UndiscoveredEquites.com, Boca Raton, FL December 31st, 2008 |About stocks: UPL / MNAP.OB / GTE / IOC / SWN / AEZ / APC / BPZ / MRO / HUSA

As promised we at Undiscovered Equities would like to take this opportunity to showcase our top 10 energy ideas for 2009.

Last year we urged our subscribers to play it conservative, buy a little on dips, but keep their powder dry for what we feel will be a huge buying opportunity. That opportunity now presents itself as we have been in a period of forced liquidation for sometime. Exploration and development company’s share prices have been decimated as institutions and hedge fund managers sold whatever they could to meet redemptions.

As 2008 comes to a close, we like Warren Buffet believe the recent stock market collapse has created “one of the greatest buying opportunities of our lifetime.”

We expect these 10 energy stocks to outperform in the New Year and we feel the timing right now with oil at $38 is perfect. Our advice to our subscribers is to ignore the nervousness of the times, remain patient, and have a long term outlook. From our experience, the road to successful investing is in finding great businesses: the ones that can make huge profits and grow dramatically even in today’s economic environment. Also, it is always important to keep some cash in reserves for extraordinary opportunities, as the volatility and tough economic conditions remain.

All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!

Ultra Petroleum (NYSE: UPL) $34.03

Another great quarter for Ultra Petroleum. “As is our practice, we delivered industry leading margins, financial returns, and record production" stated Michael D. Watford, Chairman, President and Chief Executive Officer. "The sustained consistency in our growth and returns is what differentiates us from our peers and demonstrates the company's ability to focus on best in class metrics and capital discipline." Ultra has some of the best economics in the U.S. with production costs of about $2.50 per mcf. Ultra Petroleum Corp. is an independent exploration and production company focused on its core properties in the Green River Basin of southwestern Wyoming; the Pinedale and Jonah Fields. Ultra controls more than 147,000 gross (79,566 net) acres in and around the prolific 90 square mile Pinedale Field and the 36 square mile Jonah Field. Ultra believes that these areas hold greater than 35 Tcfe of gross recoverable reserves. This company is virtually printing money. What a great business model.

Manas Petroleum (OTC.BB: MNAP) $.25

Manas Petroleum is an international oil and gas company. Its activities are primarily in South-Eastern Europe, Central Asia and South America. In Albania Manas has developed a giant exploration project with a total resource potential (P50) of 3 billion barrels (independent resource evaluation, Gustavson, 2008). Manas has also recently signed a PSC with the Albanian government covering 2 blocks, one which includes a light oil discovery. In Kyrgyzstan Manas has signed a US $54 million farm-out agreement with Santos a large independent Australian oil and gas producer covering its 1.2 billion barrels in place, light oil play (independent resource evaluation Scott Pickford, 2005). Drilling is expected to begin imminently. The development of the company's neighboring Tajikistan license is now covered by an option farmin agreement also with Santos where a seismic program was recently completed. In Chile, Manas and US partner IPR farmed out a large natural gas exploration project to a consortium of local operators. Work developing the natural gas exploration play is expected to commence early 2009. In Mongolia the company recently completed a phase 1 geological program which defined structural trends with potential petroleum accumulations in preparation for a planned 2009 seismic program. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities. I find it reassuring that three of Manas Petroleum’s five giant projects are farmed or optioned to major oil companies. This is our most speculative pick, but with the company’s gigantic assets it surely has the greatest upside potential.

Gran Tierra Energy, Inc. (AMEX: GTE) $2.56

Gran Tierra Energy Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. They recently announced a capital spending program of US$198 million for exploration and production development operations in Colombia, Peru, and Argentina for 2009. This budget includes the drilling of seven exploration wells and six development wells in Colombia, in addition to seismic acquisition programs in Colombia, Peru, and Argentina. Production is expected to grow to approximately 20,000 barrels of oil per day (BOPD), net after royalty, in the second half of 2009, in contrast to previous expectations of approximately 15,000 BOPD, net after royalty. Gran Tierra Energy currently has approximately US$140 million in cash and no debt. The 2009 work program and budget is expected to be executed using cash and cash-flow from operations, assuming a West Texas Intermediate oil price remaining above US$22 per barrel of oil in 2009. With the recent acquisition of Solana Resources, Gran Tierra has transformed into a premier intermediate oil and gas exploration and production company.

InterOil (AMEX: IOC) $11.75

InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 8.7 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. All eyes will be looking out for the coming results of the Antelope 1 appraisal well in the Eastern Papuan Basin.

Southwestern Energy (NYSE: SWN) $29.67

Southwestern Energy Company, an independent energy company, engages in the exploration for and production of natural gas in the United States. It has two segments, Exploration and Production, and Midstream Services. The Exploration and Production segment engages in the exploration, development, and production of natural gas and oil in the United States. This segment also engages in conventional drilling programs in the Arkansas part of the Arkoma Basin, and conducts development drilling and exploration programs in the Oklahoma portion of the Arkoma Basin and in Texas, as well as operates drilling rigs in the Fayetteville Shale play and in East Texas. The Midstream Services segment engages in the marketing of its own gas production, as well as third-party natural gas; and transportation of natural gas. As of December 31, 2007, the company's estimated proved natural gas and oil reserves were approximately 1,450 Bcfe of gas. This company is growing by leaps and bounds.

American Oil & Gas, Inc. (AMEX: AEZ) $.71

American Oil & Gas, Inc. (AMEX: AEZ) is a Denver based independent oil and natural gas exploration and production company focused on building shareholder value from projects and properties located in the western United States. The majority of current and planned activity is centered in the Rocky Mountain Region. American currently owns interests in approximately 420,000 gross acres located primarily within 3 core project areas: Douglas, Krejci and Goliath. Drilling is underway in all three project areas. Management believes that each of these three projects hold the potential for a large multi-year inventory of drilling locations. With initial and continued drilling success, American’s current acreage positions hold the potential to drill up to 100 gross wells at Goliath, 375 gross wells at Fetter and over 700 gross wells at Krejci. The Douglas project area holds numerous opportunities in addition to those at Fetter. At $.70 AEZ is now trading at less than cash value with significant acreage assets worth many times its current market cap.

Anadarko Petroleum Corporation (NYSE: APC) $37.95

Anadarko Petroleum Corporation is among the largest independent oil and natural gas exploration and production companies in the world, with over 2.4 billion barrels of oil equivalent (BBOE) of proved reserves. Anadarko's portfolio of assets encompasses premier positions in 10 major U.S. onshore natural gas resource plays. The company also is the largest independent deepwater producer in the Gulf of Mexico, and has production and/or exploration in Alaska, Algeria, Brazil, Ghana, China, Indonesia and Mozambique. We think Anadarko is a great acquisition candidate.

BPZ Resources, Inc. (AMEX: BPZ) $6.17

Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company is currently executing the development of the Corvina oil discovery, the redevelopment of the Albacora oil field, and the exploration of Block XIX, in parallel with the execution of an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and the development of a regional gas marketing strategy. We think the risk is worth the reward.

Marathon Oil (NYSE: MRO) $26.65

Marathon Oil is engaged in worldwide exploration and production of crude oil and natural gas; domestic refining, marketing and transportation of crude oil and petroleum products primarily in the Midwest, the upper Great Plains and southeastern U.S.; as well as worldwide marketing and transportation of products manufactured from natural gas. Marathon conducts exploration, development and production activities in ten countries, namely the U.S., the U.K., Norway, Angola, Equatorial Guinea, Gabon, Libya, Ireland, Russia and Canada. The company's net proved liquid hydrocarbon and natural gas reserves totaled about 1.262 billion barrels of oil equivalent. This is a great integrated oil company.

Houston American Energy Corp. (Nasdaq: HUSA) $2.97

Houston American Energy Corp. (HUSA) is an oil and gas exploration and production company whose activities are focused on properties in the U.S. onshore Gulf Coast Region, principally Texas and Louisiana, and on the development of concessions in the South American country of Colombia. Mr. John F. Terwilliger, President and Chairman of Houston American Energy, believes that despite the recent decline in oil and natural gas prices, Houston American Energy will continue to drill economic wells and further delineate our recent discoveries on our various contract areas in Colombia. This continued drilling has the potential to significantly enhance our growth rate in revenues and cash moving forward. This company continues to impress us.