CALGARY, Dec. 13 /CNW/ - It would have been difficult for investors to go wrong in the Canadian oil and gas sector during the third quarter of 2005, research released today shows. An analysis by Iradesso Communications, a Calgary-based investor relations firm, reveals that the median total return during the third quarter for conventional energy trusts (including capital gains and distributions) was an impressive 25.7 percent - up a striking 22 percentage points over the second quarter 2005. Of the 34 trusts included in the report, not a single trust produced negative returns in the third quarter. Topping the list was the newly-minted Fairborne Energy Trust (TSX: FEL), which boasted an increase of 74.3 percent. Trilogy Energy Trust (TSX: TET) was another top performer with gains of 59 percent, while Harvest Energy Trust (TSX: HTE) also saw strong growth with an increase of 44 per cent. The median increase in junior company share prices was 29 percent, up 27 percentage points over the previous quarter. Petrobank Energy and Resources (TSX: PBG) and Berens Energy Ltd (TSX: BEN) were the leaders among companies included in the report, each shooting up 109 percent. Find Energy Ltd. (TSX: FE) also proved to be a major player, with an increase of 103 percent. Of the 121 junior oil and gas companies and trusts included in Iradesso's quarterly comparison, known as the iQ report, more than 97 percent produced positive returns for investors between July and September of this year. Iradesso President Peter Knapp says such remarkable growth is part of the cyclical nature of the oil and gas industry. "The kind of investment returns realized in the third quarter cannot last," Knapp says. "In fact, stock prices have pulled back in the past two months, potentially to cycle forward again sometime soon." The third quarter of 2005 also produced some strong gains in overall production. Of the companies appearing in the report, Birchcliff Energy (TSX: BIR) saw the greatest increase in production, leaping up 217 percent to 4,626 barrels of oil equivalent per day (boe/d), from 1,460 boe/d in Q2 2005. Since 2003, the iQ Report has tracked the performance of publicly-traded conventional energy trusts and junior oil and gas companies that operate primarily in Western Canada. To be included in Iradesso's research, the juniors must have Q3 production between 500 and 15,000 boe/d, while trusts must be focused on conventional oil and gas production. The iQ report compares statistics for juniors and trusts ranging from cash flow multiples to changes in quarter-over-quarter production levels. The report is available free of charge to investors who contact Iradesso Communications through an online form available at: www.iradesso.com/i/IOR/newsserviceform.html

