Gastem Inc (GMR.H.V)

Went up recently because it has an interest in the Utica shale in the Quebec lowlands. Little early to put hard numbers to it but it has certainly gone from being an economic to potentially hugely economic. Drilling will start in their New York properties in June and Quebec properties later this summer.

The Utica shale in Quebec could be very large. Rather than buying just one stock, you should buy a basket of them. This could include Questerre (QEC-T), Gastem (GMR-X), Junex (JNX-X) and Altai Resources (ATI-X).

This is the biggest player in the low lands area of the St. Lawrence. Over time, the stock could go much higher. In the short term, has had a big run so you have to be wary. If you have the patience and are bullish on natural gas, there is nothing wrong with entering at this level.

Natural gas. Their prospects have been transformed by the announcement from Forest Oil (FST-N) of a discovery in the St. Lawrence.

Forest Oil (FST-N) is exercising their $10 million option to proceed in the Quebec low lands. Very well diversified with 1 million net acres, which is a potentially emerging natural resource base and are building up properties in West Virginia that are producing. Just announced some New York assets.

Very little gas production in Quebec, but it is an emerging area. Spudding shortly. Huge acreage. Should have pretty good shot. Very volatile. Speculative.