adopted music to bolster their Web community numbers and ad revenue; The longer listeners surf their sites, the more ad dollars can be generated.
"We're in an era of the industry that is in its infancy, and with that there are endless possibilities," said Andy West, manager of Yahoo Music Canada.
Major Web radio players are so far doing little to market their music services, compared to traditional radio.
Instead they are relying on their main sites, such as e-mail and news, to draw people in.
"We have done some marketing, but we're really relying on traffic through the portal," said Rod Lewis, product director for AOL Canada.
AOL created its streaming music site a few years ago, and added a Canadian service in November.
While Yahoo and AOL are now aggressively expanding into streaming music, the industry largely went underground after the tech bubble burst, mostly due to concerns about licensing music, Mr. Lewis said.
Attitudes have changed rapidly in the past two years.
Companies now see themselves as radio brands of the future, when people will wake up to personalized Web channels, rather than the local morning show.
"The more established guys like Clear Channel realized it actually augments their business, it doesn't threaten them. So it's created a mix," he said.
The growth is artifically inflated!
B.C. border mine hits U.S. challenge
Sunday, March 11, 2007
HELENA, Mont. — A coal mine proposed in British Columbia and fought in Montana as an environmental threat that could extend south of the border is being challenged by the U.S. administration.
The project that Cline Mining Co. wants to develop just north of Glacier National Park could lead to environmental harm in the United States, the U.S. State Department said in a letter to the B.C. government.
Montana officials have contended the open-pit mine stands to jeopardize water quality in the trans-boundary Flathead area. Besides Glacier, that area includes sprawling Flathead Lake and other waters popular for recreation. The Flathead River system spans the international border and the north fork of the river is Glacier's western boundary.
The Flathead basin is “an area of unique and internationally recognized environmental importance,” Edward Alex Lee, Canadian affairs director in the State Department, said in the Feb. 23 letter.
He said the mine could cause “significant adverse environmental effects” in the United States.
Kate Thompson, spokeswoman for the British Columbia Ministry of Environment, did not comment immediately Saturday. Ms. Thompson said she intends to discuss the letter with Garry Alexander, the provincial official to whom it was addressed.
Efforts to reach Cline for comment Saturday were unsuccessful.
In a weekend statement, U.S. Senator Max Baucus, a Montana Democrat, said he is “glad federal officials are finally engaging — in a big way — to help us stop this mine.”
“Montanans are rightfully worried that mining in British Columbia could have devastating consequences to fish, wildlife and our growing recreation industry in the Flathead.”
Although the State Department's letter is encouraging, Mr. Baucus said, he still is requesting the department call for an investigation by the International Joint Commission, a Canada-U.S. panel charged with preventing and resolving disputes under a 1909 water treaty.
In 2005, British Columbia gave Cline a permit for exploratory work to determine whether the coal mine should be developed. Less than a year earlier, a proposal for another mine just north of Glacier was scrapped after Montana raised concerns about potential harm to water downstream.
In the 1980s, a proposal for coal mining north of Glacier ended after the International Joint Commission initiated an assessment of the mine's potential effect on Flathead water and fish. The commission found the project likely to violate the water treaty.
Montana Governor Brian Schweitzer said this winter federal intervention in the latest border-mine dispute likely would be necessary, because it appeared efforts toward collaboration by the state and province were not succeeding.
Supported Growth.
More Growth.
Voices of Iraq: Iraq-Currency
كتب: saleem في يوم الأحد, 11 مارس, 2007 - 06:18 PM BT
Iraq-Currency
Demand for dollar down as new policy expected in Central Bank auction
By Dergham Mohamed Ali
Baghdad, March 11, (VOI) – Demand for the dollar was down in the Iraqi Central Bank’s daily auction on Sunday, reaching $45.395 million, compared with $54.145 million on Thursday, amid expectation of a new policy to sell dollars.
In its daily statement, the bank said it had covered all bids, which included $8.845 million in cash and $36.550 million in foreign transfers, at an exchange rate of 1,279 dinars per dollar, unchanged from Thursday.
None of the 10 banks that participated in Sunday's auction offered to sell dollars.
Abdul-Razzaq al-Abaiji, an economist, told VOI "the decline in today's demand for the dollar was due to the expectation that a new policy will be adopted by the Central Bank to raise the dollar exchange rate in upcoming sessions."
The Iraqi Central Bank runs a daily auction from Sunday to Thursday
http://www.aswataliraq.info/modules.php?op=modload&name=News&file=article&sid=39177&...
ESO Contracts 100 Hole Drill Program for Cluff Lake Uranium Properties
ESO Uranium Corporation (ESO: TSX-V), the Company, has contracted Derex Drilling Services Ltd of Armstrong BC, to carry out a program designed to test near surface targets with reverse circulation and/or percussion drilling on the optioned properties of Hathor Exploration Inc (HAT.TSX-V) and International KRL Resources Corporation (IRK.TSX-V). Approximately 10,000 meters of drilling in 100 holes is planned for the 2007 program on the Cluff Lake properties, with a budgeted cost of over $1,500,000. The claims adjoin the Cluff Lake mining lease of Areva, the world's largest integrated uranium company and successor company to the former mine operators.
The Cluff Lake mines, mostly shallow open pit operations, produced 63 million pounds of uranium oxide with an average grade of 0.93% and significant gold values. The geological and geophysical signatures of the Cluff Lake host rocks extend onto these adjacent claims. Historical work on the Bridle Lake Zone, located 2km north of the Cluff Lake Mine on the Hathor option, included two percussion drill holes completed by the mine operator, AMOK (MOKTA), in 1979. These holes intersected 0.112% uranium oxide over 1.5 meters from 17.2 to 18.7 meters (CAR 316A) and 0.12% uranium oxide over 0.4 meters from 52.6 to 53 meters (CAR 278).
In 2006, ground electromagnetic grids were surveyed on the Bridle Lake Zone by P. Walcott and Associates to define further the several conductors indicated by an earlier 2006 airborne Megatem survey commissioned by ESO. These conductors were located immediately up-ice from a radioactive boulder field reported by AMOK Ltee to have values up to 0.85% uranium oxide. Radon surveys by ESO have identified two areas of strongly anomalous radon gas in soils, close to the conductors. One of the ESO anomalies correlates with an anomaly reported by AMOK, the other was in an area previously unsurveyed. Radon gas, a product of the radioactive decay of uranium, is a measure of the presence of uranium at depth in the bedrock.
An additional priority target area for drilling is located on the Int.KRL option that flanks the east side of the Cluff Mine lease. It includes a radioactive boulder field with values up to 16.9% uranium oxide and 2.9 g/t gold reported in assessment filings of AMOK. The boulder field is close to several conductors indicated by airborne and ground electromagnetic surveys carried out by ESO in 2006.
For reference, the current spot price of uranium is US$85 per pound of U3O8; an assay reported as 1.0% of U3O8 is equal to 20 pounds of uranium oxide per short ton - the conversion of percent metal or metal oxide from percent to pounds per short ton is done by multiplying the percent value by 20.
On behalf of the Board of Directors of ESO Uranium Corp.
"Ben Ainsworth"
Vice President, Exploration
For corporate communications please contact:
Tom Corcoran or Bob Meister
ESO Uranium Corp.
Vancouver, BC
Phone: (604) 629-0293
Email: info@esouranium.com
RUNNING FOX RESOURCES -- URANIUM, GOLD
AND GROWING CASH FLOW FROM OILFIELD SECTOR
Running Fox Resource Corp. (TSX-V: RUN; OTC: RFXRF, Frankfurt: C8Q) is a Canadian small-cap company building three active divisions (plans include spinning off new pubcos):
1. Oil and Natural Gas Exploration and Production;
2. Energy Sector Oilfield Services, Construction and Technology; and
3. Mineral Exploration: Uranium and an Advanced High-Grade Gold Project.
Running Fox first nine months consolidated revenues were $5.150 Million.
More cash-flowing acquisitions being reviewed. Some recent news:
Mar.06/07: Acquires another Oilfield Company with $3.5 Million Past Year Revenue
Running Fox Resource Corp. has completed the acquisition of 100% of a private oilfield services company that will augment and expand Running Fox's Oilfield Services and Technology Division, previously announced on February 8, 2007. The acquired company now operates as a subsidiary of Running Fox and had past year revenues of approx. $3.5 Million, with approx. $1.1 Million EBITDA, excluding one time bonus.
Feb. 12/07: Running Fox: Acquires Four Athabasca Uranium Prospects, Previous Drilling Up To 0.42% U3O8 Over 5 Feet
Running Fox has entered into an agreement to acquire four uranium prospects all located in the Athabasca Uranium District in Northern Saskatchewan, Canada. The four prospects have been entirely encompassed by a 100,000 acre exploration permit. The project area is northwest of Uranium City, Saskatchewan, and about 40 km due north of the Cameco Corporation owned /operated Maurice Bay Uranium Deposit.
The properties were explored by uranium companies in the 1960's and 1970's, with many uranium indicators and uranium occurrences present, with numerous significant chip and grab samples, and up to 15,000 c.p.s. radioactivity readings, all leading to more advanced exploration, including trenching and diamond drilling.
Previous diamond drilling on the prospects encountered significant uranium grades of up to 0.42% U3O8 over 5 feet, and previous trenching grades up to 0.50% U3O8 over 3.3 feet.
The Fox is also tracking down advanced U.S. Uranium projects to be announced.
Company Summary:
Running Fox is a Canadian small cap energy company producing and drilling for oil and natural gas in Alberta. It owns 100% of Claymore Field Services, operating a full service oilfield service company for oilfield development, gas plants, pipelines etc . It also owns 50% of a high-grade gold project in British Columbia, and very prospective Canadian uranium projects.
Cash Flow: Current revenue is produced from natural gas production, fluctuating with natural gas prices and from Claymore subsidiary. We are also working on new producing acquisitions. Combining current natural gas sales and its energy sector field service revenues, Running Fox consolidated gross revenues are anticipated to grow each month, with significant profit margins, all prior to new wells being brought on stream and prior to planned organic growth. Combined first nine month revenues were $5.15 Million, with net income for first 9 months of $884,000, prior to acquisition adjustment.
Claymore Oil Field Service: The Company owns a 100% interest in Claymore Field Services Ltd.. Through this subsidiary, Running Fox can effectively carry out its provision of oilfield development, gas pipelines, tie-in, facilities construction, and servicing of natural gas wells in addition to the construction of field locations, gas plants, oil and gas battery facilities, etc, and to add revenues to Running Fox by contracting out the same services to other energy producers. Claymore offers a full range of oilfield and oil/gas well services Visit www.foxgold.ca for further information on Claymore. More oilfield services acquisitions in progress.
High-Grade Gold Development: Brett Gold Project, Okanagan Valley, British Columbia 50% owned Brett Gold Project, located in the Okanagan in Southwest BC. Work this season should include confirmatory drilling to follow-up on previous drillhole # RC93-19, which returned a significant intersection of 16.76 metres grading 35.79 grams Au/tonne (approx 55 feet of 1.045 oz Au/ton) including 3.048 metres grading 57.88 grams Au/tonne (1.69 oz Au/ton) and 4.57 metres grading 107.88 grams Au/tonne (3.15 oz Au/ton) within the main shear zone. (see 43-101 Technical and Brett Gold Assessment Reports available at Running Fox website, www.foxgold.ca or on www.sedar.com.)
Complete maps, geochem, and drilling history are available for review/download on the website. The project has significant early stage block calculations on a small portion of one shear zone -- and there are many shear/fault zones, running under undrilled geochem zones with good gold values over large areas, see geochem in Assessment Report. One drill intercept in 2004 was a 4.3 foot intercept that assayed 5.1 ounces gold, yes that's ounces. With gold prices rising, the high-grade Brett Gold Project offers significant upside. Industry veterans will be taking notice of the project as the high-grade gold project consolidation in the industry continues. Re the early block calculations for the Brett Gold Project, that is covering a small portion of one shear, and there are about 12 known shears with good gold geochem above. The NW shears are also cutting across NE trending shears, and at one of these intersections was drilled a 5.1 ounce intercept over 4.3 feet. Previous drill intercepts have also returned very high values, including 50 feet of 1 ounce gold. The early block calculations do not include many of these high-grade intercepts as more infill drilling is needed to include them in a calculation. See the Top 40 Drill Results on the Brett Gold Project tab on the website.
Also review the brief 3D geological movie on the website. (It may take a few minutes to load).
Portfolio Building Growth Stock: While building cash flow, Running Fox is also well-leveraged to natural gas prices and to the price of gold. Additionally the recent uranium project acquisitions provide upside to that important commodity. More uranium projects are being reviewed and further acquisitions and long-term cash flow developments will be announced in due course. (Plans include spinning off new pubcos.)
Visit the Running Fox website (updating in progress) at www.foxgold.ca.
Shares Outstanding 34 Million, Fully Reporting in Canada, Audited Financials on www.sedar.com.
(Signed) "Steven Schurman"
Steven Schurman, CEO, US Professional Geologist has reviewed the technical information in this update.
FOR FURTHER INFORMATION:
Phone: 403 742-0500
Email: info@foxgold.ca
Website: www.foxgold.ca
BREAKTHROUGH MARKETING AGREEMENT ANNOUNCED BY MLS
Vancouver-based Mobile Lottery Solutions (TSX-V: MLS) today announced a major marketing agreement which gives MLS top level access to a number of international marketing organizations and a group of highly experienced and recognized marketing and media professionals.
The marketing group, Inception Ventures Inc., specializes in the creation, development and marketing of new media content, products and services that are designed to leverage the MLS patent and platform, so as to enhance and expand traditional corporate and brand marketing efforts.
Frank Palmer, Chairman & CEO of DDB Canada, who is also Chairman of Inception, stated, "We believe that MLS offers a unique new media product and delivery package, supported by a very strong U.S. patent, (Canadian patent pending), which targeted North American brands will find very attractive."
Individual members of the Inception group, in association with DDB Worldwide, Zygo Strategies and Insight Sports, are experienced professionals in their respective fields and offer proven expertise in the areas of marketing, advertising and communications. Brief Inception member backgrounds are included with this release.
In announcing the agreement, MLS Chairman & CEO Bill McKay, said, "Our marketing agreement with Inception Ventures is a very significant advance in this young company's growth. It affords MLS a direct connection to the imagination, creativity and top level access that the Inception members can deliver. The relationship really enhances, in a major way, our MLS team and our powerful U.S. patent. We're just delighted and look forward to our first major sales contract in the very near future."
Inception Ventures group members include:
Frank Palmer is Chairman & CEO of DDB Canada and widely regarded as the one of the icons of Canadian advertising. He has been active in the industry for the past 35 years, originally as the founder and CEO of Palmer Jarvis and over the past decade following P-J's merger with DDB Worldwide. His vision and commitment to creative advertising have contributed significantly to the consistent recognition of DDB as Canada's top marketing communications agency network as evidenced by its being named Agency of the Year more times than any other agency in the country.
He is active in the development of future DDB business opportunities with existing and new clients and oversees the agency's overall direction and creative culture. He is also active with a number of national industry organizations and associations.
Kevin Albrecht is President & CEO of Insight Sports Ltd., creators and distributors of sports and entertainment content across multiple platforms, including broadcast television, DVD, on-line, mobile, in-arena and video on-demand. He recently completed a 16 year career at IMG, most recently as Head of Global Business Development and a member of IMG's new media team.
Named by the Globe & Mail as one of Canada's top 3 most influential people in sports, he has managed the careers of superstar athletes such as Wayne Gretzky, Mike Weir and Kurt Browning, and developed event properties such as Stars On Ice and golf's Skins Game into powerful sports brands. He is a founding board member of Right To Play and is also on the Executive Committee of the FIFA World Youth Championships to be held in Canada in 2007.
Steve Clark is President of Clark Group Inc. and has over 35 years experience with a number of leading international developers and marketers of commercial entertainment products and services. Before starting Clark Group in 1995, he worked for United Airlines, Economic Research Associates and the Walt Disney Company. He was a founding partner of Management Resources, a management and marketing organization whose clients, over 15 years, included two Olympic Games, three World Expositions and several hundred corporations including Time Warner, Disney, Universal Studios, Harrah's, IGT, General Motors, Hilton Hotel Corp. and numerous entrepreneurs.
lark Group is California based and serves a select client base dedicated to expanding and marketing their branded products and services domestically and internationally.
Hugh Ruthven is President of Zygo Strategies. He has spent the past 20 years in senior management roles with DDB Canada and McDonalds, working initially the account side with DDB and then becoming Advertising Manager and Director of Marketing for McDonalds. Rejoining the agency, he was appointed Executive Vice president & Managing Director of DDB during a period in which DDB was recognized as Canada's most creative agency for six consecutive years.
Zygo Strategies is focused on seeking out and developing unique business and new media opportunities for DDB and its parent, Omnicom Group of New York. Zygo is involved in the recognition, development, coaching, brand identity and packaging of intellectual properties, leveraging the DDB worldwide creative resources and contact network.
Robin Lecky is Managing Partner of Inception Ventures. He is a marketing, media and communications specialist with extensive experience in the production and event industries in North America and abroad. Over the past three decades he has served as Executive Producer of major film and live entertainment productions for four World Expositions, an Olympic Games, a number of renowned public institutions, including the American Museum of Natural History and the Smithsonian Institution, plus numerous internationally recognized themed attractions, events and corporations.
His background also includes senior management and creative positions in the advertising industry in the US and Canada and in the media industry as a Contributing Editor of Canadian Business Magazine. He was also a founding Director of City TV, Vancouver.
Aaron Fader is President of Inception Ventures and a skilled business entrepreneur, manager and administrator. He has directed the successful start-up and growth of a number of companies and has served as an officer and director of both private and public corporations and has held senior executive positions in a number of successful business ventures, two of which he created and operated. As well, he successfully negotiated and completed the sale of one company to a major US manufacturer.
He has well developed and proven skills in all areas of corporate management and administration and has been actively involved in new product design, manufacturing and marketing. He also has broad experience in the fields of product patents, intellectual property issues and IP licensing.
About MLS:
Mobile Lottery Solutions is a leading new media applications developer that markets patent-protected gaming solutions to regulated lotteries, consumer brands, gaming operators and sports and entertainment organizations throughout North America.
Respectfully submitted on behalf of the Company,
Wm R. McKay, P.Eng.
________________________________
Chairman of the Board & CEO
For further information contact:
Catherine Milaire
Mobile Lottery Solutions Inc.
683 Millbank Road, Vancouver BC V5Z 4B7 Canada
Phone: (604) 606-2032
Fax: (604) 606-2040
Email: investorinfo@mobilelottery.com
Website: http://www.mobilelottery.com
For further information contact:
Jason Sharla
Insight Financial Marketing Network
Suite 333 - 555 6th Street,
New Westminister, BC V3L 5H1 Canada
Tel 866-528-9848
Fax 604-528-9897
E-mail: jsharda@insightfmn.com
Website: http://insightfmn.com
Well if they listed in the ISX it sure would give credibility to Iraq.
From Sunday afternoon to Monday afternoon we expect : 50+ mm of rain.
Just pissin' out here.
Some of the trees are getting leaves.
REFILE-UPDATE 1-Halliburton eyes Mideast listing, eastern growth
Updated: 1 hour, 4 minutes ago
MANAMA - U.S. oilfield service giant Halliburton is considering listing its shares on one of the Middle East bourses as it looks at growth potential in the eastern hemisphere, the firm's chief executive said on Sunday.
"One of the things that we would like to pursue... is a listing of our shares in the Middle East," David Lesar said on the sidelines of an energy event in Bahrain. Halliburton has not yet decided in which country it would list its shares.
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"At this point in time we clearly see there are greater opportunities in the eastern hemisphere than the western hemisphere," he told reporters.
Halliburton would spend a large part of its $1.4 billion investment budget for the year in the Middle East, he said.
Oil and gas service companies have hiked prices for their services over the past two years as the energy sector strains to bring on line enough capacity to meet rapidly rising demand.
Many of the new supply projects are in the oil producing countries of the Middle East, while Asia accounts for most of the rising demand.
In contrast, a slide in natural gas prices in the United States has prompted investor concern that oil and gas companies might cut back on spending in North America.
Halliburton has long been involved in the Middle East energy sector.
KBR Inc., the engineering and military-services contractor unit that Halliburton recently spun off, is the Pentagon's largest contractor in Iraq. The company has faced several investigations into alleged overbilling there, as well as for its links to Iran, where U.S. companies are forbidden from operating.
U.S. Vice President Dick Cheney was head of the company from 1995-2000.
CEO MOVES TO DUBAI
Lesar said he would move his office to Dubai as the company focused on the region for future growth.
Halliburton's global headquarters would remain in Houston, another company executive said.
"My office will be in Dubai and I will run our entire worldwide operations from that office," Lesar said. "Dubai is a great business centre."
Lesar said he expected the price of oil to stay above $40 a barrel, providing good conditions for future investment in the oil and gas industry.
Not good!
It's gettin' time to buy back in here.
Decision to Allow Non-Iraqis to Invest in Iraqi Companies Welcomed
Iraqi Stock Exchange executive director Taha Ahmad Abdul Salam has welcomed the decision by the Council of Ministers to allow non-Iraqis to invest in Iraqi companies.
As a result, the stock exchange has witnessed higher prices in stocks in the banking, investment, industrial, and services sectors.
Source: Al-Hayat, London, March 9, 2007
US commander strolls streets of contested city, eating ice cream and talking progress
The Associated PressPublished: March 10, 2007
HIT, Iraq: The top U.S. commander in Iraq strolled through the streets of this dusty Euphrates River city Saturday, munching ice cream and promoting cooperation between Americans and Iraqis in a Sunni Arab community where insurgents have been driven out before — only to return.
Gen. David Petraeus visited Hit, scene of bloody fights with insurgents for the last three years, to affirm U.S. support for a nascent city administration and to deliver a message that American troops will remain here until Iraqi forces are genuinely ready to provide their own security.
To demonstrate his confidence, Petraeus, accompanied by dozens of armed U.S. troops and Iraqi policemen, strolled down the main street, stopping to buy ice cream from a vendor and wandering through the city market, where snipers were taking potshots at U.S. patrols just months ago.
"Iraq presents its own complex set of challenges and you have to do one city at a time," Petraeus said as he beamed at hesitant crowds and delivered Arabic greetings to small groups of young boys who stared at the entourage from the curb.
Few of the Iraqis returned the greeting and most kept back, perhaps intimidated by the stern-faced gun-toting Iraqi policemen who appeared keen to make sure nothing went awry during the visit.
Today in Africa & Middle East
Iraqi leader requests regional aid to curb violence Kenyan police arrest key Al Qaeda suspect Disaster puts spotlight on Malian immigrants to U.S.
Nevertheless, the fact that a senior American general could walk through the public market in a Sunni city with such a bloody past indicated a degree of progress which U.S. commanders are keen to exploit.
That is key to the new U.S. strategy of clearing areas of insurgents and then remaining there to promote economic and quality of life projects. In the past, Iraqi forces failed to maintain control once the Americans were gone.
Last month, Iraqi police backed by American troops from the 2nd Battalion, 7th Infantry Regiment, 3rd Infantry Division, swept through the city of about 120,000 people about 160 kilometers (100 miles) northwest of Baghdad, arresting suspected insurgents and establishing three new police stations in the downtown area.
Since then, the number of violent incidents — mostly bombings and shootings — has dropped from an average of five per day to about 1.3 a day, the lowest level since March 2006, according to Lt. Col. Douglas Crissman of Faifax, Va., the battalion commander.
The plan is for U.S. and Iraqi checkpoints around the city to turn Hit (pronounced Heet) into a "gated community" free of insurgents, Crissman said.
To convince the locals that better days are ahead, U.S. officers plan to fly in 20 billion dinars ($15 million) to float the local bank, which will enable retired government employees and soldiers to start receiving pensions and provide cash to bolster the economy.
The Americans are also encouraging the Shiite-run government in Baghdad to pay more attention to mostly Sunni Anbar, including authorizing funds to pay for the extra police. But U.S. forces have claimed similar successes in the past in Hit, only to see gains lost because of a lack of enough troops here in Anbar province, a vast area that stretches from the western edge of Baghdad to the borders with Syria, Jordan and Saudi Arabia.
Despite a recent cleanup campaign, the city still bears the scars of conflict, including concrete barriers around a local mosque from which insurgents used to fire mortars at American positions.
"See that hole in the wall," said Sgt. Maj. Samuel Coston of Wallace, N.C. "An IED threw a Bradley" fighting vehicle "into it, and a Bradley weighs 30 tons."
In early 2004, the Marines took over responsibility for western Anbar but had to shift forces eastward when violence flared in the Anbar provincial capital of Ramadi and in Fallujah.
With the remaining Marines overstretched, Hit fell under insurgent control and became a waystation for weapons and fighters entering the country from Syria toward Baghdad and other cities.
Marines worked with a local Sunni tribe, the Abu Nimur, to recruit police and Iraqi soldiers and were well on their way to establishing Hit as a model of U.S.-Iraqi cooperation.
But U.S. units were moved again from Hit to support the siege of Fallujah in November 2004. Insurgents returned, killing policemen, intimidating residents and ambushing American convoys.
The son of the current police commander, Col. Hamid Ibrahim al-Jaza, was beheaded on a soccer field. Hit has remained a flashpoint ever since.
To heal the wounds, U.S. officers are promoting community development plans, including a new wing of the local hospital, and are recruiting hundreds of police to bolster the city's 827-member force.
Calgary companies pursue Kurdistan oil
Ashok Dutta, CanWest News Service; Calgary Herald
Published: Friday, March 09, 2007
CALGARY - Two Calgary-based oil companies have made progress with upstream development plans for oil and gas concessions in the northern Iraqi region of Kurdistan.
Braving high security risks and tension in the Shia-Sunni divided Iraq, Addax Petroleum Corp. and Western Oil Sands Inc. are the flag bearers of Western oil companies doing business in Iraq. Addax Petroleum and Western Oil Sands aim to produce at least 200,000 barrels per day by 2009.
"(Availability of) opportunity is a key factor for Calgarian oil companies to go into Kurdistan," said Martin Molyneaux, senior analyst with Calgary's FirstEnergy Capital. "There are not many areas in the Middle East that allow upstream access to foreign companies."
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Font: ****Barring Qatar, United Arab Emirates, Oman and Yemen, no other Persian Gulf state signs PSAs with international companies for their oil sector.
Addax Petroleum is more advanced - it announced in early March test flows of 26,550 bpd of light oil from TT-05, the second appraisal well drilled at its Taq Taq licence area. The 680-square-kilometre onshore concession is located 60 kilometres northeast of the giant Kirkuk, which by itself has a production capacity of nearly 1 million bpd.
Addax has formed a 45:55 joint venture with Genel Energie of Turkey to implement a 25-year production sharing agreement (PSA) it signed with the Kurdistan Regional Government in early 2004. Called Taq Taq Operating Company (TTOPCO), it will be the first international firm to produce crude oil in Kurdistan.
Iraqi Kurdistan is home to 25,000 million barrels of proven reserves and another 20,000 million barrels of probable reserves.
The Kurdistan Regional Government is seeking assistance of international oil companies to attain production capacity of 1million bpd by 2010/12.
"We aim to complete drilling a third well by late March," Les Blair, general manager of TTOPCO said Thursday from Turkey. "Evaluation of test flows in under way. Under the full-field development program, we are looking at a start-up production capacity of 200,000 bpd in 24 months."
In early March, Western Oil Sands announced that the KRG government had ratified an exploration and production sharing agreement (EPSA) it signed in May 2006.
Under the deal, WesternZagros Ltd - a 100 per cent-owned subsidiary of Western Oil Sands - will carry out an exploration program over a sizeable block, which lies in the Zagros fold belt. The next stage will involve geological studies and exploratory drilling.
"The final EPSA area encompasses 2,120 square kilometres and holds a number of potential prospects," a Western Oil Sands statement said.
Last year, it had stated a minimum contractual commitment of $45 million over the first four years.
"Should exploration prove successful, additional expenditures are anticipated," Western Oil Sands said.
The two Calgary companies are followed closely by DNO, which in 2004 signed two PSAs for the Tawke and Khanke concessions along the border with Turkey.
The Norwegian company is expected to start pumping crude by the summer at an initial rate of 15,000 bpd. It has also finalized development plans with the KRG, including the construction of an export pipeline and a central oil processing facility.
adutta@theherald.canwest.com
Calgary Herald
Calgary companies pursue Kurdistan oil
Ashok Dutta, CanWest News Service; Calgary Herald
Published: Friday, March 09, 2007
CALGARY - Two Calgary-based oil companies have made progress with upstream development plans for oil and gas concessions in the northern Iraqi region of Kurdistan.
Braving high security risks and tension in the Shia-Sunni divided Iraq, Addax Petroleum Corp. and Western Oil Sands Inc. are the flag bearers of Western oil companies doing business in Iraq. Addax Petroleum and Western Oil Sands aim to produce at least 200,000 barrels per day by 2009.
"(Availability of) opportunity is a key factor for Calgarian oil companies to go into Kurdistan," said Martin Molyneaux, senior analyst with Calgary's FirstEnergy Capital. "There are not many areas in the Middle East that allow upstream access to foreign companies."
Email to a friend
Printer friendly
Font: ****Barring Qatar, United Arab Emirates, Oman and Yemen, no other Persian Gulf state signs PSAs with international companies for their oil sector.
Addax Petroleum is more advanced - it announced in early March test flows of 26,550 bpd of light oil from TT-05, the second appraisal well drilled at its Taq Taq licence area. The 680-square-kilometre onshore concession is located 60 kilometres northeast of the giant Kirkuk, which by itself has a production capacity of nearly 1 million bpd.
Addax has formed a 45:55 joint venture with Genel Energie of Turkey to implement a 25-year production sharing agreement (PSA) it signed with the Kurdistan Regional Government in early 2004. Called Taq Taq Operating Company (TTOPCO), it will be the first international firm to produce crude oil in Kurdistan.
Iraqi Kurdistan is home to 25,000 million barrels of proven reserves and another 20,000 million barrels of probable reserves.
The Kurdistan Regional Government is seeking assistance of international oil companies to attain production capacity of 1million bpd by 2010/12.
"We aim to complete drilling a third well by late March," Les Blair, general manager of TTOPCO said Thursday from Turkey. "Evaluation of test flows in under way. Under the full-field development program, we are looking at a start-up production capacity of 200,000 bpd in 24 months."
In early March, Western Oil Sands announced that the KRG government had ratified an exploration and production sharing agreement (EPSA) it signed in May 2006.
Under the deal, WesternZagros Ltd - a 100 per cent-owned subsidiary of Western Oil Sands - will carry out an exploration program over a sizeable block, which lies in the Zagros fold belt. The next stage will involve geological studies and exploratory drilling.
"The final EPSA area encompasses 2,120 square kilometres and holds a number of potential prospects," a Western Oil Sands statement said.
Last year, it had stated a minimum contractual commitment of $45 million over the first four years.
"Should exploration prove successful, additional expenditures are anticipated," Western Oil Sands said.
The two Calgary companies are followed closely by DNO, which in 2004 signed two PSAs for the Tawke and Khanke concessions along the border with Turkey.
The Norwegian company is expected to start pumping crude by the summer at an initial rate of 15,000 bpd. It has also finalized development plans with the KRG, including the construction of an export pipeline and a central oil processing facility.
adutta@theherald.canwest.com
Calgary Herald
Mornin' Larry. Rain here.
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