Hi cesme I was wondering the same. Appears there is more gas coming out of the middle of wyoming than the piplenes can carry. And therefor there is a glut of gas and prices fall. Yesterday prices at opal hub were averaged $2 over the last month have been around $3.50. Whether this will improve, talk of majors shutting in gas, or deteriorate, more supply coming online, I cant tell you. This is why Samson have changed tack and are going to focus on oil. Interesting to note that early on Baxter shale was a 10 mil barrel oil target and then they decided it was going to be a gas play, now I wonder if they all of a sudden try to tell us that it is in fact an oil play. My understanding is that Longer term there is good news in that a new pipeline Rockies express and an extension Overthrust to Opal are due to come on line at the start of 2008.
Amber gasfield is effectivley at henry hub prices
Also they had to write down a significant amount of reserves. Jonah and lookout wash not performing in line with expectations Greens Canyon 2 did not work so they those reserves were lost for the time being. Terry Barr returns from America at the end of the month so I will try to get in contact to find out more. I am interested to find out what the current drilling plans are going to be I would suggest there will be a number of acquisitions to look forward to. How they fund them is the real question.
Short term things could be rough. longer term I think things will turn out pretty good.
This is only my interpretation. there may be other problems I am unaware of. Hope this helps. Cheers Davo22
SSN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
