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Scott Fraser
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CONTRARIAN STRATEGY UPDATES - July 14, 2009

Make sure you are continuing to buy Doral Energy at the current $2.65 level -- our share-price projections on DEGY have moved up yet again. Doral Energy has already announced production numbers of 155 barrels of oil-equivalent (BOE) per day at its Hanson Properties in the Permian Basin, New Mexico – and my number one priority is to make sure you own this stock before the next production results are released.

Doral’s Hanson Properties hold an estimated 6.1 Million BOE of total proved reserves based on in-house engineering evaluations – and that’s just the beginning of the company’s vast upside potential in America’s mighty Permian Basin. New Mexico’s Permian Basin contains a whopping 22% (approx.) of U.S. oil reserves and is surrounded by the major powers of the global petroleum industry. This key petroleum basin has produced an astounding 30 Billion barrels of oil-equivalent to date – and Doral Energy has now secured 66 key producing leases at a 100% working interest in 55 of the 66 leases. Our early-shareholder strategy on Doral Energy has already produced an initial profit-taking opportunity of 40% as DEGY spiked to $3.50 per share in mid-March. Now, get ready for a much larger pending profit-opportunity on DEGY shares.

Although Doral’s management recently reported the company is no longer pursuing the acquisitions of Slape Oil Company and Flaming S Incorporated, I fully expect the company to announce additional acquisition targets in the near-term. Doral has stated that it is currently evaluating other oil and gas producing properties within the Permian Basin area with the goal of increasing its portfolio of properties. Doral’s focus is on “producing properties with strong proven reserves and considerable undrilled inventory” that can be explored and developed with reasonable levels of forward risk.

Doral can quickly become a controlling force in what is perhaps America’s most important oil and gas basin. Doral Energy is my #1 pick from the small-cap domestic energy sector; Buy DEGY at the current $2.65 level up to $3 per share.

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