Jim Letourneau's Blog

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Natural Gas Turning the Corner

It is time to take a serious look at natural gas companies.

  • NYMEX natural gas prices are over US$10

  • In
    January 2008, Seymour Schulich purchased 1,800,000 shares of Birchcliff
    Energy (BIR.TO) at a price of $7.50 for his RSP. That raised his
    holdings to 18,800,000 shares. Today it trades at $9.42.

  • In
    February 2008, Kirk Kerkorkian bought 35% of Delta Petroleum (DPTR) at
    ~$19/share (which was a 20% premium to the market). Those shares are
    trading today at $22.71.

  • In February 2008, Canbriam Energy Inc. announced that it entered into
    an equity financing arrangement of up to US$300 million to pursue acquisition,
    exploration and development of oil and gas interests which will initially be oriented toward shale plays.

  • On February 28, 2008, EOG Resources, Inc. announced that the Muskwa shale in remote northern British Columbia holds about twice the gas-in-place per section as the famed Barnett shale in Texas.
PanTerra Resource Corp (PAN.V)
is sitting on a massive shale gas project (37.5 TCF) in Saskatchewan.
The market is revisiting unconventional gas companies and PanTerra will
be a beneficiary.

Listen to President and CEO Fred Rumak

has been using new approaches, like fracturing with gelled propane,
with success. They have documented communication between 3 wells within
a one mile radius and the fractures in older wells are remaining open.