APR 10 MARKET UPDATE

STORAGE REPORT
This week’s EIA storage report for the week ending April 9, 2010:
This week’s injection of: 87 Bcf
Leaving this week’s balance at: 1756 Bcf
This week’s balance last year: 1692 Bcf
This week’s balance, 5-yr average: 1510 Bcf

The build was slightly above expectations. This marks the fifth consecutive week of inventory data that has been bearish when compared to the five year average.

THOUGHTS ON THE MARKET

The drilling rig count increased to 1,491 adding 15 more rigs last week, as some projects must be drilled just to maintain leasehold ownership rights.

If budget certainty is important to you purchase gas for up to the next 12 months anytime the prompt month trades below $4.00. History favors a price increase during quarter two. Twenty years ago this month, the NYMEX began trading natural gas. Today, it is the benchmark for gas pricing and the 2nd highest volume futures contract on the exchange, averaging 226,000 contracts per day.