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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: viper who wrote (657)	6/19/1998 12:36:00 PM
From: grayhairs	Respond to of 1207

viper, By "show us the goods" I mean show us a "high gas production rate". (They've already shown us gas at a low production rate.) A single point test involves flowing the well at one rate only throughout the entire test. For this well that rate would likely be in the order of about 2 or 3 MMCF/d. By flowing on a single low rate, Apache would not be showing us the "high end" of what the well capability is (Eg. Can it do 5, 10, 20, or 50 MMCF/d when that choke is opened up?? Unless they show us a bigger flare, we have no way of estimating the expected production rate of the well, and so it makes it risky for competitors to bid much for lands that Apache might want.) If they produce at only a modest low rate, they are not showing us "their goods". If they are not doing a single point test, then they will already have shown more (i.e. 3 higher rates if a 4 point test). Damn it!! Damn it!! Damn it!! I should have gone out again Wednesday nite!!! Obviously the juniors want this well off the tight hole status as soon as possible. But, at the same time NOT ONE OF THESE JUNIORS is going to shoot themselves in the foot by not agreeing to a slight delay that would be in its best interest. I am not saying that there will be a delay in spudding the next well. Hell, it might spud in the next few days for all I know (although I have not yet seen a license for it). I only suggest that there can be MANY good and valid reasons why the next well MAY NOT spud within 120 days of rig release of the first well. I for one have no intention of selling my shares if the next well does not spud before day 120 and we still are under a tight hole status. That would indeed be very foolish, IMHO!! [And, while it is possible I believe that it is unlikely that any of the juniors would want to KILL the farmout deal with Apache and have to start shopping it all over again if Apache had a justifiable reason to postpone the spudding until say the 150th day.] Do understand that Apache could spud the 2nd well tomorrow and still preserve the tight hole status on the 1st well until next May. Or they could lift the tight hole status tomorrow and delay spudding until ???? provided that they have the mutual consent of all parties. The two, spud date and tight hole status, are not dependent variables. No permits (licenses) that I am aware of but I haven't checked for a while either. I did see a surface lease being prepared when I was out there on Tuesday but I think it had to be too far north to be on the lands controlled by this group. As I commented earlier, this area is "hot" with activity now. Later, grayhairs