Fossil Fuels to Play Key Role in Ending Recession



    AJM Releases First Quarter Oil and Gas Price Forecast

    CALGARY, Jan. 6 /CNW/ - 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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AJM PETROLEUM CONSULTANTS

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