Celtic Exploration Ltd CEXJF

Wall St Journal: NG below $1 summer

[GEORGESEWEL]

https://online.wsj.com/article/APe0ef301c614a48c19fbbf99a0de95a78.html

It will be no surprise CLT might fall below $5 in due course

[oilandgas111]

I do agree with you and I dont understand how people can still hold CLT at $13 knowing natural gas price is heading under $1/mcf this summer (All the big oil&gas specialists forecast 0-$1/mcf for NG for this summer). You don't need to be Einstein to understand that this stock will be trading somewhere near $5 this summer. At NG under$1/mcf CLT is loosing money on all their wells. This

[teevee]

CLT actually is a strong company with a good balance sheet and break even on nat gas well under $1/mcf, however, if gas gets to $1 or lower, and retail capitulates and starts dumping their funds, the fund managers have to hit any and all bids. With any whiff of that kind of action, start placing the stink bids......

[oilandgas111]

I don't agree with you if they have to sell their NG at 0 or 0.5$/mcf how can they make money ? Many block are just gas prone so if you have to pay for $5MM to drill a well and in return you get 0 for your NG, it is a net loss. NG is Canada is today at $1.5/mcf and going down every day. With NG at 0-0.5/mcf as many predict for this summer this will be Cash Flow negative. Only a part of their

[teevee]

I doubt there are more than only 1 or two energy companies with lower break even costs. That tells me that CLT will be among the few left standing at the bottom. I do agree the share price could get as low as half the current price with nat gas at $.90-$1/mcf.   

[oilandgas111]

I look into further details. In 2011 Celtic production is around 75% Natural gas and 25% liquid. This is very worrisome Celtic is a gas producer and NG price will be close to 0 this summer (NG can be sold in Canada today at around $1.5/mcf and losing 2-3 cents every day) We will see but I am not sure they can survive to a -.5/mcf NG price environement for more than 6 months. The company has close

[teevee]

1)CLT's leverage is amonst the lowest. In spite of that fact, CLT just closed a $150 million convertable debenture to reduce leverage even more (see this mornings news).  2)CLT is in amonst the 5 top companies in terms of lowest cost of production for nat gas (well below $1.00/mcf). If CLT is in financial trouble, the entire industry would be closing down, including the major companies

[oilandgas111]

Of course I am short. I can't understand how CLT is till trading to such high stock price considering NG is heading to 0 this summer and NG is 75% of their production .......

[bigkagan]

if gas goes to zero they will stop producing it and it will go up again. If China wants to buy CLT she better hurry because gas is going up now and so will CLT