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

To: dvdw© who wrote (160354)	11/27/2011 9:19:14 PM
From: Keith J	Read Replies (1) \| Respond to of 206150

sec.gov $17/boe production $2/boe G&A ~$20/boe DD&A ~$5/boe non-capitalized interest Plus obviously the equity shareholders expect returns on investment. Plus any profit will be taxed (income).

To: dvdw© who wrote (160354)	11/28/2011 8:06:29 AM
From: CommanderCricket	14 Recommendations Read Replies (1) \| Respond to of 206150

Oh man, do I have to explain it all! to you.... First off I'm never going to convince you oil doesn't come from magma or wherever instead of organic origin on earth. So your premise that Bakken shale oil is cheap to develop from BEXP or others is not the worth effort. If you think BEXP costs are so low, buy the stock. Few others have giving me a "pass" on IOC, why should you? A WORD ABOUT ABIOTIC OIL There is some speculation that oil is abiotic in origin -- generally asserting that oil is formed from magma instead of an organic origin. These ideas are really groundless. All unrefined oil carries microscopic evidence of the organisms from which it was formed. These organisms can be traced through the fossil record to specific time periods when quantities of oil were formed. Likewise, there are two primal energy forces operating on this planet, and all forms of energy descend from one of these two. The first is the internal form of energy heating the Earth's interior. This primal energy comes from radioactive decay and from the heat energy originally generated during accretion of the planet some 4.6 billion years ago. There are no known mechanisms for transferring this internal energy into any secondary energy source. And the chemistry of magma does not compare to the chemistry of hydrocarbons. Magma is lacking in carbon compounds, and hydrocarbons are lacking in silicates. If hydrocarbons were generated from magma, then you would expect to see some closer kinship in their chemistry. The second primal energy source is light and heat generated by our sun. It is the sun's energy that powers all energy processes on the Earth's surface, and which provides the very energy for life itself. Photosynthesis is the miraculous process by which the sun's energy is converted into forms available to the life processes of living matter. Following biological, geological and chemical processes, a line can be drawn from photosynthesis to the formation of hydrocarbon deposits. Likewise, both living matter and hydrocarbons are carbon based. Finally, because oil generation is in part a geological process, it proceeds at an extremely slow rate from our human perspective. Geological processes take place over a different frame of time than human events. It is for this reason that when geologists say that the San Andreas fault is due for a powerful earthquake, they mean any time in the next million years -- probably less. Geological processes move exceedingly slow. After organic matter has accumulated on the sea floor, it must be buried by the process of deposition. In geological time, in order for this matter to be a likely prospect for hydrocarbon generation, the rate of deposition must be quick. Here is an experiment you can conduct to get an idea how slow the rates of deposition are. Place a small stone on the bottom of a motionless pond. Take another stone of about the same size and place it at the mouth of a small stream, a stream where the current is not so great that it will sweep the stone away. Check both of these stones yearly until they have been buried by deposition. You might see the stone at the mouth of the stream covered over within a few years, but it is unlikely that you will see the stone in the pond buried within your lifetime. It is a simple geological fact that the oil we are using up at an alarming rate today will not be replaced within our lifetime -- or within many lifetimes. That is why hydrocarbons are called non-renewable resources. Capped wells may appear to refill after a few years, but they are not regenerating. It is simply an effect of oil slowly migrating through pore spaces from areas of high pressure to the low-pressure area of the drill hole. If this oil is drawn out, it will take even longer for the hole to refill again. Oil is a non-renewable resource generated and deposited under special biological and geological conditions.