Silicon Investor (SI) -- The First Internet Community

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

To: sammaster who wrote (75953)	12/6/2006 8:04:04 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206182

sammaster, I agree that Westside is a resource play. I firmly believe that natty prices will stay above $6, even with a warmer winter than is presently contemplated. One of the reasons I believe this is that I believe most E&P companies would not be profitable with gas below $6, and thus would reduce drilling until prices recovered. Chesapeake Energy, for example, is projecting an '07 DD&A rate of $2.40 to $2.50/mcf. A DD&A rate at this level only makes money at gas prices north of $6. CHK, as you may recall, shut in some wells when natty prices went below $6.