Hey everyone!

I know we're all being quiet as we're just waiting for time to pass which this thing needs but here are some interesting articles!

http://www.dailymail.com/Business/201206170111

The utica in Ohio will create 204,000 jobs by 2015 (directly and indirectly) and not too mention massive growth for a state and surrounding states that were in the slumps.

And this:

http://www.heraldstaronline.com/page/content.detail/id/574396/Utica-shale-worth--13K--17K-per-acre.html?nav=5010

Chesepeake estimates it's utica acreage at $13-17K which is unreal. Now mind you, they are trying to sell 1/4 of their property in the region to reduce debt so they are probably jacking up the price a bit. Don't forget that the utica in Ohio also has liquids which definitely add massive value on top of the gas being the price of oil is much higher. Nonetheless, if we took a 1/4 of that we'd be looking at $3-4K per acre, which let me tell you is a huge low ball.

If some are thinking it's also higher because they have more proven results...it is true but not much drilling has been done at all. Just a few wells but they are doing well. Frankly as discussed before, our wells of 12mmcf/d at St Ed are a solid indication that the utica in Quebec is massive and will be a huge payout once they ramp up. I expect gas prices to be higher than as well...which is kind of nice at the moment that we're not producing with the low prices.

I asked Jason one time if they would sell the utica acerage or the entire company and he mentioned that if they do that (if at the end of the process it is a 'yes'), then the entire company would be sold.

Utica valuation based on a $4K (low) valuation is about $6/share excluding all other assets. The other assets we have are absolutely huge for us and I expect good things to come from them in the next year or so. Montney results obviously showed that.

It's been well over a year into the SEA and I expect them to conclude in Spring 2013 as they said they would. Recently (you can check Mike's blog or google it), they started a service industry in Quebec for oil and gas so they can have local workers. As mentioned before, this is a must to drop prices steeply for drilling and obviously adds to Quebec's economy. The wheels are definitely turning, slowly but surely and our time will come. I expect the SEA to also be drawing up hydrocarbon legislation as they move along so that these things are ready and can be passed along the appropriate government bills etc for approval.

The SP for me and I'm sure everyone here knows that it is super undervalued. $1 is actually a fair value not including Quebec or frankly any of those new assets in the US we acquired. Those latest Montney results brought us up to almost a $1 from $0.65 so you can see what one bit of solid news can do. Very volatile indeed. I fully trust the company to deliver for us while we wait and build up cash for the next year or so.

I've also noticed the Quebec media not writing about shale as much. Kind of weird but I'm guessing even they're getting tired listening to themselves whine on like a broken record :P.

Hope everyone is well and I'll post anything new should I hear it.

Rocco :)