Diaz Resources Ltd (fka DZRFF)

[bigpike]

Bob and all, I don't think we have an Expedition board, but QIS did an update for EXDNF:

Expedition Energy Inc. (XPD:TSX-V)
Website: www.xpdenergy.com
Current Price: $0.65

Expedition Energy’s Board of Directors has approved a $10 million capital expenditure program for 2006, including the drilling of 15 wells. Approximately 25% of the 2006 capital expenditure program is currently expected to be expended on land and seismic with a view to securing opportunities for late 2006 and into 2007. Expedition's focus will continue to be the expansion of its land base in existing areas as well as the opening up of new prospect areas in north western Alberta. The 2006 capital expenditure program is expected to be funded from cash flow and debt, with debt not anticipated to exceed one year's cash flow.

The company has been successful at recent land sales in Alberta at Ferrier and Cessford and has purchased seismic to be used to evaluate its participation in upcoming land sales. Expedition is currently planning to drill three wells in the first quarter of 2006, subject to rig availability.

Expedition's recently completed gas wells at Ferrier and Cessford, Alberta await tie-in, which has been delayed somewhat due to availability of services. Completion operations are underway at two other wells in Erskine and Huxley, Alberta with tie-ins expected early in the second quarter of 2006.

QIS CAPITAL Comments:

Expedition continues to move forward while meeting announced expectations. Current production rates are anticipated to be announced in the next few weeks following the tie-in of wells at Ferrier and Cessford and once production stabilizes following some maintenance operations at Nevis. The company appears to be on-track to reach its production target of 700 boepd early in Q2 as there is presently about 200 boepd either behind pipe or awaiting completion. The only thing Expedition hasn’t been able to deliver on is commodity prices, which of course it has no control over. The company is currently trading around its last reported net asset value and is trading at just over 3 times cash flow - one of the lowest multiples in the industry. Current cash flow and proceeds from the latest financing should cover the CAPEX program without increasing debt significantly. Expedition plans to stay below one times debt to cash flow which is quite conservative in the current industry environment.