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

To: Stocker who wrote (6271)	10/28/1999 1:54:00 PM
From: pump_jack	Respond to of 15703

Let's keep things in perspective. PCP has dropped a couple of dollars a share or 10% since they announced a profit of $83,000,000 in the third quarter. If the blue chips can't hold value on good news, we can't expect to either. The great news isn't far away and will give the results we anticipate. BKP has issued news releases that are positive and contain as much detail as they can legally give. Wait for the test results and we will be rewarded.

To: Stocker who wrote (6271)	10/28/1999 2:32:00 PM
From: Ed Pakstas	Read Replies (3) \| Respond to of 15703

Just had this magically appear on my fax machine...It's a copy of a Memorandum...Here it is in it's entirety... I've left the names off to protect the innocent... October 27, 1999 The Cal Canal well is currently drilling at a depth of approximately 15,250 feet. It is currently believed that the well is running approximately 300 feet low to the original geological prognosis, which called for the top of the Temblor formation to be encountered at a depth of 14,100 feet. It appears that the actual top of the Temblor formation (the Temblor sand) was encountered in the well at 14,486 feet and the sand package was poorly developed as originally predicted. Utilizing the surrounding well control would suggest that the second Cameros Sand should be encountered in the well at a depth of 15,350 and 15,500 feet. This is the first sand package that is expected to be well developed and have reservoir quality sand. In early September Berkley Petroleum ran a VSP in the well to a depth of 13,540 feet. The velocity data to that depth ties to the original geological prognosis. A "seismic look ahead" profile was run using the data from the VSP which suggested that the top of the Temblor formation could be encountered as high as 13,750 feet. In order to ensure proper wellbore design and safety the intermediate casing was run based upon this interpretation to a depth of 13,840 feet. It is now clear that the "look ahead" profile was incorrect. There appears to be a problem with the processing and modelling of the data used for the "seismic look ahead". The technical merits of the Cal Canal prospect and potential have not changed. There is excellent geologic and geophysical support for this prospect. Even if the top of the first Carneros sands come in 300 - 500 feet low of the original prognosis, the potential of the prospect is not diminished. All of the potential sand zones, based upon geology and seismic are concordant and will "bulk Shift" in depth. Berkely has had to increase the mud weight by approximately two pounds per gallon in the last 400 feet of drilling in order to keep the gas shows at a safe level. This increase in bottom hole pressure and gas shows is very reminiscent of drilling at the Bellvue #1-17 at East Lost Hills. The significant increase in bottom hole pressure is a strong indication that the structure at Cal Canal is sealed (trapped) and based upon the hydrocarbon shows it would now appear to be charged. The Bellevue # 1 production test is proceeding although at a slower pace that originally anticipated. The well was perforated last Saturday and initially flowed oil and gas at very encouraging rates, however, the perforations at the sand face and in the tubulars are plugged off with the last circulation materials that were pumped in the the well during drilling. The well bore and perforations will be cleaned out over the next few days and the production test will proceed as originally planned. Given the type and amount of lost circulation materials and mud that were pumped in the sand during drilling, it is not a surprise that some clean up of the zones and wellbore will be required. The Berkley well at East Lost Hills is currently drilling 15,100 feet at a rate of approximately 25 feet per hour. The next casing point will be at approximately 17,100 feet. The well is running right on the geological prognosis and ahead of the drilling schedule.