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Gold/Mining/Energy : Tusk Energy (TKE)
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To: Michael M. Cubrilo who wrote (1071)3/14/1999 8:40:00 PM
From: kingfisher  Read Replies (1) of 1207
 
Mike,
In regards to why get this well (Strachan) was not put into production ASAP.
Originally the plan was to spud Strachan in September of 97.Tusk had to find a major player to participate otherwise it would have exposed them to great risk (50%or more of cash flow at that time for one well).The whole project started off on the wrong foot with this delay and finding poorly financed secondary partners (First Star,Dalton,Loon).
Plan A: Find gas
Plan B: Develop gas
Plan C: oops no money (Apache pulls out and oil prices collapse).

As to Apache dropping out because their engineers do not feel this field is economical or they wanted the entire project and could not come to terms with the partners and choose to walk?We will never know until
A: Strachan Swan hills is tied in and a production history is established.
B:the shallow well to tap into possible sweet gas is spudded and hopefully cased and put into production.
C:A second Swan hills well drilled in a more optimum location proves or disproves the commercial viability of Strachan land.
D:Seismic needs to be shot on the newly acquired lands at Strachan for a possible 3rd and 4th Swan hills test.

But it is a catch 22. None of the above can happen without capital and that capital will have to come from a major player.
It is a fact that discussions are ongoing with several major companies to participate at Strachan.
I hope Tusk and partners can attract someone soon. At terms that they can live with.

Richard
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