Howdy THC !
The main difference between ELH and EHKO seems to me to be that at ELH one can buy "huge quasi-proven gas reserves" located in a premium gas market area for just peanuts !! At EHKO one can buy into a "wildcat exploration play" for just peanuts.
A secondary difference is that most of the ELH participants are also involved in 3 other deep California exploration prospects (Cal Canal, Lucky Dog and Pyramid) whereas the EHKO participants, I believe, only have one kick at the can. It will either work or it will fail. If it fails, is there any hope of salvaging one's investment ??
The ELH prospect is a most unique anomaly. At the moment it has no wells capable of production yet, because of the lengthy blowout, it already has a huge (i.e. a few TCF) "quasi-proven" natural gas reserve !!! A well is now drilling near the top of the Temblor structure and a second development well is expected to spud within 30 days. This prospect will be generating very, very significant cash flow to the participants within just 90-120 days !! The group of companies involved in this prospect are now financially capable of aggressively developing the ELH structure.
Except for what I have read on this thread, I really have NO knowledge of the EHKO prospect. From what I have read here, I consider the EHKO prospect as just another high risk wildcat deep exploration play similar to Cal Canal, Lucky Dog, etc.. I question the timing for future drilling and development of the EHKO prospect as I am not aware of any current licenses. I also wonder about the financial ability of the participants to aggressively exploit the prospect as deep wells here will cost say $7-10 MM a pop. The earliest possible cash flow from any successful "wildcat exploration" at EHKO seems to be at least a year away.
As far as which entities to play, to each his own. Regarding the ELH prospect, my calculations indicate that HTP offers the greatest leverage of all participants. Of course POU and BKP provide the greatest security of investment but they provide only modest capital gain potential in comparison to the other players.
I am not playing and I will not play the EHKO project so I have no researched opinion on the "vehicles" involved.
I have not followed and therefore know nothing of BSX's activity.
The ONLY California plays that I am following are ELH, Cal Canal, Lucky Dog and Pyramid. I have made a very sizable (for me) risk capital investment in these plays and even more dangerously I have also spent Mrs. Grayhairs "cookie jar savings" on ELH. Suffice it to say that if for some reason ELH does not hit she will be quite pi**ed and I will never need a renewal of my Viagra prescription !! <<gg>>
Have a pleasant day and good luck with your investments, whichever you choose.
Later,
grayhairs |
