Nat Gas on the Move!Nat Gas up $0.27 to $7.82. Nat gas has been trending up quietly. At the $8.00/mmbtu level many juniors are making good money. Oil has made a big move from low 50's to low 60's, but nat gas is far more important to DFR.
2006 was the year of disappointment for DFR and most juniors. 2007 will be year of positive surprise:
1) Nat gas prices will be much higher on average and should be trending up towards year-end. I expect nat gas to end the year around $9/mmbtu.
2) Many juniors for one reason or another was in exploration phases, which is highly risk, but successes were well below average even for exploration. 2007 will be the year that DFR and others will tap into developing the success initially found in 2006. DFR already off to strong start with great success in Q1. I expect to see significant further increases by Q3 (over 1,500 BOEs/d).
3) Most juniors have set very low expectations, one that they should beat.