The median share price of publicly traded junior oil and gas companies operating in Western Canada fell 12% in the first five months of 2006, a report released Friday shows.

The trust sector didn’t fare much better either as the median unit price of conventional oil and gas trusts in Western Canada slipped 6% over the same period. Even when monthly cash distributions are included in the calculation, the median unit price of the trusts slipped 2% from January to May 2006. The first week of June has seen even further declines for oil and gas investors.

The quarterly iQ Report by Iradesso Communications, a Calgary-based investor relations firm, tracks the performance of publicly traded energy trusts and junior oil and gas companies that operate primarily in Western Canada. To be included in Iradesso’s comparison, the juniors must have production between 500 and 15,000 barrels of oil equivalent per day, while the trusts must focus on conventional oil and gas production.

As a group, the 90 junior oil and gas companies have a median weighting of 69% to natural gas production versus crude oil. The 32 conventional trusts are less focused on natural gas with a weighting of 57%. Since oil prices have held strong while natural gas prices have slipped, the junior grouping have taken more of a hit.

“Contrary to popular belief, oil and gas stocks haven’t been overheating so far this year,” said Peter Knapp, president of Iradesso. “Higher service costs, a strong Canadian dollar and lower natural gas prices have caused a healthy pullback in prices. If you are a net buyer of oil and gas stocks and units, this isn’t necessarily a bad thing. For the long-term investors in our energy market, there are opportunities created by these cycles.”

Although most juniors and trusts have experienced declines on the stock market in 2006, stock pickers could have made money in 2006 by holding 18 of the 90 junior companies. The top three gainers over the first five months of 2006 were RSX Energy Inc. with an 83% gain, Mission Oil and Gas with a 72% gain and Canada Southern Petroleum with a 37% gain, due to recent unsolicited bids.

The juniors that experienced the biggest pullbacks in the first five months of 2006 were Deep Resources Ltd. at -64%, West Energy Ltd. at -47% and Berens Energy Ltd also at -47%.

Including monthly cash distributions, the oil and gas trusts that produced the highest return for unitholders in the first five months of 2006 were Petrofund Energy Trust at 41%, Baytex Energy Trust at 41% and Bonterra Energy Income Trust at 29%.

Among trusts, the largest declines in unit prices net of distributions in the first five months were experienced by True Energy Trust at -25%, Vault Energy Trust at -23% and Thunder Energy Trust at -21%.

In addition to tracking share prices and unit prices, Iradesso’s iQ
Report compares statistics for juniors and trusts ranging from cash flow multiples to changes in quarter-over-quarter production levels to reserve life indices.