Schlotter: Tamm's Sawn Lake Project an 'Attractive Valuation'

Ernest C. Schlotter, a senior analyst with SISM Research and a StarMine four star analyst, has released a Research Note on Tamm Oil & Gas dated March 28, 2008, stating the company's Sawn Lake Project "holds 3P recoverable reserves and up to 175 million barrels of oil."

The following is a summary of the full SISM report which includes important disclosures, disclaimers and analyst qualifications.

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Analyst Schlotter stated: "Pan Orient's Sawn Lake Project was recently valued by DeGolyer and MacNaughton, and based on 27.1 net sections, was calculated to hold net probable reserves of 72.9 million barrels and a net reserves PV10 value of $405 million. Tamm has 31.5 net sections in the same area, which can be valued at a net present value of $470.8 million, discounted at ten percent, based on DeGolyer and MacNaughton's forecasted pricing. In February of 2004, Ryder Scott estimated that the Sawn Lake Project contained 819 million barrels of OOIP, while log analyses indicated up to 1.6 billion barrels of oil-in-place. In late 2004, AJM of Calgary estimated oil-in-place at 1.2 billion barrels, with the potential for significant expansion of resource. Three drilling programs in 2006 confirmed that Sawn Lake is a heavy oil play with the possibility of cold flow in some parts of the reservoir."

Schlotter also noted: "Tamm Oil and Gas has an attractive valuation, trading at thirty-one percent of its 2008E FDNAVPS. The SISM Research NAV breakdown, based on our per-barrel value assumptions on recent oil sands transaction metrics, is $6.56. We estimate that it will take approx. three to four years, on average, for an SAGD producer to convert contingent resources to reserves. Based on the DeGolyer and MacNaughton reserves appraisal report, just recently released, we arrived at a NAV breakdown of $4.12 for the Sawn Lake Project only."