Dow Jones 10598.81 +10.81 10:36 am PST, March 05, 2004  NASDAQ 2051.03 -4.08 For info, visit access.smallcapnetwork.com S & P 500 1157.19 +2.32 To be removed, please click here Russell 2000 599.85 +1.47 VOLUME 04: ISSUE 17  Feature: Assure Energy - Hot Town, Summer in the City. As we wait for drilling results, production and earnings number for Assure Energy (OTCBB: ASURF) some discussion of the sector situation would help to show why investors need to have energy exposure--and specifically Assure. We strongly reiterate that investors continue to accumulate Assure shares at these levels both for the macro reasons noted below as well as drilling results and other corporate announcements to come. Macro points: Oil refuses to drop below $35 a barrel Natural Gas has built a price floor of around $5-plus per mcf Analyst predictions that natural gas prices could rise to $7 per mcf by summer 2004 Winter exit reserves of Natural Gas are around 800 billion cubic feet, well below historic level of 1.1 trillion. Gas reserves will have to be built to 2.2-2.8 trillion cubic feet by end October 2004. Analysts have begun raising estimates for exploration and production companies as well as share price targets Predicted rise of gasoline prices to perhaps $3 a gallon this summer will focus investors on energy stocks. As we have mentioned in previous articles, energy demand, specifically natural gas, is now a year-round phenomena. As the feed stock of choice for gas-fired electricity production, natural gas has already began to outstrip the pre-eminence of oil in the hearts, minds and wallets of consumers. To not have portfolio exposure to natural gas exploration companies is, frankly, an invitation to a massive loss of opportunity. Canada gives the US gas.... As the largest consumer of natural gas, there is likely little concern where the US gets its product either for current power needs or to bolster the reserves that both warm and cool virtually the entire country. Canada accounts for 30 percent of US oil and gas imports. Drilling in Canada is up 60 percent in the last 20 years while US drilling is down 71 percent over the same period. Proximity, exploration and discoveries leading to increased production will undoubtedly increase the amount of oil/gas Canada ships to the US. Assure Energy is exploring and drilling wells and boasts significant production and reserves in Canada within the Western Sedimentary Basin, the most prolific gas play in the world.  All one has to do to see this graphically is to look at the Amex Natural Gas Index (AMEX: XNG) to see the very strong price trend--up 25 percent-- for the constituent companies that has unfolded over the last year. We believe that the Index --currently 227--will test its two-year high of north of 250. In other words, there is room for the index--and by extension its constituents--to run. Better an owner than a victim. Over the same period, shares in Assure have actually outperformed the index--up 40 percent--and up 12 percent since we alerted readers in the fall of 2003. We believe that pending numbers from the current drilling program --which should be out soon--will push Assure to the next level among its peers. As we have also said, those investors who wait for those numbers will likely miss a significant move in the share price. Assure shares have eased to $4.15-$4.20 level from a recent high of $4.75. We believe this represents a reasonable floor for the share price and, as well, a decent entry point for investors as the winter/summer energy season heats (no pun, promise) ups. Consumers have, and will continue to feel the sting of higher energy prices. To be on the other side of that equation--owning energy stocks as a hedge--seems almost a no-brainer.  It's a matter of logic.... In other words, owning an energy exploration company that is focused on converting assets in the ground to assets on its balance sheet within a sector that won't see commodity prices drop anytime soon seems a reasonable-- even a very compelling-- risk/reward situation. Assure is growing through acquisition and through the drill bit. Against the supply/demand backdrop noted above, this approach is really the only one that makes sense to quickly unearth production and develop reserves to meet the insatiable North American thirst for energy. The continuing, and growing supply/demand shortfall for natural gas will further exacerbate the rising price problem for businesses and consumers . Investors who have or are considering purchasing shares in quality exploration companies such as Assure already know that.  Further, investors who do the math and act, will not only offset those their own household or business energy price increases, but will profit significantly as energy demand continues to outstrip supply. As we said, truly a no-brainer.   We Value Your Feedback Got comments, questions or suggestions? 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