Crocotta Energy Inc CRCTF

Canaccord Morning Coffee on N/G

[cohoe]

Natural Gas (NGAS : NYMEX : US$3.32), Net Change: 0.02, % Change: 0.01%
Got producers? Shares of natural gas producers have had a powerful rally over the quarter, as the price of natural gas posted a
stealthy rally. This move has caught traders off guard, as many thought that entering the injection season, the price of natural
gas may go no-bid. With winter only a few months away and home owners ready to switch on the furnace, the no-bid scenario
appears to be off the table. The U.S. natural gas rig count is also down approximately 75% from highs and approximately 50%
year over year. While gas storage is still high, it appears that producer’s ability to ramp up production in the event of a cold
winter may not be as quick as many had expected. It appears as if these potential events are now being priced into natural gas.
So far, the high quality names such as Peyto Exploration (PEY), Tourmaline Oil (TOU) and Celtic Exploration (CLT) have

been the biggest beneficiaries of the move is natural gas. Other names that have missed the rally could now be playing catch up
include Bonavista Energy (BNP), Crew Energy (CR) and Bellatrix Energy (BXE) on the intermediate side and Cequence
Energy (CQE), Crocotta Tree Energy (CTA) and Delphi Energy (DEE) on the junior side.