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

To: griff who wrote (5521)	10/7/1999 9:44:00 PM
From: Roman S.	Read Replies (1) \| Respond to of 15703

Grayhiars, ELH#2, how far is it? Does anyone know? That will be the next good spec run after the next month of activity. This play is in LOComotion!!! I hope KOB starts to catch up to HTP at least at 80% of its value!

To: griff who wrote (5521)	10/7/1999 10:49:00 PM
From: grayhairs	Read Replies (1) \| Respond to of 15703

Hi griff, There are so many unknowns about CC (and ELH) at the moment that I can not give you an answer which is not itself pure speculation. Reservoir pay thickness, pressure, permeability, tubing\casing sizes, pipeline operating pressure, size of the reserve, whether or not there is any underlying water, etc. all influence maximum production rates. The maximum flow rate that a well can produce is called its "AOF (Absolute Open Flow)". And, the only wells that ever produce at their AOF's are blowouts !!! When wells are produced at maximum rates there is risk of several different kinds of irreversible damage (for example ELH#1 went to water in just two weeks). BKP will NEVER deliberately produce a well that cost $10MM US to drill and another $3 MM US to complete at its maximum rate !! Never !!! It just will not happen !!! Having said all that, I think you'll see some deep Temblor wells produce at sustained rates in the order of 100-150 MMCF/d. Few, but some. On the other end of the spectrum there'll be some that produce at only ~20 MMCF/d. <<Do the charts at Eland Jennings account for timeframe for recovery or are they just based on bookable reserves?>> If you are referring to the EJ "Impact Analyses" those calculations are based upon EJ's estimate of the fair market value of California gas reserves, in the ground. That is, what would someone pay for the property today if there were those kinds of reserves in these pools. <<(Or is it more profitable for the insiders to keep them separate?) HTP could grab a controlling interest in TMK (at today's prices assuming 5M shares diluted for a round number) for a measly $4,000,000 and increase their holding in the GSJB JV by 50%.>> I think it is very safe to assume that Busby doesn't go to all the extra work of running several companies concurrently just for the fun of it. And, I fully expect that TMK and HTP will be amalgamated some day. You can also bet that when it happens, it will be one great deal for "certain shareholders" !! BTW, I believe HTP owns 1,960,000 of the 22,900,000 TMK shares F\D. So, according to my numbers, control would cost a lot more than $4MM !! Have a pleasant evening. Later, grayhairs