Pescod asks is Natural Gas finding a bottom?

For anyone who has been through the markets over the
last year, you know we’ve experienced something the likes
of which hasn’t been seen in a few generations. Not every-
one agrees that we are going back to more normal times—
whatever they are, but for those who were brave enough
five and six months ago to tiptoe back into the market, aver-
age down or whatever, there have been some amazing re-
wards.

At least for those stories that didn’t go bankrupt,
there have been some amazing rewards.

We’ve seen everything from base metals to oil to trans-
portation companies to you-name-it rebound significantly in
the last while, but there are two sectors that we have yet to
see much joy return. One is uranium and the other is natu-
ral gas.

If anything, natural gas has been steadily getting worse.
That doesn’t mean there is a lack of interest though be-
cause everyone assumes if you could figure out the bottom
for the gas cycle, there will be some abundant rewards
there as well.

One key is the absolutely outrageous volume being
traded on natural gas ETF’s, which tells you there are more
than a few people trying to pick the bottom.

For some thoughts on natural gas and when to get ex-
cited, we go to Doug Bartole, the well thought of President
of Vero Energy, one of the lower cost producers in the natu-
ral gas field.

Bartole’s first comments to us is about how it
has been the first of times...first of all, with so many drills
turning, so many wells drilled both in the United States and
Canada, it just provided the huge supply and then with the
economic landscaping getting lambasted, hitting industrial
demand, and now he points out we’ve even had a cool sum-
mer which has meant not many in Chicago, New England or
Eastern Canada have needed to turn on the air-conditioners
on at all.

As the key for investors as to when to get into the mar-
ket, Bartole looks at one number and that’s the number of
rigs that are turning. “It’s all about the rig numbers” he
suggests and he is rather frank in suggesting he wouldn’t
mind seeing gas in the $3.50—$4.00 area for a while as it
would keep the rig counts down.

In the meantime, for the second quarter he can see a
drop of natural gas supply in the United States of as much
as 4 1/2 to 5 BCF by the second quarter next year and 1 to 1
1/2 BCF in Canada because of current decline rates of al-
most 30% from producing wells.

Some of the excitement from the shale plays in the
United States which has caught the market’s attention he
also suggests are interesting because they produce big
flush production that sees dramatic drops in that produc-
tion.

Gusella sells out shareholders again

Petrolifera shares drop after equity offering plan

Thomson Reuters


TORONTO, Aug 13 (Reuters) - Shares of Petrolifera Petroleum
fell almost 20 percent on Thursday after the small,
Canadian-based energy company unveiled a plan to offer up to
C$50 million ($45.9 million) in common share and warrants.

Petrolifera, which operates in Argentina, Colombia and
Peru, was down 25 Canadian cents at C$1.09 in afternoon trading
on the Toronto Stock Exchange. The stock has fallen in the past
year from a high of C$5.84.

Calgary-based Petrolifera said it planned to use the
proceeds from the offering to help fund its exploration program
and reduce debt, as well as for working capital.

Common equity offerings can dilute the existing shareholder
base, which can then cause the market value of the shares to
drop.

($1=$1.09 Canadian)

PDP Surprises No One With This Offering After Price Collapsed from $3.50 1 mth ago

Petrolifera announces equity offering

cnw


CALGARY, Aug. 12 /CNW/ - Petrolifera Petroleum Limited (the "Corporation" or "Petrolifera" - PDP - TSX) is pleased to announce that it has filed a preliminary short form prospectus in each of the provinces of Canada, other than Quebec, in connection with a public offering (the "Offering") of units ("Units") of Petrolifera for aggregate gross proceeds of up to $50 million. Each Unit will consist of one common share in the capital of the Corporation (each, a "Common Share") and one-half of one Common Shares purchase warrant of the Corporation (each whole Common Share purchase warrant, a "Warrant"). The Offering will be conducted through a syndicate of underwriters (the "Underwriters") which will be led by Thomas Weisel Partners Canada Inc., Cormark Securities Inc. and RBC Capital Markets. Pursuant to the terms of the Offering, the Corporation has agreed to grant the Underwriters an over-allotment option to purchase additional Units equal to up to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering.

The Offering will be priced in the context of the market with the final terms of the Offering, including the terms of the Warrants, to be determined at the time of pricing. The net proceeds of the Offering will be used by the Corporation to fund a portion of its exploration capital expenditure program, primarily in Colombia during the balance of 2009 and into 2010, to reduce indebtedness relating to the Corporation's reserve-backed credit facility and for working capital.

The Units will be sold publicly in each the provinces Canada, other than Quebec, on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "1933 Act"), in the United Kingdom in accordance with applicable local securities legislation and regulations such that no prospectus, registration statement or similar document is required to be filed in any such jurisdiction and such other jurisdictions as may be agreed to by the Corporation and the Underwriters. The Offering is scheduled to close on or about August 28, 2009 and is subject to certain customary conditions and regulatory approvals, including but not limited to the approval of the Toronto Stock Exchange.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Units offered, including Common Shares and Warrants which comprise such Units, have not been, and will not be, registered under the 1933 Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.


Petrolifera Petroleum Limited is a Calgary-based crude oil, natural gas and natural gas liquids exploration, development and production company with operations in Argentina, Colombia and Peru. The Corporation's main production platform is at Puesto Morales Norte in Argentina. Extensive undeveloped lands are held in all three countries, including three licenses in Peru and three blocks in Colombia.


Forward-Looking Statements: This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the proposed use of proceeds of the Offering. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. Completion of the proposed Offering is subject to certain risks and uncertainties including market risk with respect to marketing and pricing of the Units, receipt of all required regulatory approvals, including from the Toronto Stock Exchange, completion of due diligence by the Underwriters and the satisfaction of all conditions to closing. For a description of the risks and uncertainties facing Petrolifera and its business and affairs, readers should refer to Petrolifera's Annual Information Form for the year ended December 31, 2008. Petrolifera undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.


For further information: Richard A. Gusella, Executive Chairman or Kristen Bibby, Vice President, Finance and Chief Financial Officer, Phone: (403) 538-6201, Fax: (403) 538-6225, inquiries@petrolifera.ca, Website: http://www.petrolifera.ca/

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These Days Markets Feel Like 1 Tequila Over The Line

Tequila (Spanish pronunciation: [teˈkila]) is an agave-based spirit made primarily in the area surrounding the city of Tequila, 65 kilometres (40 mi) northwest of Guadalajara, and in the highlands (Los Altos) of the western Mexican state of Jalisco. The volcanicsoil in the region surrounding Tequila is particularly well suited to the growing of the blue agave, and more than 300 million of the plants are harvested there each year.^[1] Mexican laws state that tequila can be produced only in the state of Jalisco and limited regions in the states of Guanajuato, Michoacán, Nayarit, and Tamaulipas.^[2]

Tequila is most often made at a 38–40% alcohol content (76–80 proof), but can be produced between 35–55% alcohol content (70–110 proof).^[3]