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

To: Dale Schwartzenhauer who wrote (15583)	4/24/2002 10:57:37 AM
From: SofaSpud	Read Replies (1) \| Respond to of 15703

One well (used to be BKP#1, now ELH#1) has been on production, for just over a year now. If memory serves, it produced as much as 12 mmcf/d early on, when prices were through the roof, so it paid out quite quickly. What has happened since isn't as clear. We know that production is now very low, perhaps 1.5 mmcf/d. We're not entirely sure why. The water cut was always high, as is typical of wells in the area. Now we're told that water disposal is the constraint, and that production from #1 can't be ramped up again until they've drilled water disposal wells. Nothing else has been tied in. BKP #2 was completed, but the completion was botched when the drill string was cemented across the most promising zone. Consequently the flow test was reported at only some low number (1-2 mmcf/d?). # 4 and #9 are thought to be ready to test, but have not been, reportedly due to wrangling amongst the JV partners about bills. Longs on this play have repeated the mantra "the gas is there" since the blowout produced something like 100 mmcf/d. It's starting to look like that's academic, given the implementation over the last two years.