KOB.TO - East Lost Hills & GSJB joint venture Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Salt'n'Peppa who wrote (373)	12/5/1998
From: JL	Read Replies (1) of 15703

Hi Thread... Several things are going to happen. #1 Get the fire out. If this happens quickly then great! If the casing is damaged and the fire is "outside the bore" then the well is seriously damaged and a relief well will have to be drilled. #2 Prove to the California liberal government that the fire was NOT a matter of NEGLEGENCE on behalf of the rig operators. Well fires are the exception and usually are the result of errors in judgement and inexperience. Ie. Drilling into the payzone too quickly. #3 Measure the reservoir size. This involves a measurement of pressure and then a free flow of gas and then another measurement. The depletion of the reservoirs size is a function of the decrease in pressure between the two pressure readings. Little change equates to big reservoir. The fact that it's been open bore flowing for 12 days with little if any perceptible change speaks highly of the reservoir. This shouldn't be a problem. #4 Drill AT LEAST two more wells to prove the field. At a depth of 17,000 feet we're looking at several months minimum. 17,000 feet is a DEEP well. Yeah. When these steps are completed (in order) with positive results at each step then the stock will be worth plenty. $20 on KOB would be a fair minimum. But only if there's a healthy reservoir here. Another thing about flow is that the pressure and volume that a well flows at must mesh with the pipeline that it flows into. Given that there is a gas pipeline nearby, the other users of this pipeline wouldn't like it very much if the pressure and volume from Lost Hills #1 were to back-pressure their own wells that are feeding this pipeline. Also the LH #1 will have to be tuned to flow at a rate that does NOT damage it's own reservoir through the use of chokes. There's still a long way to go and a lot of hazards that might cause these stocks to plummet. It's speculative until all is taken care of. A speculation that at this point looks worth the risk. If the California laws are the same as other states you can have one gas well per section or 640 acres. That would be approximately 30 wells on this prospect. Also ... This is the simplified "investor" explanation. If I'm in error on any of what I'm saying I hope to be told about it and straightened out so I won't be accused of spreading BS. I see we have some Geologists posting here. Great. Best of Luck to us all. JL

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next