Lightstream Resources Ltd. LSTMF

RE:RE:if last time is indication

[eliner63]

Anybody who thinks they know where prices will be in 6 months is just forming an opinion, nobody really knows.  The deeper the cut maybe better for LTS than a 50-60 dollar range for an extended period, as deeper creates a stronger rebound. 

Some think this will happen in March, some think May, but for sure it will happen. It does take a few months to see the effect of decreased drilling, but when it happens we will probably say things have gone too far and can expect some much higher prices 6 months out. Drillers are faster to cut back than to increase drilling.  In 2009 we didn't see a noticable recovery in drilling until WTI held 75/bbl.

Work has really slowed for us in Texas/Oklahoma, but still need significant trimming in horizonal drilling.  Also cutting out a rig in a marginal field has less impact to overall production, so with each week of cutting the impact is higher.  I think we need US horizontal rigs close to a1000 before a real turnaround happens.