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Gold/Mining/Energy : Amalgamated Explorations (AXPL) thread 2 -- Ignore unavailable to you. Want to Upgrade?

To: S. Thomas who wrote (199)	8/2/1998 5:55:00 PM
From: Jeff Williams	Read Replies (1) \| Respond to of 269

TO: ALL -- Here's a copy of an E-mail I received from Jon Vaux, for your information; -------------------------------------------- Subj: fascinating article in Wyoming newspaper Date: 98-07-31 17:57:55 EDT From: webmaster@findoil.com (Jon Vaux) To: info@findoil.com RE: ARTICLE IN THE CASPER, WYOMING, STAR_TRIBUNE NEWSPAPER Cave Gulch Operator Pleased With Success- by Jason Marsden, Star-Tribune staff writer Vail, Colo. - The Cave Gulch field in western Natrona County is such a staggeringly large reserve of natural gas that it just about blew itself up one night back in February. Ralph Reed of Barrett Resources, the Denver-based company that has produced billions of cubic feet of gas since 1994 in the 450-acre parcel near Waltman, still rues the Valentine's day 1998 weekend when a daringly deep well in Cave Gulch came within a whisker of blowing itself to bits. Standing on the site if the Cave Gulch 1-29 blowout that day, he recalled, the Earth shook and your coffee had whitecaps on it," Reed told the annual conference of the Independent Petroleum Association of the Mountain States (IPAMS), which met here this weekend. Steve Adam of Nabors Drilling, who was in contact with the field crew by the telephone while battling a snowstorm to reach the well site from Denver that day, said the incredible kick of pressure from the deep formations nearly overwhelmed the equipment shooting drilling mud two miles into the countryside. When the phone line to the site supervisor went dead briefly, Adam said - just after the fellow had remarked, "I don't believe it, it's gonna go" - he was ready to call Barrett headquarters and tell them, "Kiss it goodbye." But the well's mammoth gas strike was flared and choked and otherwise constrained into submission, and the well has gone on to produce 6 billion cubic feet of gas in just 150 days, Reed told conferees. "It's the best well I've ever seen, and in a pretty good field," chuckled Reed, President of both Barrett and of IPAMS. Barrett hoped the Cave Gulch field would turn out to be "a small look-alike to the Madden Field" near Lost Cabin, where about 2 trillion cubic feet of reserves are thought to exist, Reed said. But those hopes were based on speculation that a huge gas reserve awaits some 20,000 feet or more beneath the surface in formations the company hasn't even tested yet, he added. He noted that the production is beginning to pay dividends in the form of county and state tax revenue and gave credit to U.S. Rep. Barbara Cubin, R-WYO. and the Natrona County commissioners for backing the development at a crucial stage. Two more wells are being drilled this week to test the Frontier and Muddy formations - where the huge production is now coming from - as well as the deeper Lakota Formation, the original suspect for harboring the lion's share of the gas. Barrett will keep looking deeper - its "ultradeep" test well is headed to more than 21,000 feet of depth - until it hits a confining geological layer he said. But with design of such deep wells proving expensive - topping $14 million each - the novelty of the challenge is wearing thin, Reed acknowledged. "As I told (founder) Bill Barrett," Reed said, "damn, we're glad to see that granite down there - so we don't have to design the one to go below this." END As many of you are aware, Amalgamated owns a working interest in these wells. Prior to drilling of the Cave Gulch 1-29, Amalgamated predicted the depths of the pay zones by utilizing the Company's Electrotelluric Survey. We are excited to report the survey was correct in accurately predicting the pay zones at or around the approximate depth, including an enormous pay zone at the depth the well attempted to blowout. This is just another example in realizing the value of the information given by the Electrotelluric Survey. Amalgamated is also pleased with the Electrotelluric Survey predictions on the "ultradeep" test well. Amalgamated expects this well to be very valuable, once completed successfully. Don't forget, you are invited to attend a meeting in Denver on August 21st, at the Petroleum Club. The Rocky Mt. Association of Geologists have invited Barrett Resources to speak on Cave Gulch. Jon Vaux Amalgamated Explorations 1-888-999-8787