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

To: grayhairs who wrote (3548)	7/19/1999 10:08:00 AM
From: Check	Read Replies (1) \| Respond to of 15703

*OT* Good morning Grayhairs, <<Damn, you were up all night typing that Check !!!!>> Just about. And it took me the whole weekend at a friend's cottage to recover. My fingers were so sore I couldn't even get the bait on the hook. Had to resort to poaching some of the neighbour's lake trout catch, just as it was leaving the smoke house.<ggg> Seeing as the good fellow also had an excess supply of good whiskey at that house of delights, while our cottage had been broken into and denuded of same, well, we took the whiskey and him along as well. Good people these Gatineau hillbillies and their magic tobacco is not half bad either. Just wish they wouldn't sing so loud - droned out the loons for the entire night.

To: grayhairs who wrote (3548)	7/19/1999 11:22:00 AM
From: Check	Read Replies (2) \| Respond to of 15703

Hi GH, <<It is therefore fairly common practice to adopt the interests of the existing well for the computation of "pool share".>> But how do you compute the pool share?? If I read this correctly, ELK, for example, would base it's APO interest on Bellevue #1R which is 6.34375%. But if the reservoir is 3 TCF, covering 6 sections with 1 well per section, and ELK's APO interest is 7% on the remainder, then their average APO would be 6.89%. This would mean about $1.10 per share difference in their NAV. Not insignificant and the difference gets bigger the bigger the pool gets. Similarly, trying to calculate potential net revenues, when dealing with different royalties over different parts of the potential reservoir, I try to come up with some kind of acceptable average, as opposed to using straight 25% which is the case with Chevron on Bell. # 1. These averages will change with every well drilled. It was in this context that I meant to say that: " In this sense, I don't think even the companies involved could come up with a precise and definitive % numbers." Of course they'd bloody well better know what they have where!!! I check on them, not for them.