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Gold/Mining/Energy : Strictly: Oil and Gas Exploration Companies
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To: Retro who wrote (6)8/2/1998 5:59:00 PM
From: PuddleGlum   of 318
 
Retro-
... who mentioned that UPR was not going to drill further (assuming no lease maintenance) until prices go up.

Now the big questions are: How many other companies are doing what UPR is doing, and how long will it be before these decisions not to drill begin to impact the market? Maybe just in time for a winter demand spike? It sure would be easier on the nerves if demand and supply maintained a rough equilibrium rather than having all of this price oscillation.

Speaking of price variability, have you noticed how some companies report different prices received for their gas? What factors impact those numbers? I know that THX has hedges in place for a lot of its production through October, and that SFY doesn't hedge. I also know that SFY has what they call "higher quality gas" from some of their wells, and they receive some 15-20 cents or so above market for their gas. How much does geography play into the pricing differential? Canadian producers receive far less per MCF than US producers. Any other factors?

I perceive that the quality of a company's drilling prospects has a significant effect on the stock price. For example, THX has high quality prospects. And Big Dog says (in his newsletter) that VRI has the potential for a big bang from some of its prospects.

Let's get RTQ over here to talk a bit about EVER, which is one stock I wish I could have gotten my hands on a few years back.

pg
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