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

To: dgz who wrote (3885)	8/9/1999 11:26:00 PM
From: SPRINGS	Read Replies (1) \| Respond to of 15703

On Stockhouse.There is word that Berkley indicated that the payzone has increased from 400ft to 900ft.Apparently this was stated at a meeting of the partners on the weekend. Can anybody confirm or comment

To: dgz who wrote (3885)	8/10/1999 12:09:00 AM
From: grayhairs	Respond to of 15703

Yep, we're getting a lot closer now. Probably only about 45-60 days from now until we get our first flow test (assuming no drilling problems). But actually I'm not very confident that they'll flare the test gas. They may very well just produce directly into their sales gas line instead of wasting the gas to flare. Better to sell it at $3.00/mcf and help pay some expenses, I would think. DGZ, if they get gas "kicks" from the Temblor this time, then the JV will have a significant problem in "proving up" the size of the ELH reserve, so I personally hope to Hell that they don't get any kicks at all. Gas kicks imply "less than perfect control" of drilling operations. And, this time around, "less than perfect control" for any length of time at all will likely mean "Stop drilling while the rig is still standing and the crew is still alive". That in turn would mean that the JV can't get their well to TD. If they can not get to TD, how can they possibly know what they have for net pay ??? If they don't know the net pay thickness, how do they improve upon their current reserve estimate which is "somewhere between 1 and 15 TCF" ?? And, how do they improve upon and optimize their exploitation plans ?? And, significantly, if they can't tell anyone how big ELH is, how do they get their share prices up to a level that will prevent massive further dilution as they finance additional exploitation ?? Just a few thoughts, BWDIK. Have a pleasant evening. Later, grayhairs