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Lone Pine Resources Inc. Message Board

  • jeffffffffffrey jeffffffffffrey Dec 22, 2012 2:09 PM Flag

    why its down

    I think the real reason it is down is because some people (the market) is starting to realize that natural gas supply is not coming down due to the Marcellus wells being far more profitable than previously thought. Lower rig count has had no affect as of yet. People are starting to realize that maybe natural gas will be in a range between $2.50 (when coal switches) and $4.00. If this is the case, then unfortunately, LPR's gas assets are worthless (until LNG comes online, maybe 4 or 5 years out). The lack of pipelines and other infrastructure is also negatively affecting the company with west texas oil selling below world markets and the edmondton oil selling even lower than that. With continued increases in production, limited refiners, and other constraints, there is a chance oil (LPR's oil) could plunge for a time being (although probably not for an extended period of time). This could potentially end LPR, assuming it happened while natural gas was still low. I am still long LPR, however, am starting to realize there are far more risks than I understood when I first invested. I feel kind of stupid. But on the other hand, I think if the company can survive another couple of years things should get better. Could they please hurry with completing a Canadian LNG facility?

    Sentiment: Hold

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