AJM Petroleum Consultants

AJM Petroleum Consultants

January 06, 2009 23:59 ET

Fossil Fuels to Play Key Role in Ending Recession

AJM Releases First Quarter Oil and Gas Price Forecast

CALGARY, ALBERTA--(Marketwire - Jan. 6, 2009) - AJM Petroleum Consultants released its first oil and gas price forecast for 2009 with the prediction that short-term prices will remain volatile as fossil fuels play a key role in helping the world climb out of recession.

"While we've seen a drop in demand for fossil fuels, Americans are being lured back to the roads with gasoline sitting at US$1.70 or lower per gallon," observed Ralph Glass, AJM's Vice President of Operations. "If President-elect Obama's plans to put America back to work through infrastructure revitalization begin to materialize, fossil fuels will be the engine driving the Americans to prosperity. Factors like these suggest that crude oil is currently at its bottom average price, and a climb is soon to begin."

Mr. Glass believes that while external forces will continue to cause near-term volatility and oscillation in prices, basic supply and demand and the cost to bring on new production, will provide a truer picture of oil and natural gas pricing for forecast purposes.

AJM's Q1 2009 price forecast, established effective December 31, 2008, shows crude oil prices in constant dollars based on a WTI forecast of US$55.00/bbl for 2009, rising to US$75.00/bbl in 2010, then reaching US$100.00/bbl by 2013 and holding at this level for the balance of the forecast. The AECO US NYMEX natural gas price in constant dollars is expected to average US$6.50/Mcf in 2009, rising with oil to a long-term price in 2013 of US$9.50/Mcf. The Canadian priced AECO forecast is expected to average C$7.00/Mcf in 2009 rising to C$9.00/Mcf in 2013, corresponding with the expected recovery of the Canadian dollar over the same period. Complete forecast tables, commentary and documentation for AJM's December 31 Price Forecast are available for download on the AJM Petroleum Consultants website at www.ajmpetroleumconsultants.com .

AJM Petroleum Consultants, a privately owned Calgary-based company, has extensive experience in corporate reserve evaluations, acquisition and divestiture evaluations, and evaluations of unconventional reserves such as coal bed methane, tight gas, shale gas and bitumen/heavy oil. Diverse engineering and geological capabilities combined with a forward-thinking approach to technology have allowed AJM to provide innovative solutions to clients in the upstream sector of the oil and gas industry in Western Canada, North America and internationally. Over time, the company's price forecasts have proved to be more realistic than others in the industry.

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