Bentek Energy Predicts Significant Price Drop for Rocky Mountain Natural Gas; Study Finds Increased Competition Could Result in a 50% Price Decline in 2005.

DENVER -- Bentek Energy, LLC, the leading competitive intelligence consulting firm for the energy industry, announced preliminary findings from the company's new multi-client study of the Rocky Mountain natural gas market that foresees as much as a 50% price drop for Rockies gas in the coming year.

The study, titled "Catch The Wave - Risks and Rewards in the Expanding Rocky Mountain Gas Market," provides a comprehensive review of the supply, demand and delivery fundamentals that shape the market for Rocky Mountain natural gas.

"We were quite surprised by study findings that Rockies gas prices could be much lower by this time next year, perhaps down into the low $3.00/MMBTU range," commented Porter Bennett, Bentek president. "We expected that the new pipeline capacity out of the Rockies providing increased access to Midwest markets would improve the market for western gas production. Instead any improvement in market access has been overshadowed by dramatic increases in competitive supplies from new production in West Texas and Oklahoma."

This conclusion and others in the four-volume Catch the Wave study are based on a detailed analysis of Rocky Mountain natural gas supply and demand which includes:

--A Basin-by-basin review of production trends and forecasts

--A Pipeline-by-pipeline assessment of capacity, utilization and deliverability

--A Utility-by-utility analysis of demand down to the sector level - commercial, power, industrial and residential

--An assessment of specific market risks, developments, opportunities and strategic implications.

The study looks at new pipeline capacity in the Western natural gas markets including the expansion of Kern River and the construction of Cheyenne Plains, then evaluates the potential impact on that capacity from a reversal in production declines being driven by increases in drilling activity throughout the West and Mid-continent. In addition, the study examines the potential impact of the "LNG wildcard" on long-term supply demand balances. Bentek predicts that while the current level of LNG imports is essential for meeting U.S. demand over the next two years, almost all of the new LNG terminals which have been announced would be surplus to long-term U.S. supply requirements.

"Catch the Wave evaluates each of the major developments impacting the market for Rockies natural gas through 2010," noted Rusty Braziel, managing director of Bentek. "Understanding these developments is essential for making strategic decisions on gas marketing programs, transportation arrangements, drilling budgets and pipeline investments.

For a free summary of Catch the Wave, please contact Rusty Braziel at 888-251-1264 or log on to www.bentekctw.com.

About Bentek Energy LLC

Bentek Energy, LLC is an independent competitive intelligence and market research consulting firm for the energy industry with offices in Golden, Colorado, and Houston, Texas. Additional information about Bentek Energy is available on the Web at www.bentekctw.com.