Daylight Energy Trust (DAY.UN-TSX) bought Highpine Oil and Gas (HPX-TSX) on Sunday, August 23^rd for $7/share in stock and cash.

Daylight, like most Canadian trusts, is natural gas weighted and has debt.  When your production is 72% natural gas, as Daylight was, you cannot afford to have 72% of your production giving you almost no cash flow to service debt, much less have leftover money for drilling and shareholder distributions.

Daylight’s debt was not onerous, but it could have been an issue should natural gas prices remain low through 2010. There are dozens of Canadian listed energy stocks in the same position – gas weighted, and high debt.

Highpine, which had very low debt and was heavily oil weighted in Alberta, should cushion Daylight investors against any lengthy continued downturn in natural gas prices.

Today I bought an oil and gas stock that fits my criteria perfectly – debt free, proven management, and with a recent new oil discovery, enough undeveloped land they could increase production 3-4x over the coming 2-3 years without having to raise money or go into their untapped line of credit.  This company’s oil play is one of the most profitable I have ever seen.

Subscribers received an investment bulletin within minutes of my purchase with a brief explanation of the company, its prospects, and how much I bought at what price.

In the 2 months since the paid subscription service began, subscribers have had one stock has double for them, and two are up 30% (including TriStar, which is getting bought out almost 40% above my purchase price in just one month.

After an interim bulletin goes out on a portfolio purchase, I follow up with a more complete, 2-8 page report on the company in my next full issue.

To learn more about why I think my most recent investment will be a profitable one, join our growing community of subscribers.  I offer a risk-free three month refund guarantee on annual subscriptions.

Petrobank Energy and Resources (PBG-TSX; $35.97) announced yesterday it was creating a 37,000 bopd Bakken-focused oil producer by merging its Canadian Business Unit (CBU) with TriStar Oil and Gas (TOG-TSX; $11.51) to create a new company, Petrobakken.