Hi Jay -
Even though AVN had a different name, up 300% in four years ...+ dividends. That's my only point.
I believe SJT has drilled more, but not bought more property. Their property is extremely long lived, much longer than the Canadian ones.
However, I would expect that even if gas prices remain at $5.50 USD, 5 years from now ERF would be worth about half (or more) of what it's worth now, instead of net zero.
a) Price Decline was noted early, extensive discussion on Boom Boom Room board, people did get out (I did, mostly, except for SFY in New Zealand, which is another story :-( )
Good question - Natural gas, being hard to ship, is a more local market - price can be $15.00 in California and $3.00 in Wyoming when pipeline gets full. I's mostly priced by US demand and in USD, even if quoted in CDN. I think the forex efffects on pricing are generally much much less than supply and demand. Gas is also hard to store, unlike say copper
New technologies (side drilling, better fracs, chemical treatments, down hole pumps) enhance the recovery from older wells, increasing reserves.
This Thursday may be very interesting - expectations are for >> 100 BcF build, but may come in at 80 Bcf. 100 Bcf builds are need to have enough gas for the winter.
Also, 2 nuke plants are off line for normal maintence in Ontario - will they come back later this month ? |
