Craig,
UPR's a totally different ballgame from the "independents" I was talking about. UPR is the LARGEST independent in the United States. They're a spin-off from Union Pacific ... after completion of a $5.4 billion merger between Union Pacific and Southern Pacific Transportation.
UPR was a spin-off from a publicly traded company. It wasn't run by someone with a PERSONAL stake in the company who was supporting a trophy wife, previous family, planes, multiple residences and ranches -- You know what I'm talking about. You're from Texas.
My point is that even if the IMMM/UPR TEST is successful, there's a HUGE cultural barrier that has to be overcome in order to penetrate the market. I want IMMM to succeed. I like these guys. I'm a Yankee. -- But I see how they operate down here, and it's a totally different world.
This thread needs someone knowledgeable in the oil industry. I'm NOT that person. I'm on the periphery. I only provide social commentary.
The crapshoot here is whether or not the results of this TEST with UPR are "commercially viable". That's what EVERYTHING hinges on. You'll know relatively soon. If successful, IMMM projects substantial earnings by mid-1997. That's not far off.
Assuming the TEST is successful. How can it be proved that standard 3D seismic technology would have not achieved the SAME results? That's going to be a critical factor here. "Why change if it ain't broken?"
IMMM's already invested $800,000 in this, and will be spending $300,000 more to determine "commercial" vialibity. If viable they get reimbursed for all exploratio, but only 50% of drilling. How much of the $1.1 mil is exploration and how much is drilling?
Can someone tell me what "commercial" viability means anyway?
Best of luck to you,
Cheryl |
