last call....., page-2

re: last call.....(additional data on us ng situat IMO PSA has to be one of the best shares for a ris/reward situation.

I ask myself why are the shares so cheap?

Is it selling before the end of the tax year?

Does someone need the funds so bad that they have to sell despite the good fundatmentals?

has the market overlooked a bargain?

Whatever the answer is, I don't know and have given up trying to understand why....

For those following the NG story in the US, comes the following psot from the CWEI board:

"In my opinion, storage is just a small part of the equation (when full it represents less than 15% of our annual usage). We ended withdrawal season more than 350 bcf ahead of the prior year. It sounds like a lot, especially when you read that storage is 50% higher than the prior year(many journalists and analysts like to spin it that way). Wow! 50% higher!

Lets put this in perspective. Yes storage is 52% higher at the end of the withdrawal season, but that surplus represents approximately 1.5% of total demand. The more important factor is the trend as robry has been pointing out to us for years. I present this as another way to “Look” at the current situation

Storage April 2, 2004 = 1034
Storage March 28, 2003 =680
Surplus =354
Weeks in injection season =31

INJECTIONS NEED TO BE LOWER BY (11.42) bcf per week to close the gap
………..Inj…..PY Inj…
4/9/04….15…..(48)…..+63
4/16/04…28….61……(33)
4/23/04…78…57…..+21
4/30/04…72…87…..(15)
5/7/04…..76…72…+4
5/14/04…85…90…(5)
5/21/04…89…95…(6)
5/28/04…87…114…(27)
6/4/04….102…125…(23)
6/11/04…94….114…(20)

Average YTD (4.1) Month lower injection

Looks like injections season to date are approximately 7 bcf per week stronger than needed to close the gap. This is largely due to the large withdrawal we had last year during the first week of April. The last three weeks have closed the gap well above the (11.42) required. The next three weeks should beat (11.42) by a wide margin as well.

On July 1, we lose 123 mmcf per day in Alberta. I believe we will begin to see the effects of Low Snowpack and low reservoir levels in the West by Mid July. We may also begin to see the effects of a tight coal market by Mid July and it may be more pronounced by mid August. Especially since the Ohio River will be closed to barge traffic to repair a Locke, which will hinder barge traffic. Not to mention higher electricity consumption that is widely expected.

I do not know if we will actually see a withdrawal this summer, but I am betting that injections will be lower by (15) bcf week on average, unless the crude market weakens materially (which I do not expect, sorry Kudlow and Fred). This will put storage at a lower level than last year “and” will also represent a supply demand imbalance of more than 2 bcf per day heading into heating season. I will update this schedule on a weekly basis."

Also there was a post that indicated that California Hydro was only at 85% of normal and pacific Northwest at 75% of normal.

Another poster indicated that after the Thursday storage report comes out, all the NG futures contracts will be in the $7 or $8 range.....