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Gold/Mining/Energy : KERM'S KORNER

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To: Kerm Yerman who wrote (14089)12/8/1998 2:42:00 AM
From: Kerm Yerman   of 15196
 
FIELD ACTIVITIES / Elk Resources, (operator), Stanford Oil & Gas,
Westminster Resources, Richland Petroleum, Hilton Petroleum,
Kookaburra Resources, Paramount Resources and Berkley Petroleum --
Update #2; Bellevue #1 Well - East Lost Hills; Well Control
Operations

CALGARY ---- The participants in the Bellevue #1 well at East
Lost Hills have decided to drill a relief well, Bellevue #1R. The
relief well will be drilled to approximately 12,500 feet at which
point intermediate casing will be set. The new well will then be
steered over to the existing wellbore to intercept it at an
estimated depth between 13,500 and 14,000 feet. The relief well
will be located 1,500 feet from the Bellevue #1 well. A rig rated
for a depth of 25,000 feet is currently being mobilized for
drilling of the relief well. The well is expected to spud on
December 12, 1998 and will take an estimated 45 days to intersect
the existing wellbore.

Boots & Coots International Well Control are still assessing
whether or not surface intervention on the existing well is
possible. Crews have removed most of the equipment and debris from
the well site. Plans are to install a diverter assembly that will
transport the hydrocarbon stream to two burn pits. Temporary
separation and production storage equipment are being procured to
extract the light oil or condensate from the hydrocarbon stream
which could significantly reduce the volume of hydrocarbons being
flared. Most of this equipment is scheduled to be installed within
a week.

The intense combustion of the hydrocarbon stream limits the
ability to conclusively sample and test the stream. Samples taken
from the hydrocarbon stream on December 6, 1998 indicate the
presence of light oil, condensate, natural gas and water. As
previously stated, the operator has not been able to measure the
volume of hydrocarbons being flared.

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