Mmarrkk

Bullish Signs from Oil

toobad41: while you are right that "most" gas wells produce some liquids, when you look at the revenue and profits of many predominately nat gas companies, >90% of their revenue/profit comes from nat gas sales. Check out CHK and HK. Oil prices don't really impact them, its nat gas prices, unless we have a good tight relationship between oil and nat gas prices which we haven't see.

Jimbo: not sure where to start with your post. On quickly changing tack from nat gas to oil, its a lot more difficult than you would think. When a company leases acreage/mineral rights in an area that is gas prone, they can't just snap their fingers and start drilling for oil. They've invest millions of dollars in a gas play and they just up and move to an oil play?? Don't think so. Your comments on PUD's are not reall factual, more of an opinion that for the life of me, I can't find any data to back it up. Perhaps you have some?? Since I've worked reserves accounting for years I can see PUDs being developed and moved to PDP all the time.

Bullish Signs from Oil

Quick question: how does a move in oil make for a move in EXCO, Range, etc? These are natural gas producers and while there is a correlation between oil and gas prices, that has been weak as of late. Natural gas is mired in a supply/demand imbalance that has only minimal relationship to crude.