GREY:CEXJF - Post by User
Comment by
oilandgas111on Apr 11, 2012 3:47am
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Post# 19779240
RE: RE: Wall St Journal: NG below $1 summer
RE: RE: Wall St Journal: NG below $1 summer I don't agree with you if they have to sell their NG at 0 or 0.5$/mcf how can they make money ? Many block are just gas prone so if you have to pay for $5MM to drill a well and in return you get 0 for your NG, it is a net loss.
NG is Canada is today at $1.5/mcf and going down every day. With NG at 0-0.5/mcf as many predict for this summer this will be Cash Flow negative. Only a part of their land have a liquid mix with their NG and with NG at 0 they are not economic.
The question is more how long can they survive with a NG price at
-0.5/mcf ? My guess is 6 months to 1 year. The problem is those experts doesn't forsee any recovery on the NG market before 2017 when the LNG terminal will be built. There is way too much NG in US/Canada so it is worthless.....
Just my opinion but the future is very dark for CLT.
Any opinion ?