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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (1166)	10/15/1999 6:43:00 PM
From: grayhairs	Read Replies (1) \| Respond to of 1207

Hi Richard. <<What do the partners expect or hope to eventually prove out in total reserves here?Is is reasonable to expect a minimum 25 sections will contain hydrocarbons at an average recoverable volume of 3.5 bcf per section?Or perhaps a cool 100 bcf lies waiting to be drilled and proven.>> I haven't been able to get any of the participants to define a target reserve for the play . So, I've gone ahead and estimated what I believe to be a realistic reserve potential for the Jean Marie. In terms of an areal extent, I would assume that the JV only posted and acquired acreage that was deemed highly prospective. I further assume that only 1/2 the farmin acreage is prospective. Doing that one can still project a play of about 30-35 sections. So, it's not too hard to come up with a 100 BCF recoverable reserve potential for this play. <<Also if Tusk has a 30% BPO interest at Sahteneh,for accounting purposes if the well produces at 240 boe will Tusk be allowed to say that they have increased their production by 72 boe (30% of 240)until the well is paid out?>> I don't see why not !! (In Strachan they can only claim their BPO interest plus royalty share, not the larger APO interest.) <<SWFSTSOMF>> LOL !! Seconds, please !!!! <gg> Later, grayhairs