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The discovery of three new wells holding trillions of cubic feet of gas pushed Apache to a new 52-week high. But that good news isn’t bankable just yet, the CEO says.
The oil and gas company’s new British Columbia wells “have a big resource potential,” Chief Executive Steven Farris told Cramer, “but it’s not without its challenges.”
Apparently, the gas is hard to reach, and Apache [APA
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] is only in the earliest stages of developing the wells.
There’s another catch: The effort to extract the gas makes sense at current market prices, but if those prices dropped 20% to 30%, the new discovery would be “possibly a marginal play,” Farris said.
Even though the news may not be bankable yet, Cramer said that Farris is – and so is Apache: “This remains the best single natural gas play in the world.”
Watch the video for the “unintended consequences” of mandating ethanol as an alternative fuel.
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