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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Natedog who wrote (3882)	8/9/1999 8:58:00 PM
From: Natedog	Read Replies (1) \| Respond to of 15703

Taken from yahoo threadFinancial Post on Natural Gas by: pylan (35/M/Canada) 362 of 364 Strong gas prices expected to keep rising (Financial Post) Gas prices ended last week at a 32-month high and the run is not expected to end soon, which is good for producers but unlikely to put smiles on the faces of consumers. Spot gas prices in Alberta have soared above $3.20 per thousand cubic feet, helping producers such such as Talisman Energy and Northrock Resources to predict record cash flow this year. While strong gas prices, combined with crude's recovery, are pushing up energy stocks, the higher commodity price is hitting residential and commercial consumers in their pocketbooks. Don Hansen, president and chief executive of Northrock, said sweltering temperatures in Eastern Canada and the United States are pushing up demand and reducing the amount of gas injected into storage. Stored gas is withdrawn in winter when demand peaks, so low storage levels bode well for continued strength in prices. Gas prices in Alberta are up 55% from a year ago. "There is no question that prices are strong but it wouldn't surprise me to see prices move even higher," he said. I think the forward market looks pretty good right now, and we're trying to take advantage of it by locking in some floor protection." Mr. Hansen said there is no danger of a shortage as the attractive returns are prompting producers to bring on more gas wells. New reserves cannot be brought on overnight so Mr. Hansen remains optimistic the bull market for gas will continue to run. Sharing that view was Jim Saunders, president and chief executive of Ionic Energy, a junior oriented 92% to gas. "We anticipated winter 1999-2000 would be strong. Most of the winter we thought we would receive $3 to $3.10 [per mcf] and we placed some of our gas north of $3.30," he said. "I'm anticipating you're going to see this thing peak out at $3.40." Distribution companies such as Union Gas and Atco Gas are seeking to pass on their higher costs.