Canadian Oil

[johnlw]

Canaccord comment on SND.un

Sound Energy Trust (SND.UN : TSX : $3.86), Net Change: 0.41, % Change: 11.88%, Volume: 3,341,606
Will Ferrell plays Maria (Julie Andrews) in a remake of The Sound of Music. How lucky can we get? Sound reported Q4 and
year-end 2006 results. Q4 production was 10,536 boe/d. Q1 production levels are estimated at approximately 10,100 boe/d.
2007 production guidance is 10,200 boe/d. Sound estimates their payout ratio to average approximately 50% for the year. Based
on price assumptions of US$55.00/bbl WTI and $7.00/Mcf AECO, their cash flow projections for 2007 are $78.1 million. These
funds will enable to cover distributions of approximately $43.0 million and capital expenditures of $31.3 million without issuing
additional equity or increasing our debt levels. Year-end total net debt amounted to $113.0 million against an available bank line
of $146.5 million. Sound’s net asset value (NAV) based on a year-end report by the trust’s independent engineers, GLJ
Petroleum Consultants is $5.05 (PV10%) per unit. That’s over 20% below the reported NAV.