CandleKEY and ERH are both on my watch list and look good...

Candle

KEY and ERH are both on my watch list and look good mid-to-longer term. ERH are finding oil onshore in Brazil (I was going to buy in but got distracted so missed out on its recent run). I am aware of KEY's connection to HDR, and that they have some good tenements. I suspect some of KEY's recent run is due to T4P being supportive and to be realistic there are quite a few cheap oilers at present.

However, I am trying to conserve some cash in case the market really blows up (still a possibility in my view). Once that happens I could be locked in for a long time. The alternative is to cash out now and wait for such a blow up, a not unreasonable strategy given how the sharemarket has performed over the last 10 months and the problems in the financial markets overseas in both USA and Europe.

My oilers are CVN (a reasonable bet but Thailand taxes them too much so its best to buy on major pullback - I got in early) and OEL (a recommendation by Stockanalysis with significant potential in Philippines and elswhere). My other Stockanalysis holds are BOW and HZN. Then I degenerate into really way out MHL and PRE (which could have some gas in addition to gold). My EPE is turning more into a coal company than an oiler, and will have massive potential if the reverse takeover deal gets carried out. I do not take big bets on any of these companies, in order to spread risk.

I guess with OZL (former OXR) falling so much, it is a potential recovery story at some point but from perhaps an even lower level. PEM's fall has been another shocker (luckily I avoided the recommedation to buy some when they were several dollars).

I suggest you put WSA on your watch list. It is a high value Ni play with takeover prospects. In a major sharemarket retracement it could fall back to $5-6 level (JBM fell from about $18 to $11 late last year for a brief period (1 day) and was taken over at $23 shortly after by Xstrata.

I hope CAS gets the rights to mine the uranium. That could become another PDN or even better.

Good luck in your investment strategy. It is tough out there, amd Mr Market takes no prisoners.

loki