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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: Dave K who wrote (454)	2/1/1998 1:43:00 PM
From: Jim Daly	Read Replies (1) \| Respond to of 1261

Sorry you are correct. When I looked at a map of Borneo I saw that there are 2 towns on the north eastern coast called Tanjung Selor and Tanjung Redep I assumed that Tracers' holdings should be near there. I double checked the annual reports and see that I am mistaken. SULAWESI NORTH TANJUNG BLOCK NORTH TANJUNG BLOCK Tracer's 1.2 million acres of the North Tanjung Block ("NTB") is situated onshore the island of Borneo in the Indonesian provinces of South and Central Kalimantan. It is located immediately to the north of the Tanjung Oil Field, a major oil accumulation with over 800 million barrels of original oil in place. This field started production in 1938 from the Eocene Lower Tanjung Formation sandstone and peak production of 49,000 BOPD was reached in 1963. To date, over 125 million barrels have been produced. The same reservoir formations, trap types and source rocks are present in the NTB. Existing infrastructure in the area includes an underutilized 20" pipeline running across the eastern portion of the Block on its way to a 250,000 barrel per day refinery at the East Kalimantan coastal city of Balikpapan. The large liquefied natural gas plant located at Bontang, approximately 200 miles from the northern part of the Block, may provide access to a market for any gas discovered. These industrial facilities improve the economic viability of any discovery on the Block, by enabling low cost and rapid exploitation in the event of a sizable discovery.

To: Dave K who wrote (454)	2/3/1998 1:41:00 PM
From: Peter G. Troyan	Read Replies (1) \| Respond to of 1261

Dave, Good to hear from you again. Have missed your insight on this thread. I will try to answer some of your questions if I can. 1.) Unocal....This would seemingly be a great marriage...would it not? I presume that Unocal, being a very large independent, is waiting for Tracer to hit before joining them. This could be a very profitable scenario if Tracer were to drill in the Northern sector and make a large discovery. I think Unocal will want to wait for this to happen, before signing a jv contract. 2.) Tracer has used 2-d enhanced seismic, which is obviously cheaper than 3-d, but at the shallow depths of the structures, it is my understanding that the data is as good as 3-d without the cost. 3.) The reason they have not drilled any deeper, is that the geology is very promising at the shallower levels. There are numerous potentially large structures at these shallow depths. Why drill 10,000 feet when you have plenty of potential at shallower depths. The geology dictates where and how deep you drill. The geology is complex, but the potential is definitely there. Jacobs has said that " there may not be any obvious elephants there....but I am relatively sure there is a herd of water buffalo there, with an equivalent amount of meat." 4.) I think they might notice a drain of 10 or 20,000 bopd if they drilled into that structure..... Pete