ERHC Energy Inc (ERHE)

[mrogop]

red

just use dollars per mcf vs. per bbl and you will come up with the current number.

it is skewed adversely because of the current oil price which is not remotely tied to fundamentals...it has become a financial asset class and a proxy for the dollar. it is traded blindly dollar down oil up and vice versa...does one think the fundamentals from yesterday (oil down to 78+-) and today up to nearly 80.00 changed that much in 24 hrs...it's price has nothing to do with fundamentals now.

the old rule of thumb was 6:1 gas to oil....then 8:1 and now 16:1. the old ratios were fundamentally based...

1MMCf=$5.000 compared to 62.5 bbls at $80

put differently if the 8:1 ruled today natgas would be $10.00