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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (7778)	11/8/2000 9:11:24 PM
From: The Osprey	Read Replies (1) \| Respond to of 24900

Hi Russett, Most of the remedial work involves bringing on the wells slowly and in some cases as ids common with Louisiana wells there is salt water to deal with.Others do require work and the company did say in the release that they were rocked up when Union Pac Resources(UPR) left them.That was just prior to them being taken over by Anadarko. Why did they walk away from them.After all what does it cost to drill those depths and the number of wells they drilled????Did UPR have cash flow problems due to the cost of oil at the time...around 10.00USper barrell.There was production but not feasible to justify the costs expended and the price of oil and gas at the time. As to the great deal it is my understanding that this was a JV play involving a group of property owners and when UPR was taken over the leases were not transferred and the people involved were not happy with Anadarko being involved.Hence the non-bid basis on the deal and the low price IMHO. From what I am hearing one well is gas only and has been shut down but will require setting a rig over it and unblocking the plugs.The other had no piping or wellhead fixtures on it and is presently being piped to another wellhead where the appropriate fixture are available.Get this....It was drilled flow tested and then they were taken over.I understand the company is quite excited about this well and are calling it a virgin well. I think if I recall in the prtess release the company is estimating 2.5 million to complete the work necessary to bring these wells into production.Small compared to the cost of drilling a new well at the depoths they are at.All fixtures and wellheads are in place for most of the wells and it is my understanding that over 100 million was expended by the previous company in drilling these wells. I am holding on to my shares and buying and will buy if it goes to .50 if I have to as this has tremendous growth and I am betting this will be a real winner.I will not slam other plays though regardless. The Osprey