Chinook Energy Inc. Common CNKEF

Stay Away from Dry Gas

[auburn2]

"Elsewhere in the Alberta Montney, Front Range Resources Ltd. (FRK) had a miserable day, plunging 14.5 cents to 14 cents on 2.53 million shares. Its second exploration well at its Pepper property has shown itself to be just as disappointing as the first. Investors will recall that the results of the first well sent the stock down to 48 cents from 88 cents on Jan. 11. This was not because the well found nothing; in fact, it flowed five million cubic feet a day of gas. The problem was that it failed to recover any much-desired liquids. Front Range tried to find a silver lining. It pointed out that dry gas can still be sold, and suggested that its second well would have better results because it would be a re-entry of an older well that found both gas and liquids. Unfortunately, the results that arrived today were just as disappointing as those from January. The second well has tested at 4.36 million cubic feet a day, not as high as January's discovery. Unlike January's well, this second well also dribbled a little bit of oil, painstakingly pegged by Front Range at 1.25 barrels a day (every decimal point counts at these tiny rates). Even so, this is basically another dry gas well, and therefore another disappointment for Front Range's investors."

Doesn't that say it all?