Exploration Aurtois Inc. EXTSF

Nat Gas Snuck-Up Last Week

[Tokato]

Although there is general carnage last week, nat gas prices actually snuck-up to $6.75/mmbtu. Storage levels are horrendously high, but last week's injections was well below the 5-year average. That breathed some life. Remember, drilling activity in Canada is way down. Even large companies like PCA will see production fall. That should help the supply side in 2008. Still don't understand why rig counts in US still so high. I guess they are based on longer term programs. But it can't get any better down there. I see nat gas production in N.A. to be flat to down 3% next year. If oil can stay at $70 still think nat gas will be $9 next year and junior oils will be huge $$$$ buying at current price.