RE: ajootianIn short, yes, at least if you think in the long run. Maybe I'm just too old fashioned. Highpine made some serious coin in 3Q, but they also got an average price of C$72/bbl. I'm not sure how many more quarters they will be getting that much for their oil. Note that if they got the same price for their oil last quarter as they did in 3Q '04, they would have incurred a loss. I'm not saying oil prices are headed back to where they were a year ago, but IMO we have seen the highs for quite awhile.
It would be interesting to see comparative stats of DD&A rates for Canadian companies. Who knows, maybe I'm being too harsh on Diaz. I am coming at this from a US perspective, and, after converting these Canadian DD&A rates to US$ and putting them on a per-mcfe basis (which is the way we look at it here), they certainly appear to be high, especially taking into account the fact that for gas, Canadian companies have to take a healthy basis discount off of US gas prices due mostly to transportation costs.