New Frontier Energy to Benefit From Rapid Development in the Atlantic Rim

E&P companies continue rapid development of the Atlantic Rim CBM area moving into 2008. Oil and Gas Investor magazine highlighted New Frontier Energy’s (NFEI.OB) Slater Dome CBM operations in the December 2007 issue. Double Eagle Petroleum (DBLE) completed 33 new wells during the fourth quarter in the Catalina Unit. Anadarko Petroleum (APC) has 69 additional wells underway in the Sun Dog Unit expected to be completed by March 2008. Warren Resources, Inc. (WRES), also active in the region, announced a new $250 million credit facility to help fund development of their Atlantic Rim CBM project.

Last week, BMO Capital Markets raised Warren Resources to market outperform sending their shares 17% higher on the news. Shares of the leading natural gas producers such as APC, XTO Energy (XTO), Chesapeake (CHK) and Southwestern Energy (SWN) are again pushing on 52 week highs, an indication that investors outlook for natural gas producers is brightening heading into 2008.

Will more investors discover New Frontier Energy in the year ahead - one the few independent operators with a large acreage position in the Atlantic Rim play? Currently, NFEI has 9 wells producing approximately 1 million cubic feet of gas per day at the Slater Dome field where the company has a 66% working interest. The 2007 drilling program, which nearly doubled the company’s well count, is expected boost production sharply during the first half of 2008 as new wells begin producing into the pipeline. The next reserve report indicating results of the 2007 drill program is expected in the March 2008 timeframe. Remember to invest your time in some due diligence before investing your money. More information is available at the NFEI website.

Disclosure: Author has a long position in NFEI

Comments

[bigjoe12345:]

you should also disclose that the company is a client of yours!

2008 Jan 02 01:13 PM