Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : American International Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: Juan Dominguez who wrote (5851)	12/15/1997 2:59:00 AM
From: Ken Wesley	Respond to of 11888

Juan, what is the proven reserves of the Tengiz field? I forgot what the stated figure is. If the Chikuduk structure does in fact contain oil, this could get very interesting. Has there been any drilling on this site at all. It seems like this area is getting a lot of attention and thus the need for more siesmic data. Is it unusual for such a large concession to be licensed with the condition that 90% be given back after choosing what may well be the best structures? Incidentally, by comparison, the country of Kazakstan is almost four times the size of the state of Texas. Ken W

To: Juan Dominguez who wrote (5851)	12/15/1997 10:03:00 AM
From: qdog	Read Replies (2) \| Respond to of 11888

Well, as I've whined about often, drill it and lets find out. They are a couple of caveats to his thinking, which if you do the total what ifs he might agree to some and not agree to others. It's always a joke that you can get a roomful of geogolist in a room and not get any two to agree. It could very well be larger than Tengiz, when all said an done, it area. Now let's say the layer of strata that bears the hydrocarbons is only 40 ft thick and porosity is tight. Tight meaning that the strata ability to store the oil. You have to have nice little channels for this oil or gas to reside. You then drill the field and it yields on a sustain flow test of say only 500 bbls. per day. That is significant in the grand scheme of things. More wells have to be drilled to get to a prouction level of say Tengiz. The flipside of the argument is, let say, the avgerage strata of hydocarbon is 100 ft. and high porosity. Well, buy Cuban cigars and Dom Perigon, we are all rich. That could translate into 5000 bbl/day in flow test. The cost of develpoment just drop 10X or more profitable. Less wells to get to a productiion of Tengiz. The other thing to consider here is how deep is that target layer? Is it 4000 ft? 6000 ft? 8000 ft? There is a difference in time/cost between those three. The deeper, the more things can go wrong and run the cost up. The more in material cost between them in casing, cement, mud, rentals, etc. Then again there is yet another scenario, where in that region is the traps for the oil. Let suppose they drill a well and encounter thick layers of soucre rock, but no area of porosity and permeability. This area could be 50, 60, 70% of that scenario. The trick will to find the fault, fracture, uplift or any host of anaomolies in the earth crust that has this ligid or gas trapped. So you could have a situation of drilling 5 or 10 wells before finding that area. So in this little explaination, you can see that the speculationof above ground is just that, speculation. The final arbiter is the drilling to find out just what is downhole. I've invest in this stock because there is a chance that they do have something, mine you it's a holding in my total portfolio that is highly insignificant as of today. When that first well is drilled and I see what the results are; there is plenty of money to be made then. But I do have that cheap entry. I added some profits from options trading the other day on warrants, but again it's insignificant. I still think a JV will be brought in at a nice and reasonable chuck of money that will giove AIPN a nice cash reserve to drill with and drive the stock price to a point of triggering the warrants. I expect them to have between 50-100 mil in cash and loans when that first well is spud with their participation cost being around 30-35% of the well.

To: Juan Dominguez who wrote (5851)	12/15/1997 11:18:00 AM
From: qdog	Respond to of 11888

1. Not really, as far as the acquisition. They will start processing and evaluation almost immediately. Couple that with it being an ongoing process. Other than that it hard to speculate. Let say that they layout over Chikuduk say 8 lines of 60 km long each by 16 lines ea at 20 km. that's about 800 km total line km. That is coupled with exisiting data. If the land is easily navigatable and accessible; ie flat like East Texas or Kansas, then it's easy and fairly quick to do. If it's rough terrain, such as dessert or similar to New mexico with mesa's then it is far more time consuming. I really don't know the terrain. Somebody might give a better idea. Processing and evaluation is the time consuming process. They do have an upper hand in that they have existing data that if verified by the new then that process will be quickier. New data is differing from the old data then that throws some cold water on the processs and evaluation. 2. There may have been a typo or they are looking at exisiting data postulating that it extends further. Again I really don't have any idea about it from the limited access to information. Realize that I'm trying to be broad and give you all possible scenarios in any and all speculation. We all have limited information and are relying at this time at want AIPN wants us to know. I had an amusing thought just now. Whatever happen to Huddleston? Are they still in the picture?