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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (46860)	3/2/2012 8:59:25 PM
From: E_K_S	Respond to of 78507

Re: IONA ENERGY INC (IONAF.PK) Paul good analysis. The thing that catches my attention is Europe is dependent on a lot of their NG deliveries from Russia via various pipelines into Europe. There have been lots of political disagreements between the countries that have (and in the future) will affect the price and the delivery of that NG into Europe. I do not want any of that Political risk. The NG from the North Sea is a different story. There is already a huge network of NG pipeline infrastructure from the North Sea to Europe. Therefore, there is less political risk with your source wells located in the North Sea. For me, that is the only reason I would look outside the U.S. and/or Canada for investing in any foreign NG E&P. Also, the U.S. continues to maintain their tight NG export rules limiting permits to develop LNG terminals, charging high tariffs and basically constricting any new future developments to export domestic NG outside the U.S.. This for me is an interesting play. A company w/ a $296M Enterprise value is still on the smaller size. My last venture w/ a small E&P w/ exposure in Europe was a disaster w/ Talisman Energy Inc. Common Sto (TLM). Basically their whole European venture was a dud (before the opportunity for fracking) mainly because of the political issues w/ Turkey and getting their gas from their offshore wells into the distribution system. Don't remember all the details but it seemed like one problem after another. Took a 50% loss on that one. EKS