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Gold/Mining/Energy : Golden Arch Resources---GAI.V
GAI 8.8000.0%Mar 22 5:00 PM EST

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To: Bill Potton who wrote (150)6/22/1997 12:57:00 AM
From: JR.   of 359
 
Bill,
Mud logs according to a friend of mine are a way of testing the drilling mud as it comes up the core during drilling. The drill crew gets an indicator if what they just passed through has any oil in it just by looking at the discoloration, or better yet how much free unemusified oil is coming up in the mud. If its a natural gas zone then they use a "Sniffer"( a meter devise sensitive to methane). Almost all wells have some background hydrocarbons that register on the meter, usually 100 units with surges as they start a new zone. However, if it spikes up to say 400 or more units and remains steady or increases then they know they have a zone that looks interesting and will require follow-up testing .By watching the drilling mud and using the "Sniffer" they can be warned in advance of various situations .That's as I understand it .Someone may articulate it better than I, please do.Price=current price plus 50 cents/100 boe JR.
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