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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: tommycanuck who wrote (23375)	6/4/2003 12:35:05 PM
From: Tommaso	Respond to of 206099

As we now see, Paramount is down by 34% on this news; so far I don't see it hitting other royalty trusts. Sounds like the Alberta Board has total control here and that the aim is to protect the oil sands projects. I can't tell if the idea is to reserve the gas for future steam production in getting the bitumen out of the oil sands, or if the gas itself has some effect on the way the bitumen is recovered--either by pressurizing the formation or acting as a thinner for the in situ parts of the projects. It also sounds as if the gas producers have little recourse when it comes to recovering the true value of their lost production. From my point of view, the only good that comes of this is that yet more gas is removed from the market so that gas prices will go even higher over the year. Also, I do have very large holdings of the Canadian Oil Sands Trust, and that should benefit from the protective action of the board. I am not going to sell my Paramount (though I wish I had not bought it), but neither am I buying more.

To: tommycanuck who wrote (23375)	6/4/2003 1:41:48 PM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 206099

Yeah tommy, doesn't sound too encouraging here though. eub.gov.ab.ca Proposed Conservation Policy Affecting Gas Production The Gas Production in Oil Sands Areas policy proposes to shut in gas production from the Wabiskaw-McMurray in about 900 gas wells within the area of concern. Some of these wells are currently not producing. Gas production will be allowed to continue from other geologic zones. Those gas wells currently producing from the Wabiskaw-McMurray account for about 2.5 billion cubic metres, or 90 billion cubic feet (about 2 per cent) of Alberta's total annual natural gas production, or about 30 billion cubic metres, or one trillion cubic feet (about 2 per cent) of Alberta's remaining natural gas reserves. The energy content of the crude bitumen reserves at risk is about 600 times larger than the energy content of the proposed shut in Wabiskaw-McMurray gas production. I dunno but to me the tone says 'Just Walk on By...' Took my lumps this morning... Diversification Diversification Diversification ... A good DD lesson I imagine for any Canadian O&G play. In bitumen country apply a hefty discount and take profits often. Tough to see profits go down the tubes and take a little capital with them but a valuable DD lesson for me. regards Kastel (Nice to se you lurking still :o)