Peter, The strategy of the purchase looks good. The Encore producing properties are said to have a low decline rate and the company has over 300K acres of Bakken and over 19K acres of Haynesville Shale. If ENP Encore Energy Partners keeps paying the $2.15 dividend, the almost 21 million shares owned by Encore would pay the interest on a good slice of $1 B. I think that , worldwide, there is a tendency to buy oil and gas resources NOW before the economy improves and the energy prices soar. If energy prices increase, this move will be seen as smart. If not, well we know that scene.

I am very pleased with my US Energy Corp.(USEG) shares. The shares have done nothing for ages, but recently the company got into the oil business and their first two Bakken wells tested at 1,805 and 1,553 BPD plus NG. (35.55% net revenue.)

The management has also been very clever with their mineral claims. The uranium was sold to Uranium One for $100M plus large additional payments if production starts. The molybdenum was contracted to Thompson Creek Metals for development. Thompyon develops and USEG retains 25% of a first class mineral deposit.

They also have a few million $$invested in geothermal power and own a 216 unit real estate development.

My old favorite UTS Energy made the news with a sale of a small part of their leases for $250 M Cdn. After tax they will have around $640 M Cdn cash, no debt, extensive leases, and are waiting for better times.

Regards, Hugh