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Gold/Mining/Energy : Canadian Partners in Project Ekho -- Ignore unavailable to you. Want to Upgrade?

To: Dale Schwartzenhauer who wrote (295)	10/30/2000 12:45:40 AM
From: grayhairs	Read Replies (1) \| Respond to of 311

Hi Dale, <<Suppose a bigger oil company knows how to solve the frac issue--like BKP--a million shares of stock for CWQ and a couple million dollar cash call gets 75% of the prize.>> I agree that's all "pretty far fetched" and, IMHO, the reason is "the prize". The proposed $2MM frac has what, perhaps a 10% chance of yielding a commercial flow ?? (Note, not a 'great' flow, just a 'commercial' flow.) And then what ?? To earn the 75% interest in the balance of the EKHO project would require an ante of about $25MM for further "testing" at EKHO #2 and #3, with TRIL directing operations and the "research" !!! No, I'm pretty sure that won't happen, Dale. Not by a "real" company anyway. Real companies have plenty of good places to put their money to work. <<That would be less money than they've spend thus far in ELH.>> That is certainly true. Far less. But, on the other hand BKP's substantial ELH expenditures have yielded results. Today, you wouldn't have a hope in Hell of buying BKP's ELH prospect at anything close to their cost in !! On the other hand, the EKHO JV is by and large walking from the EKHO #1 record wellbore over just a $2MM cash call !! There's a reason, Dale. And, it's NOT financial. If there was merit in the proposal, the $$$ would be there !!! Do you think for a minute that Patterson et al are walking away from an "opportunity" ?? That would be the first time, wouldn't it ?? $2MM is pocket change to those guys !!! You commented as though EKHO and ELH are similar prospects when in fact they are vastly different, Dale. The BKP prospect most similar to EKHO is the Cal Canal prospect. And, recall that BKP's initial completion effort on the CC#1 well also yielded non-commercial results. JMHOBWDIK. Best regards, grayhairs