kooks you talked a lot about gas prices and the asumption that...

kooks you talked a lot about gas prices and the asumption that they will increase to a level where we may be able to increase reserves.

I think your take on gas prices is fundamentally wrong. Prices have been diving over 60c or 8% in the last 2 weeks! not only that but we are way way above 5 year storage levels and it the Energy dept forecasts excess 800BCF of gas relative to the available storage. That means more wells shut in and more pressure on prices. Demand is still dropping and there is a huge amount of LNG in the foriegn markets coming on line. Petsec which was one of the companies pato's compared MAE too believes only this week that gas prices will hit $2.50 at HH and the way we are going that looks on the money. There is little hope of prices reachin much above $4 this year at all and next year will likely be th same range 2.50-maybe 4.50. Our reserves will not become viable for years and there is currently no economic forecast that shows what your saying. There is a huge amount of gas in the USA and i just believe that this is the potential risk for mae. We have a handful of productive wells at CC, weknow helper is not viable and that the low number of wells played a role in this. It is unlikely that more wells will be drilled at cc anytime soon by anyone and the fact that the field is relatively under developed makes me think that it proably has tighter margins of production cost. Sure it may be profitable at $4 cc price and stress tested at $2.50 bu it may be only just economical which i suspect. Economies of scale are not on our side and sure someone can get some more reserves but unless they want to develop the field more why would anyone want 12 isolated wells.

Strutter i think there is a positive spin on how your making out the fact there will be an ann and people looking at the co. There has to be an announcement regarding finance next week as their debt is due days after! and two companies are LOOKING at the property. Two is not a lot and doesn't make for bidding war ;o) it doesn't even mean they will make a bid.