RE:Condensate prices strong, very strong The creditors may well have their eye on rising gas prices, which should work in Bonavista's favour. AECO prices have rallied significantly heading into winter and are now approaching $3. Alberta's gas storage levels are also extremely low, adding to producers' hopes that prices will keep heading up.
Rising gas prices will also be good for Alberta Montney producer Advantage Oil & Gas Ltd. (AAV), whose production is around 90 per cent gas. Although the stock edged down seven cents to $2.38 on 2.6 million shares today, it is still up from $1.90 a week ago, on gas price optimism and the release last Thursday of its third quarter financials (which showed production of 42,080 barrels of oil equivalent a day and cash flow of 15 cents a share, in line with analysts' predictions). President and CEO Andy Mah tried to keep the excitement going during a BNN appearance yesterday. He said the Alberta gas sector is seeing "green shoots" of interest from investors. This is partly thanks to recent changes to TC Energy's NGTL system, the largest gas pipeline network in the country, which put in place a new TSP (temporary service protocol) that eased storage restrictions as of Oct. 15. The effect was immediate: AECO gas prices, which began October at 90 cents, shot up to an average of $2.60 over the last two weeks of the month. Mr. Mah noted that NGTL is scheduled to undergo an expansion next summer, which should provide further price support.
From Carswell on the IV board. Things are looking very good for PIPE for 2020.