anyone still following this play????
there's much going on here......(taken from the Stockhouse site....thank you manzare17)
V.PLM is a former junior miner which is in the process of transforming itself into junior natural gas producer ( www.pallaum.net),while retaining ( and perhaps soon to expand ) properties in the precious metals domain.
It has about 24 million shares, and 27 million fd.
It has a working interest in 4 producing wells in Hood County which is part of the rapidly developing Barnett Shale natural gas formations of Northern Texas.
The Hood County Claim is 5700 acres, and a 100 well program is planned to fully develop the field.
Further, PLM has an option on a 3200 acre property in Wise County of the Adjacent East Newark Field ( afeoilqandgas.com ).
This property should be able to sustain 60 wells or more, and a series of 5-well LPPs ( Limited Partnership Program )are planned to develop this field beginning in the near future.
For more information on the Barnett Shale go to ( humble_inc.com )
These Barnett Shale fields of Northern Texas have several features...
(1) they are very extensive with current delineations continuously expanding , as new wells are drilled
(2)the rule of thumb is that every 100 ft thickness of Barnett Shale will generate recoverable reserves of 1 billion cf of natural gas ( approximtaly 170,000 barrels of oil equivalent )
(3)Barnett Shale natural gas is "tight " and will generate about 30 % more heat per dimensional measure than conventional gas formations.
Natural gas is sold by its heat units
(4)90 % of the BS wells drilled in the North Texas field produce more than 500,000 mcf/day ( approx. 90 barrels ).
The average BS well will yield about 1 billion mcf ( 170,000 boe) of natural gas over its life-span ( about 4 years ).
(5) Barnett Shale wells are fairly Shallow ( 5000-8000 ft ),and can be drilled in 10-12 days. The total cost for the average well, including drilling, completion and fracing, is about $600,000-$800,000.
(6) Drilling BS wells in the North Texas field is very low risk. Mitchell Energy , which initiated the development of this field ( and which was just taken over by Devon for about $6 billion CAD ) drilled 700 wells without a single dry well.
(7)Current exploitation strategies concentrate on the shallower stratum, but there are 2 deeper strata which offer additional hydrocarbon possibilities.
In Particluar, the fractured feeder zones ( just below the BS stratum ) can have mega-quantities of both natural gas and oil, and these have occaisonally been encountered while drilling for the shallower BS ( see the Pallaum site for an example of this ).
(8) Mitchell Energy has recently shown that increasing the density of barnett shale wells in the East Newark Field from one well/50 acres to one well/25 acres can almost double extractable reserves from a BS formation.
Further, refracing old wells can add as much as 50 % to existing production.
(9) currently, the rule of thumb is that the BS fields of North Texas will produce about 30 billion mcf per 640 acres ( 1 sq mile )-thats 5 million barrels of oil equivalent.
If theHood County property has average production, it could yield about 45 million BOE and , likewise , the Wise County property could yield about 25 million boe.
In short, the potential is quite large, and at low risk.
Should Pallaum be successful in its intent to develop the Wise County with a series of 5 well LPPs, and, if the ongoing developemnt of Hood County ( 25 % working interest )continues, then PLM could very easily have a production valuation of a $1 or more within a year.
Further, PLM has a JV with Falconbridge to conduct exploration and drilling activities of its startegically placed nickel properties in South Voiseys Bay ( www.pallaum.com/adlatok/locationmap.html ).
Yorkton has reviewed all of the historcial data on the South VB site ( mostly from Donner,s work ), and the comparisons with the major nickel find by DF in Voiseys in 1995 show very strong similarities.
This report, I believe, can be obtained from PLM ,or from the Donner site.
In the past 3-4 months, several reports have come out about Pallaum which offer additional detail to the summarized information provided above.
These are the Roulstein Report and the RoundTable Research Report ( stockhouse.ca .
Copies of these reports can be obtained from PLM ( ir@pallaum.net or preferable sford@pallaum.com ).
This new report,by Round Table Research, uses very conservative recovery and producing parameters to arrive at
a $2.50 valuation price on just the Hood County alone.
The above information is a gross summary of the technical information available on PLM.It is mostly from information acquired from scattered and diffuse sources, nearly all of which , at some point or another, has appeared on this BB.
While it may be a starting point for your DD, you should diligently research all and any information, as part of an extended DD that every investor should perform.
You can reach PLM by calling toll-free at 1-800-263-1880 ), or by contacting PLM by email at sford@pallaum.com. |
