here ya go
RECOMMENDATIONS
1. ACCUMULATE Hilton Petroleum Ltd. (HTP : VSE : $1.88 : Issued 28.2M)
Stockdale
* Blow-out at East Lost Hills, CA, reported controlled
* ACCUMULATE Hilton Petroleum Ltd.
*
Hilton Petroleum Ltd. (HTP : VSE : $1.88 : Issued 28.2M) ACCUMULATE
The Bellevue number 1-17 blowout well at East Lost Hills, CA, in the
San Joaquin Basin near Bakersfield, was reported controlled-killed- on
Saturday, May 29. Apparently, the kill went without a hitch on Friday
morning, taking a mere 30 minutes as the pressured-up mud first
triggered the perforation gun and then, flowing at an estimated 20
barrels a minute, overpowered the out of control flow of natural gas
and water. The plan remains the same: the relief well will be
sidetracked at about 10,800 ft. as the participants hope to put
another straw into the Temblor sequence, which is estimated to start
at approximately 17,500 ft. and, at this depth, a 71/2 inch casing
will be bottomed, in preparation to drilling ahead with a 5? inch bit.
Then, with a significant increase in porosity anticipated, the
prognosis is that the speed of drilling will increase significantly.
The market has sold-off somewhat with the news, probably because the
participants have published an estimate of 75 days for the re-drill.
However, it could be as early as 45 days to the time that the bit
starts to encounter the Temblor sequence. Meanwhile, mid-June is
anticipated to see the spudding of the Cal-Canal wildcat-a separate
structure from East Lost Hills-and in the first half of July, the
start of drilling of a second rig on East Lost Hills. The time for
short-term trading is drawing to a close; speculators wishing exposure
to the huge potential of this play should start accumulating now.
Clive Stockdale (604) 643-7403
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