SOURCE: Topaz Resources, Inc.

Topaz Resources, Inc.

June 16, 2010 16:00 ET

Current & Forecasted Natural Prices Reinforce Topaz Strategy

DENTON, TX--(Marketwire - June 16, 2010) -  Topaz Resources, Inc. (OTCBB: TOPZ), an independent oil and gas company ("Topaz" or the "Company"), today commented that current and forecasted prices of natural gas are providing significant reinforcement to the Topaz acquisition and development strategy.

Increasing demand for natural gas has seen the price of natural gas increase to over $4.50 per Mcf on the Henry Hub exchange, which sets the prices for the sale of natural gas produced by Topaz. Industry forecasts supported by the Henry Hub Natural Gas Futures (see www.cmegroup.com/trading/energy/natural-gas/natural-gas.html) predict that natural gas prices will continue to climb to over $5.00 per Mcf this year and to a range of $5.50 to $6.00 per Mcf during 2011.

During late 2008 and 2009, the oversupply situation resulted in natural gas prices that hit sub-$3.00 per Mcf levels. Between the 3rd quarter of 2008 and the 1st quarter of 2009 the U.S. rig count plummeted by 50%. Natural gas prices have recovered recently to over $4.00 per Mcf as the markets anticipate that even a minor economic recovery could cause a rapid increase in prices. A fundamental analysis indicates that longer term prices of $7.00 to $8.00 per Mcf will be necessary to increase the rig count and to replace supply.

"These increasing prices have reinforced our acquisition strategy, which we expanded when natural gas prices were below $3 per Mcf," commented Ted Munden, President & CEO of Topaz, who then added, "We are encouraged by the continuing natural gas price stability, noting we built and then sold our previous Nasdaq listed oil and gas company for over $150 million when natural gas prices were less than $2 per Mcf and oil prices were less than $18 per barrel."

About Topaz Resources

Topaz Resources is an independent oil and gas company focusing on production, acquisitions and developmental drilling opportunities within proven producing areas of north, central and west Texas. 

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Natalie Bannister
    Investor Relations
    573.631.2193
    Email Contact