Delphi Energy Corp. DPGYF

RE:RE:RE:hythe? old news though

[jerrybe]

NG at $4mcf are long gone my friend (except for seasonal blips that do not count)...I do not expect them back for at least two years...the Marcellus/Utica monster will make sure of that...you need a serious ramping up of demand and that just takes time. The export facilities are years in the making (not talking about Canada where we talk in decades) and increased demand in North America (petrochemical, etc.) takes years of capex as well...do not assume NG at $4Mcf for a while. My new money is going into firms with higher oil production.

DEE is doing the right thing...hunker down and wait for this massive storm to pass. I am not selling now but I sure should have sold last summer. Not a smart move to have not taken my profits out of this puppy. Good company, wrong sector.

30% of their production is NGL. Of it, half is condensates which is very valuable, the other half (propane, etc.) is not. So we really have 15% of total production that is making Bigstone still profitable at this point in time. It is what it is. We are still profitable, management is living within its means, it delayed its completion of the second well of the year, talk about a complete stall here...at least production costs went down...it would be good if they finally sell Hythe...but like Wapiti, no investments in years so all the metrics might look decent but any buyer can easily double production in no time with a bit of capex in them. Anyhow, the Wapiti sale is good to give us more breathing room on the debt side. A few more millions for Hythe would be a plus too. 

Only takeover news will make this one rebound significantly in this environment. And we really have not seen much activity on that front. I think the XOM of the world are waiting for either more carnage before pouncing or more certainty as to the direction of commodities. Right now, I imagine the oppportunities in Iran are much more enticing if the US manages to sign a deal...poor old Canada...