S.A. Advisory E-Mail Update

December 23, 2001

Strong Buy Recommendation on KHL.V-announces close of acquisition
Dear E-mailer's:    http://www.saadvisory.com
 
Happy Holiday to all readers and subscribers!  We are planning for a winning 2002 !
 
We have not been paid by listed securities within this message!  We may buy, sell and/or hold
mentioned securities within this message.
 
If you wish to  remove yourself from our list-please visit http://www.saadvisory.com/update
and follow the simple directions.
 
 
As mentioned  within  our Oct 21, 01 and DEC 06,01 e-mail alert---We had placed a strong
BUY recommendation on KHL.V @ roughly .40 US on the assumption that the pending
acquisition would get completed and propel KHL.V into the junior oil and gas producer classification
from the current status of emerging oil and gas producer.  Many delays had occurred, but on DEC 21st
01 --THE PENDING ACQUISITION WAS COMPLETED!    See press release dated DEC 21st
01 @ 7:01 EST.  This development is extremely Bullish for KHL.V and in our opinion should finally
begin to see  rapid share appreciation from  current levels.
 
From our Oct 21st e-mail alert and from management- that earnings would be .35CD based upon
38 million shares outstanding for year ending DEC 01 ( this value includes the acquisition) 
 
Since that time management raised additional funds and it is 
our current belief that we now  have
50 million- 55 million shares fully diluted outstanding--this is our assumption!  Production has 
grown from 1000 boepd to 4900 boepd(6:1)--This is huge and we strongly believe that KHL.V
should start to fly on Monday-Dec 24th 01-- We assume with the greater shares outstanding that
earnings/sh may be less than earlier EST.  we intend to be more conservative and say .29 CD for 01
earnings/share for year ending DEC 31,01.
 
If we assign a conservative PE of 7 to our 01 earnings EST. we get a share price of around $2.00CD!
At present KHL.V is only trading @.62 CD--This amounts to over 200% just to get to fair value!
 
We assume not that the deal is done that the brokerage firms in Canada will most definitely begin
to follow and rate KHL.V with very Bullish opinions..  
 
In our opinion, KHL.V is a screaming buy @ current levels and should be purchased promptly
on DEC 24th @  current levels!  We anticipate Toronto listing soon, which will give KHL.V a
"kick" upward.  We currently own 70k shares of KHL.V and truly believe that this will be a big
winner for involved investors.
 
NOTE:We have been invited to pick a stock or stocks for 02--This will appear in Dick Davis Digest
during mid- Jan 02---Last year we used AOG.TO--recently bought out 200% from our recommended
price.  WE intend only to supply investors that pay us $300.00 with our selections or selection prior
to the magazines release.  We have decided that January 06-07 ,02 we will contact every investor that
pays our fee and exclusively supply them with the current pick or picks that will appear within this
publication ( reaches 40k readers plus nationwide newspapers).  First received checks will be first to
be informed of the stocks!
 
Send check:  S.A.Advisory, 2274 Arbor lane   #3, Salt lake City, Utah 84117
please include phone number so we can contact you directly.  
questions call-801-272-4761--act today--snail mail is very slow!
 
Final note: Currently still in Australia--found some sharks @ the reef, but was unable to locate
any crocodiles.
 
Yours truly,  William Velmer
 

Click here to go to the Email Archive