Long Run Explor Ltd Ord WFREF

RE:RE:Expect some short term volatility… not out of the woods yet.

[JohnJBond]

From stockwatch

The Financial Post reports in its Saturday, Jan. 10, edition that Long Run Exploration chief executive officer Bill Andrew has been through every kind of business cycle. The Post's Claudia Cattaneo writes that Mr. Andrew says: "For companies like our own, that are guilty of poor timing on acquisitions and made acquisitions early last year, before prices dropped, it's just a matter of living to find another day. You trim your capital program and make sure you are trying to capture any cost efficiency." Mr. Andrew says if the turn down in oil prices lasts "longer than six or nine months, and we are into a new paradigm of low oil prices, the cost side is going to follow." He notes that oil companies have already aggressively started to cut budgets. He says: "If these conditions continue through the first quarter, we will virtually be shut down through the summer as an industry. If we are sitting in April at $48 oil and $2.85 or $3 gas, a lot of companies will say: What is the point? Why drill, if it's costing you $15 or $20 to add a barrel, and your netbacks are less, and there is no room for risk, and there is no return on your money?" He says, "Once you get burned, you are reluctant to ramp up and get going."