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

To: kingfisher who wrote (714)	7/3/1998 11:05:00 AM
From: grayhairs	Respond to of 1207

Hi Richard, RE: "What is the next step in the procedure?" Next step is retrieval of the pressure gauges that were hung in the bottom of the well during the flow test (and an analysis of the data gathered). The analysis will guide them in deciding whether or not they need another acid stimulation (They do!! Remember, that the first acid job is like sex, difficult to get right the first time). But, the next acid job can be deferred until just before placing the well on production. They will also examine the data to see if they have any "meaningful" pressure depletion (They won't. They didn't produce enough from this LARGE and HIGH pressured reservoir to be able to see any pressure decline that would be conclusively "depletion" and not just "gauge error".) They will examine the pressure data to see if the transient analysis tells them anything about proximity of the wellbore to a reservoir boundary. They will enter into a gathering and processing deal with one of the two gas plants in the area (Gulf Strachan Plant, IMHO) and then they will proceed with their facilities work to tie in the well. They could easily be on line by ~ November 1, 1998, if they want. They will continue to acquire land(s) of interest in the area. First Crown sale of any land in the area is August 19. But the postings for that sale are minor (only 1.5 sections) and are designed just to "test the waters". It is the followup sales that will be the ones to watch. Apache have until ~Aug 27 to ELECT to drill their next earning well. Then the have till ~Oct 27 to actually spud it. I personally expect that they will spud well before their deadline so as to be drilling into a significant land posting, but that remains to be seen. And, they of course will be deciding when they want to produce the liquid rich shallow zones that they encountered in their 3-22 well. (They almost certainly will "twin" the 3-22 well to enable the near term production of the shallow horizons. But, when??) RE: "Does Apache have enough information at this stage to make a decision on a second well?" I believe that they will have made that decision quite some time ago. But, if not, they are now within days of having all of the info that they will have. But, when will they actually spud, even if they know now that they are going to proceed with the next well?? RE: "Were you aware that on June 26 Apache announced that they will attempt a financing for $500 million?" No. Thanks for the news. Let's hope they spend about $15-20MM of it for Strachan area earning!!! Later, grayhairs