3. Advantage Oil & Gas ( AAV) engages in the exploration and production of oil and natural gas at its Glacier property in Alberta, Canada. The company reported second quarter 2011 production of 23,719 barrels oil equivalent per day (boe/d), increasing 22% following the completion of the Phase III development program at Glacier. Management expects Phase IV development work underway at Glacier to drive production growth of 24% over the next one year. Operating expenses for the quarter declined 17%. Increased production and lower costs during the second quarter ensured robust cash flows from operations at $36.6 million, including hedging gains of $6.2 million. The company pegs capital expenditure at $216 million over the next twelve months, with $200 million likely to be invested in Glacier. The company has reduced its overall debt by 64% to $103 million during the past six months. Analysts surveyed by Bloomberg expect the stock to have 73% upside over the next one year. Sixty-seven percent analysts recommend a buy on it.