I was watching some analyst and he was talking about how a lot of energy stocks are undervalued and he mentioned book value. Frankly I don't really look at things like that as much but I'm not that sophisticated...but these guys use it religiously to make recommendations etc. Anyway he mentioned that a lot of companies are nearing book value...so basically the value of the company if everything from cash and assets were liquidated and debts paid off...Basically if it's trading at book value, you're just putting value of company net assets and nothing else. Says that it was basically the crash of 2008 in recent times that companies were trading below, which was the greatest buying opportunity we had. For example, Talisman has a Book Value of about $10.50, and they are at about $12.50. Of course this isn't 100% everything they look at it, but when it nears it signals an extremely low valuation.

I went onto my TD account and it shows the QEC book value at $1.06. So we are at $0.70 which is absolutely ridiculous right now. Makes sense to me now when most analysts on QEC were saying fair value not including Quebec valuation at all was about $1.00. Which is probably why most have a buy or hold on it and still hasn't changed in the past 6-8 months.

Anyway, thought that was interesting.

On a side note, I asked Anela about what we are doing in the meantime with this new ventures team (in my mind this has the potential to add real value depending on the play). She just responded to me saying that since April 2011 since the team was set up, they have reviewed over 25 plays and have narrowed it down to a few fields and will need to do additional research and hopefully they can close in on one in 6 months. She mentioned they have big money, but there goal isn't to just pay the most but to create value by getting in cheap.

I agree with that in they're no wasting or throwing down big money just for the heck of it. In these times it's important to preserve capital and be smart with it (which is def what Michael is good at doing). With Dr Faraj at the helm, I'm really looking forward to something coming up big for us! I know they had mentioned some plays had the potential of Quebec so whether we get one or not we don't know, but if we do it could be very nice for us.

In regards to Talisman. If you read the last Pareto conference presenation Powerpoint, it says that drilling in Quebec for commercialization is a no go, but is allowed for pilots. Now that we have interim regulations in place, she said the goal is spring 2012 as mentioned earlier this year. There goal is to keep looking for the sweet spot and so when things ramp up, they'll have the first areas to drill.

Anyway, just a bit of info.

Hope all is well :)

Rocco