A pilot fish of our star OIL~ Coastal Energy!
We remain invested of course, but not foaming at the mouth! The election, economy and world affairs keeps us under invested!

We have been out of touch for awhile, but engaged in the market and have not been inclined to recommend any "new" opportunities because we have not felt that they would truly offer the kind of discount that we usually aim to buy and recommend to loyal followers.

We are very concerned about the health of the world economy, the out-of-control debt issue of our country, the Iran Nuclear issue- that will only be solved by Israel, this horrible President and his policies that are ruining what remains of this former great country. Instead of bringing the citizens of the USA together with an overall theme of pride he has divided us~ man vs women, black vs white, rich vs poor and business vs nanny state. It is truly sad that the average American is only interested in his or her "smartphone", American Idol or "Facebook" postings! The phone companies have ruined our culture with these devilish devices~ just look around~it is like a disease~countless heads tilted and staring @ these little boxes emitting bits and bites!

We have 200 days before Americans have the chance to rid themselves of this "socialist" and anti- business/military/wall street/oil & gas industry/smaller government President!

Final note: I do not want to be like Europe, Canada, Russia, China or even Australia~ I want the government out of the way! I don't want to be controlled and socially engineered~I want Capitalism to prosper~ I want the choice to decide about health insurance. I want government to get out of my face!


Salamander Energy~ smdr.l or saldf.pk
Salamader Energy is primarily an E & P that has interest in Thailand onshore and offshore and Indonesia. Please visit www.salamander-energy.com and review the complete site for an informative oversight of this overlooked discounted oil and gas opportunity.

During 2011 saldf.pk achieved record revenue ($400 million) and an operating profit ( $136 million) and showed a loss for the year of $45 million because of tax issues. The tax issue resulted from one time events and the operational structure of the company. The 'new" company has been altered and will alleviate much of this tax burden in the future. Some reserves and production have been sold in order to strengthen the overall theme of saldf.pk.

Even though production will drop for 2012 because of these corporate changes~ the future for saldf.pk has become more focused & has formulated a better profit culture~ this includes a stronger and greater depth of management.

At present there are 160 million fully diluted shares outstanding and a convertible debt of $100 million due around April 1, 2015 and converted @ around $5.85 ( based upon today's British Pound). If all bonds were converted it could add another 17 million shares. The big picture: by 2014 production anticipated to reach some 23,000 boepd ( mostly oil) and most production coming from offshore Thailand near the property that Coastal "farms"~ in our opinion it looks like saldf.pk's acreage is a little North of BBN and to the west. Most of the development during second half of 2012 will be further development of the offshore Thailand property with the addition of 1 platform and 1additional rig. Indonesia should not be overlooked either~ recently spud a 100% owned well that could yield 10-15 MMscfd~ we should have results within 30 days or so! The real value is the discount proven P1+P2 of over 75 million barrel~ If we value each barrel @ a very conservative value of $20/barrel you get $1.5 billion- this DOES NOT INCLUDE THE 900 MILLION BOE OF PROSPECTIVE RESOURCES IDENTIFIED IN HIGH-GRADED 15 PROSPECTS WITHIN 3 CORE AREAS!
The current market-cap of Salamander Energy based upon the US share price of $4.00 and using 160 million fully diluted shares equals $640 million-compare the numbers and just based upon the comparison you will have to buy the shares!

Visit the website www.salamander-energy.com and review the annual report for 2011, the March 2012 presentation & webcast & even if you have a low IQ you will still see the discounted value! There are around 10 brokerage firms that follow saldf.pk or smdr.l and have a near term price of $5.50! I believe the pricing would be more aggressive, but like usual the brokerage community has no "balls" and will not assume anything until result starts to flow! Salamander is in the "show me " state and once result starts to materialize the community will get more aggressive in their price target~~ was the same for Coastal when we first recommended the shares @ $5.60 during Dec of 2010- the herd did not want it because it was on the pinks and had no volume. As you know the rest is history~ cenjf.pk. cen.to or ceo.l traded as high as $21.50 this year ( currently $16.50).

We have heard on the street that Salamander's management have been shopping the company & while we wait we get a very cheap asset that is worth at least two to three times the current price valuation.

At the end of 2011 smdr.l or saldf.pk had $85 million in cash + during early 1st Q sold $35 million worth of tanker oil left over from 2011. Production estimates for 2012 are 12-13k boe/d and Capex of $225 million. Higher production offshore from Thailand (Bualuang) will increase margins dramatically. Salamander's oil is priced using Dubai minus $1.10/bbl. During the 2nd half of 2012 at least 16 wells will be drilled within the Bualuang field offshore in Thailand. Additional activity is planned for their Indonesia properties- please review March 2012 webcast and presentation for further insight.

We like and rate Salamander with a strong Buy rating for short and long term capital appreciation. In our opinion, we see little downside risk and further appreciation during their major drilling season within a few months.

In case you have not noticed, the domestic oils have been "flat line" and trending lower during the past 45 days or so! We all know that WTI is around $102/barrel & has about a $20 Iran risk, other hot spots and interruption baked into the price and Obama's lack of any meaningful energy policy except his fantasy solar panels, windmill cars and algae power plant fuel .

The Bakken stocks have many issues that have hampered their results. The bottle-neck and glut of oil coming out of ND has resulted in discount prices being paid for the black gold, NG prices are around $2 mcf and continued delays in frac crews and supplies all add up to missed rev and earnings estimates. Just look at the list~ wll, clr,oas,dnr,axas,kog, sdcjf.pk,mhr & hes~ everyone is trading well below their 52 week highs. I think they will continue to head lower unless Iran's cork is popped by Israel and then all bets are off! I do know that Obama has zero "balls" to confront Iran so it will be up to Israel to do the world's dirty work!

Our last letter's recommendation ~ Dragon Oil was recommended @ $7.35 and has a different story to tell & is currently $10.00 and within .37 of making a new 52 week high. Most did not like Dragon Oil for the same reasons- pink sheets and little volume on the American exchange~ sorry you missed out!


Portfolio of oils stocks July 2009-April 22, 2012
symbol recom price price status

cenjf.pk 5.64 16.50 B

mauxf.pk .70 .99 H

sdcjf.pk .16 .80 H

qep 32.96 29.32 H

axas .96 2.89 B/H

sd 5.23 sold 1/2 11.27 current price 7.06 B

ureyf.pk .25 .12 B

cmt.to .72 S @ .12 ----

erx 25.00 45.52 H

cll.to .83 .92 H

bexp 3.95 S 36.50 -------

useg 2.75 2.64 H

kog 1.28 8.99 B/H

ssn .59 S 1/2 3.83 current price $2.00 H

aez 6.44 bought out 7.53

bp 40.00 41.99 B/H

wres 3.33 2.98 B

dej .30 .30 B/H

gmrx 5.37 S 1.29

etkef.pk .18 .15 H

skwef 5.60 1.32 B

melef.pk 4.86 3.83 B/H

sxprf.pk 5.95 bought out 6.25

bllxf.pk 5.60 4.14 B

pbkef.pk 13.10 15.22 H

mhr 6.86 5.66 H

hes 68.74 55.07 B

cenjf.pk 10.55 16.50 B

oas 24.39 30.72 B/H

sd 6.92 7.06 B

kog 5.58 8.99 B/H

mhr 4.19 5.66 H

cenjf.pk 9.20 16.50 B

cpx 20.38 bought out 34.46

clr 49.88 85.08 H

mhr 3.34 5.66 H

dragf.pk 7.35 10.00 B



Would not touch kog or mhr until earnings are released~ usually both never satisfy. I believe that the whole sector will remain weak until we get a better handle on Iran and the world economy. I believe that International exposure is better cenjf.pk, dragf.pk and saldf.pk! Obama continues his war on the oil and gas companies and also "crows" that there is greater production under his failed administration than in recent memory. Most positions could be pared back 10-15% in order to raise capital if this market gets nasty. The old adage, "go away in May and return Nov" has worked~ the stats- put $10k into the market 1955 would have been worth $6.8k ~ put $10k into the market Nov through April would be worth an amazing $1.6 million!!!!!!!!!!!!

Ski season in Big Sky, Montana was fair~ got injured in Feb and lost 25 day so only skied 52 for the year with little snow and warm temps. For those looking for a new hobby - buy a Smith & Wesson M&P 15-22~ trick it out with a green dot Trijicon, a Geissele trigger, Magpul Buttstock, Harris bi-pod and Larue forward Universal grip- once you master that you can graduate to Larue Tactical "Predatar 5.56~ www.laruetactical.com only into targets and no animals!

Special Note: Bought a position in petef.pk or pie.v- read the past and present press- a worthy speculation in the NE of Montana~ could be a real sleeper @ .45

2. APWC~ $3.00 awarded a $87 million dollar contract~ read current press. We should see the 10k/2011 very soon & 1Q/2012~still the cheapest stock I own and that most of you hate! One of these days I will wake up and see a gap of $4-5 dollars from current levels because of a buy-out!

3. Natural Gas ETF- BOIL- something to watch and maybe nibble. 2X the performance of Dow Jones UBS Natural Gas Subindex for a single day- Pro Shares~around $6.00- moves with NG.

We have not been paid for any listed investment within this e-mail alert. We may buy, sell and/or hold at our discretion.

Subscription information can be found within our Dec 26,2011 email alert!

PS: running mate for Romney- either Rubio or Allen West!