The Seven Investment Virtues Of Natural Gas (NAPSA)}—Whenit comesto natural gas stocks, many investors believe the opportunity for profits is alreadyin thepipeline. At last count, 65 percent of homes in the U.S. heat using natural gas. The U.S. Energy Secretary’s oil and gas advisory committee recently forecast that natural gas use could grow by about 30 | lest Lee ee percent in the next 10 years. Manyexperts contend that natural gas—becauseofits versatility, ease of production and minimal impact on the environment— should be thought of as the cleanburning fuel of choice in the U.S. Here are seven factors that some investment pros say make owning natural gas stocksa virtue. There has been a dramatic rise in the demand for natural gas. Predictions are for an increase in this demand in the future. Demandis currently outpacing production capabilities. Clean air legislation that establishes natural gas as the “fuel of choice.” Decreased deliverability from the U.S. Gulf of Mexico. * Decreased deliverability of Canadian imports. Less gas storage. Clearly, with increased demand and diminishing resources, one investment strategy is to identify what are described as junior resource companies—companies that still present opportunities for growth—that have the capacity to bring added production online and are willing to use the profits from successful wells to fuel their own growth. Of particular interest are companies that produce gas from beds of coal bed methane, or CBM. It’s believed the meaningful develop- lg |) Experts say the exploration of coal bed methane represents the next phase in developing this country’s natural gas resources. ment of this country’s CBM resources could represent a significant addition to our domestic energy production, while creating new jobs. Plus, it would be available long before any Arctic offshore pipelines are built and operational. For example, one such company may be Lexington Resources, Inc. The company’s management has set up a comprehensive drill and development program designed to expand companyparticipation in some of the most productive areas of the country. These development efforts are said to use environmentally suitable methods. The companyplans to seek out known reserves and looksto drill quickly at very low cost. If successful, this approach may strengthen cash flow and add to an already escalating asset base, which in turn could give the company access to other coal bed methane opportunities. Lexington Resources, Inc. trades in the over-the-counter market under the symbol LXRS. To learn more, visit the Web site at www.lexingtonresources.com.
