Grayhairs,
This announcement by Remington Energy and Apache attracted my attention by the fact that they intend on producing a well with only 40 net ft of pay in 3 sands.
It appears insignificant to what Strachan may have.
Assuming your 280 BCF target turns out to be correct,all the cards are in Apache's favor to buy out the sisters interest in Strachan.
It is a very likely scenario due to a record low Canadian dollar,natural gas prices in a temporary lull,drilling costs have now dropped dramatically,financing costs at record lows,huge warchest (as you pointed out).
Cash starved juniors would probably eagerly accept a reasonable offer.
To be economical a reservoir of this magnitude would probably have to be drained over a 20 year period.Based on some assumptions of anticipated productivity for Strachan,I would have to project a minimum of 3 more deep wells and several more shallow wells for maximum financial impact.I am only playing with numbers and without any details I can only speculate that the scenario of the sisters developing this pool on their own without a partner with deep pockets is unlikely and Apache knows this.
Any how have yourself a great weekend.(Getting a jump on this one again)Just love these 4 day work weeks!
Richard
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Remington Oil sees '99 High Island output
DALLAS, Sept 9 (Reuters) - Remington Oil and Gas Corp. said Wednesday it expects production from a natural gas discovery on High Island Block 86 by the end of March.
The OCS-14155 #1 well, located offshore Texas in the Gulf of Mexico, was drilled to a depth of 10,689 feet and logged 40 net feet of gas pay in three sands, the company said.
It said the well is being completed, with first production anticipated late in the first quarter of 1999. Remington owns a 33 percent working interest in the well, which is operated by Apache Corp. (NYSE:APA - news).
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