Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: k.ramesh who wrote (49823)	8/24/1999 7:46:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

kramesh, Agreed- Assume (fairly) that one MCF of pipeline quality gas (gas quality specs are always written into purchase contracts by pipelines who transport or buy the gas-i.e.,no water, no carbon dioxide, very little H2S or metals, etc) has 1000 BTU's heating value in it. Now out in the Field where natural gas is produced, the natural gas coming out of the ground will be as low as 100 BTU heating value if commingled with lots of CO2, or go the other way as high as 1600 BTU's of heating value per MCF if lots of natural gas liquids ar eentrained in the gas. After the gas goes through a field separator it moves closer to the norm of 1000 BTU's in each MCF- but it still needs to go through a gas plant and have entrained liquids removed usually... Be very careful with the latter type of gas- it is major league explosive, no smoking no plastic components around it (static electricity danger), only gronded metals components, etc.....

To: k.ramesh who wrote (49823)	8/24/1999 7:53:00 PM
From: hdrjr	Respond to of 95453

k.ramesh, Thanks! In my business and background M means a million and K means 1000. I do now suppose that a MMBTU's is a 1000, 1000 BTU's are indeed 1 million BTU's. Once natural gas has been produced, ie. extracted from the earth, what is the relative price of cleaning and/or removing the liquids per 10,000 MM btu's or is that indeed a function of the impurity entrainment. In reality all I am looking for is a basic rule of thumb that can be used to access the value of individual company reserves. Maybe this should be addressed to Aggie. Thanks again Edit: Douglas I just read your response to k. ramesh and that is very helpful, but as above I wonder the rule of thumb for the expense in the refining (if that it is what it is called) the natural gas to its acceptable and saleble state.