Delphi Energy Corp. DPGYF

Commodity Price Breakout

[Tokato]

Nat gas solidly above US$8/mmbtu. Right now up $0.30 to $8.18/mmbtu. Crude oil also strong at US$66.30/bbl, up US$1.22/bbl. The oil/gas differential is 8.1:1. Still way too far away from the normal 6:1 ratio (which is heat equivalent ratio). I'm expecting the ratio will narrow to at least 7:1 by Q4. At US$66/bbl that would mean gas at US$9.50/mmbtu. The rising C$ has dampend some of the price gains that's for sure. But gas at US$9.50/mmbtu with C$1.00/US$0.95 = C$10, which is better than the previous US$7.00/mmbtu with C$1.00/US$0.85 = C$8.23. The break-out at gas has started. The large cap stocks have made a big move - that's because they tend to be "oily". Juniors tend to be gassy. Juniors ready for big run from super low levels.