Delphi Energy Corp. DPGYF

RE:RE:RE:RE:RE:hwere are ya shambonon??

[jerrybe]

This is not a pure nat gas play. 50% oil and liquids, 50% nat gas in terms of revenue distribution.

I do agree though about the endless supply of nat gas. Very worrisome. 

As for oil, I think the "supply glut" is somewhat overdone. We should see US production dropping by H2. I am not expecting a concerted effort by OPEC. They definitely want the high cost producers (US shale) to take the majority of the hit. 

The worry there is that shale drilling is getting more efficient by the day and the remaining capex dollars are spent on the most prolific plays so the drop in production might not be that important.

For nat gas, we need a serious shift in demand for the stuff before we turn bull again. With the Marcellus and Montney, there is indeed an endless supply of the stuff. PPY and DEE are several examples of firms that have cooled off significantly on their expansion plans. Although, they are still planning to grow.

I have bought too much too early in this downturn. In a matter of weeks, I am already down significantly on some positions, including DEE. 

Another way to put it: Don't try to catch a falling knife.

Still believe a bid for DEE could come in any day from a major with acreage around them and that, long term (2 years out) buying at these prices is a good deal. But it is not a good idea to buy in the hope of takeovers. These takeovers usually happen later in the cycle. Also Artek was a recent example.

GLTA!