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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (4640)	2/9/1998 10:00:00 AM
From: sgc	Read Replies (1) \| Respond to of 24921

KERM/HEGCO Thanks for the response to my email Kerm, and for your posts on HEGCO on KERM'S CORNER. HEG just re-entered the El Grande well, and ran modern FMI logs on the borehole. As a consequence, they have cased the hole from surface to total depth of 12,600 feet. My thinking here is that perhaps they have found shallower uphole reservoirs as well as the initial reservoir which is a 5000 ft. carbonate structure. The company originally indicates 1 TCF Possible Reserves, the task before them now is to prove up these reserves, and so far according to news releases, they have been very encouraged by the results. Wells in the analogous Wilburton Field, very nearby have produced in excess of 35 MMcf/day of sweet dry gas, and total field production has been in excess of 1/4 TCF. Depending on the El Grande re-entry results here, a follow-up well was planned for March, but this may have moved back some. It is my understanding that some of the follow-ups may be Farm-In wells with Southerwestern Energy Production Co. as they own some of the acreage over the prospect area, HEGCO has matured their land position with respect to other acreage over the Prospect. Should HEGCO bring in a successful well, they can tie-in quickly ( less than 3 months ). A recent alliance with Helmsdale Financial assures HEG access to $22 Million CDN should they require these funds, but I am hoping the re-entry and follow-ups in Arkansas will generate significant cash flows for HEGCO. Any other thoughts or information regarding HEG out there. Regards, Steve