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Gold/Mining/Energy : DRA - DRAIG ENERGY LTD -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (3)	5/11/2000 10:39:00 PM
From: David Michaud	Respond to of 15

I'll find out about that tomorrow. Either way $1 CF for $2/share is not bad at all. Did you see Founders first quarter CF numbers today? FDE on tse Q1 $0.32

To: kingfisher who wrote (3)	5/16/2000 11:51:00 PM
From: David Michaud	Read Replies (1) \| Respond to 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.