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

To: STLMD who wrote (4608)	9/10/1999 10:31:00 AM
From: Salt'n'Peppa	Respond to of 15703

Stephen, the average Canadian gas well drains approximately 1 section, or 16X the 40 acre SOP property. The average Canadian well probably produces 2 MMcf/day and will probably ultimately produce 10-20 bcf. Regards, S&P

To: STLMD who wrote (4608)	9/10/1999 10:32:00 AM
From: Check	Respond to of 15703

Hi Stephen I think it's more like wells per section - and I believe the standard answer is....ONE. CIO

To: STLMD who wrote (4608)	9/10/1999 10:41:00 AM
From: Salt'n'Peppa	Read Replies (2) \| Respond to of 15703

Stephen, another thought comes to mind. If the BKP JV establishes production at Cal Canal, it will drain a large area around the wellbore. I'm not exactly sure of the rules, but it is my understanding that if the SOP group drill a successful well, and it is in competitive drainage with the BKP JV's well, then Berkley has the right to shut them down, or pay huge penalties to the BKP JV. Perhaps someone with more knowledge in this area could comment further. Regards, S&P