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

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

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To: RSkarsten who wrote (775)	12/9/1998 3:50:00 AM
From: JL	Read Replies (3) of 15703

Russ... In the old days it wasn't uncommon for wells to be abandoned because they started to flow water instead of oil. This created a whole new industry for our day and age because it was discovered that the water was a result of drawing up the oil too fast. Today we have "re-entries" that turn into good producers. This open hole flow that we've had for the past 2 weeks could easily be ranked in league with those big producers. The downside of this is that the explosive rise of this stock and the stock of the partners was fueled by speculation on behalf of a lot of people that saw easy and quick money. Unfortunately, that is not going to be the case here. Those people are going to sell tomorrow (the 9th) on successive bids and drive this stock way down. Maybe to where it was on November 23rd. Maybe even lower. This will be a panic sell off. Strange that the sell off will cause what they fear will happen. In this case I would rather risk waiting for the second well than sustain the loss of selling in a panic market. This particular well appears to be dead for all intents and purposes. Maybe without the blowout it would've worked out. The next well (and there WILL be a next well) will tell the tale. At this point we're still in the dark. We don't KNOW for sure that the water is a result of this unbridled open hole flow of enormous gas volume but it's a very distict possibility. A well know phenomena. It could easily be from up-hole. A different level. Forced to flow into the bore by the unbridled rush of gas from the lower level. All I know for sure is that there are companies that thrive on re-entries that were made possible by shows of water caused by rapid withdrawal of the coveted hydrocarbons during the original production. For those willing to wait it out it may pay handsomely. All is not lost.... Unless you're one of the unlucky few who sold the farm and believed that they'd be rich early next year in time to make February's mortgage payment. JL

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