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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (11393)	7/19/2006 9:42:20 AM
From: bruno_1	Read Replies (1) \| Respond to of 25575

they do not have the same problems to deal with as cll, but my point was that if you can bring the oil out of the ground you can find a way to bring it to market. this is from their operations update: "The oil is light, sour crude with 40 degree API gravity and a gas-oil ratio of approximately 1,200 mcf/stbo. Produced oil is currently being stored at the field processing facilities, which have a capacity of 70,000 barrels of oil, and at a nearby rail terminal. From there, it is transferred to the buyers for transportation by rail to domestic and export markets. The gas is currently flared. Work has recommenced on the Central Production Facility (CPF). The local contractor is working with an internationally recognized engineering and project management group to expedite the completion. Additionally, a major contract has been awarded for the installation of fifteen sets of flow lines for the new well locations, which will expedite the placing on production of the wells completed later this year. A separate contract has been awarded for the fabrication of the metering and pumping facilities to make the interconnection to the KazTransOil pipeline, which is located approximately 1,500 meters from the CPF. It is intended that the CPF be operational in the fourth quarter 2006, allowing direct oil export by pipeline. This should allow improved oil pricing and significantly reduce transportation and handling costs. The oil has low sulfur content, but requires treatment to lower the sulfur and mercaptan levels to required specifications. The Company has been evaluating the chemical treatment of the oil in a batch process to lower the sulfur and mercaptan levels. Preliminary results of this chemical process are encouraging. The Company is also exploring opportunities to process the oil at third-party facilities. Either of these alternatives may eliminate or at least delay the requirement for installation of a demercaptanization unit."