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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: SeventhHeaven who wrote (3175)	7/1/1999 3:34:00 PM
From: grayhairs	Respond to of 15703

Hello SeventhHeaven, I did not realize that the EHKO prospect was so large. Would you please elaborate on your comment that EKHO is "potentially multiple times larger" than ELH ? The ELH structure, as defined by fairly extensive 2D seismic control, covers some 28 square miles. If the structure is filled to the lowest recognized spill point, it has a potential gas reserve of some 14 TCF. What "multiple" of that 14 TCF potential is projected for the EHKO structure (which I believe is actually smaller in areal extent)?? The top of the Temblor target at ELH lies at roughly 17,500 feet and the zone is believed to be about 2,000 feet thick. Are you quite sure that the EHKO structure is in fact a "deeper defined target" ?? I thought it was only at about 15,000 feet, and more comparable to the Cal Canal prospect. What actual role will Halliburton be playing in the EHKO prospect ?? Are they actually investing risk $$$ in that prospect ?? Or, are they providing their services at no cost to the participants in exchange for a piece of the play ?? Or, are they simply "selling" services to the EHKO operator, just as they are with the ELH and Cal Canal participants and just as they do with almost all other oil and gas operators all around the world ?? If only the later, then I would venture to say that Halliburton, as a service company, is attracted to the EHKO play simply as a revenue source to them, whether the play works or not !!! Their involvement in the later case could not be construed as providing any incremental credibility to the exploration target. Have a pleasant day. Later, grayhairs