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

To: Ed Ajootian who wrote (186266)	11/4/2014 8:03:28 PM
From: isopatch	1 Recommendation Recommended By russet Read Replies (1) \| Respond to of 206097

Ed. <just curious -- how much of your acreage do you believe is likely to get drilled out in a LT sub-$4 natty price environment?> Oh my, no. Where did you get the idea my focus was on undrilled properties? Good heavens, I'm too old and conservative to take on that much risk. Vast majority of my parcels were drilled in the 60s, 70s, 80s, or 90s and have been producing ever since. Settled production with a nice gradual decline curve. In fact, only one property has never been drilled. AFA your article? Am much encouraged after reading it. Hope they're right and prices stay below $4 for at least a few more years. To date? Less than 1/2 the capital I've allocated to mineral properties is invested. Not from lack of trying, since late 2008, either. It's very hard to obtain these properties at attractive prices. At the annual auctions, a year ago (per prior post, some time ago) prices were just ridiculous. Didn't buy a single thing! At the other extreme, nailed down my best buys in Nov 2012 a few months after gas traded at $2/mcf. Why? Because the buyers became bearish and fewer came to bid up prices at the auctions. It's the same ole contrary thinking which works in the stock market. Bottom line? Hope all the locals read the article you posted and don't show up at next weeks auctions..)) Cheers, Iso

To: Ed Ajootian who wrote (186266)	11/4/2014 8:36:06 PM
From: E_K_S	2 Recommendations Recommended By CommanderCricket isopatch Read Replies (1) \| Respond to of 206097

Re: NG Supply & Demand ED The article points out all the supply (same w/ Oil) but at least for Oil it's the world price that eventually drives price. I am looking at the world price for NG/MMBtu : In Europe they pay 2x-3x more than the U.S. and in Asia it is 4x more. There is/was discussion to open up the increase supplies of both Oil & NG to export w/ legislation to allow domestic supplies to be exported. It will be months if not years for the world's market prices to adjust to our growing domestic production but it will eventually happen. I am probably early to the party buying companies with proven NG reserves, Midstream gatherers & processors, pipeline & storage, and even companies w/ exposure to LNG export (export terminals and LNG vessels). Many of these companies have revenues based on "fee" based long term contracts. Now I am added shares of drillers that also have large proven NG reserves (SFY is one of many) that are selling at multi year lows now. When the NG price spread in Europe and Asia is so large, utilities are looking to NG to reduce their carbon footprint and replace nuclear power, and Russian supply continues to be sanctioned, the world's market demand for NG continues to grow but is not reflected in our domestic price. I am not a trader but investor and am looking at the longer term 4-8 years out and continue to be bullish on everything Natural gas. EKS