Tuesday, June 3, 2008

Another PP for a neighbor of Contact Exploration (CEX)

Petroworth announced today a $6 million PP to fund the drilling of horizontal shale gas wells adjacent to Contact's New Brunswick property. This is in addition to recent PP's by Triangle and Corridor. Now all three neighbors are cashed up for the Summer drilling program. If any one of the three hit a nice horizontal well, the frenzy seen in the Quebec Lowlands will move eastward to the Maritime shale play and the lowest market cap company in the play, Contact Exploration.

As expected, the Utica shale plays pulled back today after several days of running up. Look for one more down day tomorrow before a rebound to new highs.

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