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 : first star energy FST on the ASE -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (216)	4/25/1998 9:24:00 PM
From: grayhairs	Read Replies (4) \| Respond to of 754

Hi Ed, At the time that post was written, there was still hope for the Leduc zone. Unfortunately, the Leduc wasn't present in the Strachan well. (But, there are several Leduc wells in the area that have in the order of 300 feet of pay and that came on at rates of 50-75 MMCF/D). I haven't run a CF/share number for FST, but this well will contribute very close to nil for the next year. A 50-75 MMCF/D rate is not suitable for the Swan Hills (I'd expect something more in the order of 10-15 MMCF/D). The Swan Hills is obviously a VERY, VERY NICE FIND!! I'd take it in a minute, but it isn't the Leduc in terms of reserves or productivity. For the well in question one should NOT believe that it has proven up 1+ TCF of gas. IMHO, the Apache well MAY add (to the 100% interest) something in the order of 30-50 BCF of proven reserves and 100-150 BCF of probable additional reserves, IF successfully tested in the Swan Hills zone. Talk of any larger reserve numbers without additional drilling (or production testing of a few BCF) is pure and total unadulterated hype. Those wanting you to believe that the well has proven up 1.3 TCF of gas only want you to buy their stock at ridiculously inflated values. It will take at least 6 more properly spaced and successful wells to be able to talk PROVEN reserves of that magnitude. At best, today we have 50 Bcf proven, 150 Bcf probable and xxxx Bcf potential reserve. (This assumes that they have a DST confirming producibility, and I don't know if they do) We continue to have very strict safety (security) measures enforced around all wellsites located in sour gas areas. Later grayhairs