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This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript as part of the Morgan Keegan Energy Conferene, available at (212/952-7433) or http://www.twst.com/info/mk.html

TWST: Could we begin with a brief outline of the types of companies that you include in your coverage of the exploration and production sector?

Mr. Chandra: I cover the pure upstream exploration companies with market caps ranging between 100 million to 3 billion. They are just at the pure upstream end of the business.

TWST: What is the particular strategy that you and Morgan Keegan adopt when approaching this sector?

Mr. Chandra: Our place in the world is to identify up and comers and take them from a stage where they are not well recognized by the overall market and then to grow with them. By definition, they will be the mid-cap to small cap company range and we will focus most of our energies in that sub 1 billion market cap range. It has been an evolving emphasis. I think the market that we saw for the last two years and in this last run was rather indiscriminate about which stocks it took along for the ride. In fact, the higher leveraged, higher fixed cost companies tended to do better, but in the market that we have evolved to, more of the focus will be on growth. So our coverage is evolving to the higher growth names in the E&P sector.

TWST: Specifically, could you provide a summary of the companies that fall under your umbrella?

Mr. Chandra: Remington Oil and Gas (Nasdaq:ROIL) is a good example. Quicksilver Resources (AMEX:KWK) is another very good example. They had a lot of reserves when I picked them up but no one followed them. That sounded a little bit strange to me so I got in touch with their management. I liked the people immediately and saw that they had a very strong geographic focus in the Antrim shale in Michigan, almost a sole geographic focus. They were overlooked, they were in a good part of the world and they had a very strong local expertise. So, as I ran the numbers, I thought that they were undervalued and recommended purchase. I think they are on the very fringes of their true growth ramp because they have involved themselves with some excellent partners in a coal bed methane play in Canada, which gives the company upside potential many times over. It is a stock that has tripled in value and has yet to truly realize its complete potential, in my opinion. It had a sub 100 million market cap when we picked them up.

TWST: What are the common misconceptions you hear when talking to the investment community?

Mr. Chandra: The number one misunderstanding is that it is homogenous. It really is not. There are various disciplines that work for various companies. In fact, one way to identify when a company might get into trouble is when they undertake projects that really do not embrace their core discipline. For instance, an engineering company chasing high risk exploration or vice versa. Secondly is the commodity price itself; when do cycles begin and how long do they last? This is usually the major topic for discussion and/or argument. When this group did start moving up in early January 1999, it moved up kicking and screaming. Even after they had appreciated many fold, there were still a very broad group of people out there who said this will not last, that this cycle is not for real, etc. And we fought that every step of the way. I would argue that we are still in that cycle. We certainly have not reached the price level that would indicate the end of it. So it is a macro understanding and a micro understanding that we are here to constantly educate.

TWST: With that in mind, from your perspective what will make the upcoming Energy Conference a success? What are you hoping to achieve?

Mr. Chandra: We have thinned the list of companies that we invited to names that we feel fit our mold, which is that they are under followed with terrific stories and high growth potential. It is not a conference where we have invited anyone and everyone. So, by definition, the companies that we have invited are the ones that we want our clients to buy. It is really a lot different; we are not renting out a podium, which I think some of the other conferences seem to do. And certainly they have their place and add value. However, a way we can differentiate ourselves is by really highlighting the names we want to grow with.