Replies to post #306 on Buccaneer Energy Ltd. (fka BCGFQ)

[Bobwins]

prices you quote $22/mcf are short term winter only prices. They last for a few months. Japan is paying $14/mcf routinely while Buccaneer just announced that they are getting 6.80 for KL4 production from March to Sept 2013 after getting $6.19 for KL1 production up to 5mmcfpd. Seems like there is still financial incentive to export LNG IF the export plant is reactivated AND Buccaneer can demonstrate sufficient production to fill local needs(both residential and industrial)AND use more than a token amount of export plant capacity.

[DeepDownResources]

Well, that is debatable. First those prices only occur in the winter months and it remains to be seen the affect Hilcorp will have on the gas market now that they own the Marathon assets. Second, anytime you are encouraging independents to come and drill you must provide a robust market.

Alaska currently provides the initial incentives. Strong local market, ACES rebates on exploration, an ever improving permitting situation. But to make the market truly stable a robust future market needs to be planned for.

The maritime highway needs to be converted to natural gas, the LNG plant must remain a viable option, the Fairbanks natural gas situation needs to be solved with a Cook Inlet solution instead of a North Slope solution. The fertilizer plant needs to be brought back into operation. With lots of market, incentives become less important and stable long term profits assure a robust local market.

So is LNG important, yes. Does it need to be working today...probably not. Is Parnell making the right moves, yes. Is he moving far enough, fast enough. Probably not.