RESEARCH DISCLOSURES FOR PETROL OIL & GAS, Inc (POIG)

The Analyst certifies that the views expressed in this report are his own, without undue influence by Source Capital Group, Inc. ("Source Capital"), the subject Company or the future prospects of business between Source Capital and the Company.

The analyst owns stock in the subject Company. Source Capital acted as placement Agent for a portion of the Company's self directed initial public offering. The Analyst has not received any compensation, either directly or indirectly, from investment banking services provided to the Company by Source Capital and does not expect to receive any compensation from such services in the next three months. The Analyst has received direct compensation from the Company for the preparation of this report which is detailed below. To the degree that the analyst receives direct or indirect compensation, it may effect the views expressed in this report.
 
Source Capital and its brokers and investment advisors offer individual account management and 401(k) advisory services for which they solicit the Company, its management and its board of directors as clients. The Analyst may receive compensation in the form of commissions or investment advisor fees from his role as broker or investment advisor to the Company, its management or members of its board of directors. The amount and timing of any indirect compensation received by the Analyst in the form of commissions and/or investment advisory fees cannot be determined at this time.

The Analyst manages a fund for private investors that may buy and sell shares of the subject-Company. 

Source Capital is not a Market Maker in shares for the subject Company. Source Capital will solicit the subject Company for investment-banking services and may receive compensation for such services over the nest 12- months.

Meanings of Ratings:

The ratings used by Source Capital in its Research Reports have the following meaning:

BUY: The Analyst expects the stock price of the subject company to exceed the performance of the major market indices (Standard & Poor's 500 or Dow Jones Industrials) by 20% or more over the coming 12-18 months.

NEUTRAL: The Analyst expects the stock price of the subject company to perform at or near (plus 5% to minus 5%) of the major market averages over the coming 12-18 months.

SELL: The Analyst expects the stock of the subject company to decline or perform worse that the major market averages by 10% or more over the coming 12-18 months.

Rating Distribution: BUY NEUTRAL SELL

Percentage of covered companies assigned this rating 75% 25%

Percentage of covered companies for which Source Capital has Provided investment banking services during the past 12 months. 33% (Two of six companies.)

The Analyst has received direct compensation from the Company for the preparation of the report. Compensation was received before the report was written and the Agreement between the Company and the Analyst calls for the Analyst to maintain full discretion to report his own opinion about the investment prospects of the Company and its desirability for both individual and institutional investors. Compensation consisted of $6,000.00 cash received before the report was prepared; 10,000 shares of restricted stock to be issued and options for 25,000 shares at $2.50 per share and options for an additional 25,000 shares at $4.00 per share.

Research Coverage: November 01, 2004

Research Coverage: April 01, 2004

Contact:

Joe Blankenship 

Tel: 480-368-1488 
Email: jblankenship@sourcegrp.com  

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