Geeze, you left out one of the best screwups---the decision to drill
the Daniel when there was no pipeline available. DUH!!!! Anyway, that's water under the bridge, as Adda relinquished it's claim on
Daniel--just walked away. Yeah, terrible decissions compounded by more terrible decissions. OH, don't forget Cameron 18!
Anyway, I think we're all sorry to be investors at this point.
UP has a contractural obligation that holds them responsible for
cleaning up the messed up fracs on Cottonwood and Luman. This is
Adda's position and I've been told that we have an agreement between
UP and Adda in writing that enforces our position. There is also an
issue of monies that have been created by the sale of gas from Cottonwood--remember it is hooked up to the Williams pipeline--that
have be purloined by UP that are owing to Adda. I believe that the
Cottonwood and Luman are good properties and I'm pissed about our
lack of progress and losses that I've suffered.
Here's how I keep from total despair on this whole deal:
There are some big boys that are being hurt a whole lot more than
me---and hey, it is the Van. Exchange--when gas prices start to move
up this fall, I'm counting on these boys to weld some influence on both UP and Adda.
David Finn inherited this mess. I've spoken with him numerous times
about the situation. Based on my conversations with him and supporting conversations with others, the picture is get of him is
that he is competent to lead Adda to be a producing company. He will
bulldog UP until this is resolved (I'd be more aggressive, personally)
but, we can't change the gas market--it's going to be depressed for
a while. However, reserves are at a very low point--a historic low
in number of rigs drilling new wells---gas wells typically don't
last forever (however, according to Allan Laird, pres. of AOW and
a very respect resevoir geologist, the GRB wells will produce at a
sustained level for a very very very long time).
I don't know if any of this makes much sense to you--I'm so tired of
this cluster f**k that I won't even bother to proof it. I'm stuck,
you're stuck and that's about all one can say at this point in time.
The slim holes that Amoco put down in the pinedale are very promising-- Schlumberger's fracing tech and associated costs are
way way less than the Halliburton hose jobs.
Tired and frustrated of the whole thing.
I'll not bore you with any more posts till something substantial
actually happens!!!
Lew |
