Hi Werlick,
Sorry to be so tardy in replying to your questions. Unfortunately, family affairs have required that I be away from my computer a fair amount recently. [I haven't even hit a golf ball since July 19!!!]
Now, with respect to your questions, Apache have, per my information and calculations, through August 24 to ELECT to drill their next earning well. They would then have through October 23 to actually SPUD that earning well.
I have previously stated on this thread that I would NOT be "surprised" if these dates (at least the election date) are modified by the mutual agreement of all parties to the agreement as there can be several good and valid reasons (E.g. September 16 & 30 sale dates, to name two) why the dates might be extended. If Apache and the sisters are trying to buy more land on the play, why would they tell their competition (before the sale) that Apache will definitely be earning more lands?? They only increase their risk of losing land they may want to purchase!! Would it not be better to at leave a question mark with respect to Apache's earning of additional lands until after the sales of interest? To me, the election "date" is not what is critical. Rather, it is the actual election "to drill and earn more lands" or "to not drill/earn more lands" that is important to shareholders of the sisters. As I believe that the decision by Apache will have to be deemed material to the sisters, once Apache's decision has been made, I believe there will be a number of Press Releases advising of same.
I have also commented before on this thread that if Apache does elect to drill another well, then it may NOT be on the 1st Option Block. Again, there can be several good reasons why the next well may instead be drilled on the 2nd (or even on the 3rd) Option Block. It would be quite ridiculous to "assume" that certain acreage was "condemed" by such action!! It may be more prudent to instead assume that "priorities" are more clearly defined today then they were when the original agreement was prepared and executed.
Alberta Crown land sales are held every 2 weeks. "Sealed" bids are due by noon on the sale date. Successful bids become public information at 10:00a.m. the day following the sale. No other bids are published.
Near term sale dates and Strachan Area parcels available for purchase are as follows:
a) August 5/98
-- Lease A0092 (Sec 19-38-8W5 --P&NG below Mannville only)--This lease was purchased by a land broker/agent for roughly $27,000.
b) August 19/98
-- Lease A0437 (S/2 of Sec 15-37-9W5 -- All P&NG)
-- Lease A0438 (Sec 5-38-9W5 -- P&NG below Cardium only)
-- Lease A0439 (N/2 of Sec 33-38-9W5 -- All P&NG)
c) September 2/98
-- No leases nor licenses in the immediate area are offered for sale.
d) September 16/98
-- License B0130 (8 sections, a mix of deep rights only)
-- License B0131 (Sec 10-37-10W5 -- All P&NG)
-- License B0132 (Sec 11-37-10W5 -- All P&NG)
-- License B0133 (Sec 7-38-8W5 and Secs 12&13-38-9W5 -- P&NG below Mannville only
-- License B0134 (Secs 31&32-38-9W5 -- All P&NG)
-- License B0135 (N/2 of Sec 3 and N/2 of Sec 4-38-10W5 -- All P&NG)
-- License B0136 (N/2 of Sec 28-38-11W5 -- All P&NG)
-- License B0137 (N/2 of Sec 29-38-11W5 -- All P&NG)
e) September 30/98
-- License B0063 (S/2 of Sec 3-38-10W5@All P&NG, plus Secs 23,26,27,34&35-37-10W5 and Sec 2-38-10W5@P&NG below Mannville only)
The August sales only "test the waters" for the later sales. Bids by Apache et al on these sales are not expected to be "large". It is the September 16 (and subsequent??) sales that will be the ones to watch. Of the ~26 sections posted in the above sales, very few will draw "important" bids, IMHO.
QUESTIONS TO PONDER:
1) Will Apache et al not use an agent to bid all "lands of interest"??
2) If Apache does use an agent, how will we know (with certainty) that "lands of interest" have (or have not) been acquired by Apache et al??
Later,
grayhairs |
