DRA - DRAIG ENERGY LTD Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : DRA - DRAIG ENERGY LTD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kingfisher who wrote (3)	5/16/2000 11:51:00 PM
From: David Michaud	Read Replies (1) of 15

According to DRA's 2000 capital program, approx. 60% of the 2400 boe/d production forcast (95% gas) has been forward hedged @C$2.80/gjoule. (dated Dec 20/99). However, Natural gas prices are extremely strong at the moment and this trend is expected to continue well into the future. There are currently not enough gas wells being drilled to maintain critical storage levels which should lead to continued upward pressure on the price of natural gas. The Alliance pipeline is also expected to be completed by October 2000. This will allow Canadian companies to ship gas to the U.S. where pricing is much higher. The U.S. government is dramatically increasing natural gas consumption as an alternative energy source. This should also impact the demand for natural gas in North America. We may see some short-term volatility but the situation looks great for natural gas producers at the moment. In conjunction with higher oil prices, producers have really never had it any better and investors are finally starting to wake up to the positive outlook for the energy sector.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next