Toni,
Yes, I saw the activity. Looks like 2 50,000 share buys in there. The big boys are buying this thing at "wholesale" prices, pre-hype, ready to dump into the hype and sell at retail prices, with little downside risk.
Average volume (which I believe is over the last 20 trading days) is 29,000 shares. See the Yahoo detailed quote, which shows ave. volume, at quote.yahoo.com .
The September Nymex nat. gas contract skyrocketed $.14 today, to $2.34. This is extremely bullish given that we are presently in what is usually a pretty dull pricing period for nat. gas. Once we get into August we hit prime hurricane season, and then we start to root for massive hurricanes to go through the Gulf of Mexico and blow out all the production platforms.
If gas prices really do go nutty, even _before the winter, then maybe Andy is right and these guys should look into hedging or selling forward some of their production.
PQUE's gamble on the Valentine field seems to be paying off. Their earlier partner walked away after having paid several million $$$ for the 3-D shoot there. PQUE has been asking all potential JV'ers to ante up for their share of the value of the shoot -- even though that would just go into the PQUE coffers, to be used for other deals. I bet they could have farmed this play out months ago had they not held out for these terms.
So far no one has agreed to these terms, but my bet is that as gas prices rise, there will eventually come a time when some company decides to step up to the plate. The key thing here is that the Valentine shoot has now been completely interpreted and they have several targets that are drill-ready. This kind of play would be much more appealing to a company than one where the 3-D hasn't even been shot yet. |
