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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (123971)	9/2/2009 1:45:20 PM
From: Big Dog	Read Replies (1) \| Respond to of 206093

I think I read that the water depth is just over 4,000 feet. Still expensive, but a magnitude or two less than the development costs at 10,000 feet. big

To: CommanderCricket who wrote (123971)	9/2/2009 2:10:48 PM
From: JimisJim	3 Recommendations Read Replies (1) \| Respond to of 206093

CC: while I agree with your assessment, just one little correction... BP is using the Transocean Deepwater Horizon platform in a little over 4,000 ft. of water... the TD is still 35,000 ft. from rig floor... so... What BP isn't talking about is how long it took them to actually get their current "crown jewel", Thunderhorse, online and making money -- many delays. The other thing nobody is really talking about is that nobody... let me repeat that NOBODY has ever produced a single bbl of oil from the same sort of rock formation where they discovered oil at Tiber prospect... Jack is in the same geologic formation as Tiber as are BP’s Kaskida, found in August 2006, and Buckskin, a Chevron find in February of this year... It will be at least 5-10 years before any of this oil comes to market... OK, they've produced some oil at Jack during testing, but still not a production well by any means... So your point is well taken... Sidenote to elmat: CC was clearly being facetious about this oil being clean and easy to produce, not slamming PBR at all... Jim

To: CommanderCricket who wrote (123971)	9/2/2009 2:18:59 PM
From: Salt'n'Peppa	5 Recommendations Read Replies (1) \| Respond to of 206093

"The well cost them 10x more than buying a company like NPE with billion bbls of profitable bitumen resources if crude can stay above $65." It was likely around $200-250 million for BP to drill that discovery well. Surely you aren't suggesting that NPE can be bought for $20-25 million. NPE have around 100 million shares (incl. options & warrants) and trade at $0.50. With premium, they might get it for $70MM. Care to guesstimate the cost of purchasing and then producing NPE's bitumen to the tune of 200k bbls/day? My guess based on CNRL, PetroCanada, etc. is about $10 billion. NPE is "estimating" 2-3 billion barrels of bitumen in-situ. I think you'll find the deep water option is cheaper. Why the blinders, CC? You seem to be down on every positive development in the oil industry. S&P