To All:
More positive news for NG and the Strachan area.
March 3, 1999
Bullish on Natural Gas and Foothills Drilling at Raymond James & Associates, Inc. Conference
At the 20th Annual Raymond James & Associates, Inc. investment conference in Orlando, Florida, it was said prospects for the exploration and development of Canadian natural gas reserves have never been better given the pending 20 percent increase in Canadian natural gas pipeline takeaway capacity implementation which commenced November 1, 1998 and will be completed November 1, 2000.
Expansions of the TransCanada, Northern Border and Alliance Pipelines will amount to 2.6 (Bcf) billion cubic feet per day of additional natural gas takeaway capacity from Western Canada to new markets by November 1, 2000, of which approximately 50 percent has been completed. "This additional takeaway capacity has resulted and will continue to result in record Canadian natural gas prices accruing to producers at a time of depressed oil prices when drilling levels are at record lows that will not be able to supply increased natural gas demand. The true winners to emerge from this environment are companies, who have maintained their focus on developing long-life natural gas reserves and deep-basin, high-deliverability natural gas exploration plays to extend through this exciting phase of the Canadian natural gas market where the opportunity to invest in Canadian natural gas stocks has never been better during the past 20 years."
In terms of 1999, companies in the industry are poised for record growth during 1999, with one of the largest undeveloped land positions in the Foothills of Alberta, an area of Western Canada, which is expected to contain approximately 47 percent of Western Canada's undiscovered natural gas reserves estimated to be 122 (Tcf) trillion cubic feet of marketable natural gas.
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