Jeff,
Here is a link: biz.yahoo.com
Some comments from the IR Jon Vaux:
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>From Investor Relations:
I've had several inquiries as to the time and value of the Cave
Gulch Field to Amalgamated. Keep in mind, Amalgamated holds an different
percentages of ownership or participation in each well. Amalgamated's Cave
Gulch reserves are estimated at $42 million and it will take the next
several years to prove-up the reserves.
The Barrett #1-29 Lak development well estimates are $7.6 million
to drill, 265 days to complete, depending how many pay zones are opened up
and what difficulties arise. As we have seen with the Cash Corner well,
sometimes it takes longer than hoped for.
Revenue could easily be $10,000-$20,000 or more per day, and the
deep reserves can be worth big dollars. Well completion costs are estimated
around $7 million. At $20,000 per day, this well could pay back in about 12
months. There are several wells in the area with this large production.
Amalgamated is participating in the Barrett well # 3-29 Mad well ,
which is set to drill any day to the Madison Formation at an estimated
21,150 feet. The estimates are $9.3 million to drill and set casing, 195
days to drill, and another 50 days complete. Barrett has on lease the
largest land rig built to drill this well.These rigs stand tall, appearing
like high rise buildings. The drilling platform is on the third story with
pipe supply hanging above drilling platform, waiting for insertion.
I had the opportunity to view the drilling of Cave Gulch #16 last
November. I have no idea how long Barrett had been drilling, but the
completion was released on August 12, 1997 (see press release) and I
understand they did have some difficulty completing #16.
We expect surprises when dealing with the pressures of the Earth.
Drilling a hole in the ground to these depths, takes patience. You must
drill straight and monitor formations as you go. If you start drilling at
an angle at the top, when you reach depth, you can be along way from your
target. Or as in #16, the operators may decide to change direction, after
your already in the ground, to follow the formations.
It is interesting to watch the flow testing or flaring of these
wells. It sounds like a jet engine and the ground shakes as they flare these
high-volume deep wells. The natural reservoir pressure on Cave Gulch #16 was
13,750 pounds. After 5 days the well had stabilized at 10.2 million cubic
feet of gas per day from just one pay zone. They can always open more zones
for more production, as the well has additional pay zones untapped.
Cave Gulch Field has a lot of drilling activity. If you find
yourself in the Casper, Wyoming area be sure to witness these amazing rigs.
Jon Vaux
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Guess we all have a share of that treasure now. Only problem seems to be that it is buried 20 000 feet into the ground.
Anyway, my impression is that the company seems to know what they are doing.
Regards
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