In a chat today with Warren Verbonac oil and gas analyst
with Octagon Securities he mentions how brave a person
has to be to make predictions on prices for natural gas
down the road. Particularly with all the potential of shale
gas these days. As far as oil though he feels more certain
about predicting $60 for July 1st this year and $65 by
Christmas and he makes a very important point about that
price.
With the companies cutting back dramatically on their
costs and in a totally new environment he suggests that a
company these days might do as well at $60 oil as a year or
two ago at $80 oil. “Costs are simply down dramatically
just about across the board.”
As far as stock picks Verbonac has his eye on the North
Sea liking stocks such as Antrim, Ithaca, and Sterling suggesting
these juniors have done much of the work and
wonders why some of the big guys with big bucks simply
don’t just take them over. He might be onto something
look at the huge volume today on Ithaca and Antrim
dyodd imho