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

To: Sylvia Dupuis who wrote (3761)	7/29/1999 4:30:00 PM
From: grayhairs	Read Replies (3) \| Respond to of 15703

Hi Sylvia, ELH is a single exploration "prospect". The target structure here is about 14 miles long and 2-3 miles wide. The total reserve potential of this prospect is in the order of 15 TCF. The joint venture ("JV") which is exploring this prospect includes BKP, WML, PYRX, HTP, POU, ELK, KOB, RLP, TMK and a handful of private entities. A well is now drilling on the ELH prospect. A second well is to start drilling late this week. A third well will be drilled shortly after the completion of the drilling of the first well. The ELH prospect has, by virtue of the blowout well, already been proven to contain hydrocarbons and it has been proven capable of producing gas at commercial rates. Following the "success" at ELH, a second joint venture was created to explore additional similar prospects in the same exploration basin. That JV, the Greater San Joaquin Basin Joint Venture ("GSJBJV"), is comprised of the above parties excepting KOB and RLP. There are roughly 10 prospects which the GSJBJV will explore. A rig is already drilling the first well in this JV at around 12,000 ft on the "Cal Canal" prospect. When drilling there is finished, the rig will be moved to either the "Pyramid Power" prospect or to the "Lucky Dog" prospect. Land positions have been assembled on several additional but unidentified prospects. All of the above prospects are "deep" (15,000 - 20,000 foot range). And, they all have "huge" reserve potential. For example, if gas charged, the Cal Canal prospect could hold as much as 4 TCF. And, Cal Canal is the "smallest" target announced to date !! Hence, I earlier said, " WOW " !! The interests held by the parties in these two joint ventures vary widely (Eg. 1% to 31.5%). Furthermore, no party has the identical working interest in both joint ventures (Eg. BKP holds 16% in the ELH JV but 31.5% in the GSJBJV). Some parties (Eg. PYRX) have minor "carried interests" in the first prospect wells until payout. Everyone's interest BPO (before payout) differs from their interest APO (after payout) !! So, the ownership situation is poorly understood by many (including myself). In addition to the ELH and GSJBJV, there are other "ventures" riding the wave of the ELH success. I do not follow those ventures in detail but for more information on them you may wish to check the threads for Kismet and for TRIL. "BearcatBob" is knowledgeable about those ventures and would surely provide you more info on same, if you wish, I'm sure. Have a great day. Later, grayhairs