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

To: sportsman who wrote (60120)	2/10/2000 9:41:00 PM
From: jim_p	Respond to of 95453

I said Amoco lost over a Billion dollars on the exploration and development of the Opon field in Columbia. I doubt if BP/Amoco has made more than a Billion dollars in their other investments in Columbia. The Opon field cost $35-50 million to drill and complete each well in the field. Each well tested at a rate of 250 MMcf to 400 MMcf per day. It was touted as one of the 10 largest gas field ever discovered. Before the pipeline was completed, Amoco built an electric power plant to be run on their newly discovered gas from the field and then a processing plant to process the gas. The wells drilled set three world records during the drilling due to the heat and pressure of the formation. When the project was completed, the wells were turned on and produced for about a week. As it turned out, the wells were under such great pressure and heat that it was actually an oil field and not a gas field at all. Unfortunately as oil wells, the wells did not have the porosity to produce from the formation. The entire project was a loss. A major reason for the excessive cost was the need to build roads, schools for the locals, the constant cost to rebuild the pipeline after being blown up by the rebels and the need to have a private army to protect their people. In addition, supplies had to be brought in by helicopter. I still say, I would not invest in Columbia. The cost of doing business is to high. Jim