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

To: grayhairs who wrote (842)	9/10/1998 11:27:00 PM
From: kingfisher	Read Replies (1) \| Respond to of 1207

Grayhairs, This announcement by Remington Energy and Apache attracted my attention by the fact that they intend on producing a well with only 40 net ft of pay in 3 sands. It appears insignificant to what Strachan may have. Assuming your 280 BCF target turns out to be correct,all the cards are in Apache's favor to buy out the sisters interest in Strachan. It is a very likely scenario due to a record low Canadian dollar,natural gas prices in a temporary lull,drilling costs have now dropped dramatically,financing costs at record lows,huge warchest (as you pointed out). Cash starved juniors would probably eagerly accept a reasonable offer. To be economical a reservoir of this magnitude would probably have to be drained over a 20 year period.Based on some assumptions of anticipated productivity for Strachan,I would have to project a minimum of 3 more deep wells and several more shallow wells for maximum financial impact.I am only playing with numbers and without any details I can only speculate that the scenario of the sisters developing this pool on their own without a partner with deep pockets is unlikely and Apache knows this. Any how have yourself a great weekend.(Getting a jump on this one again)Just love these 4 day work weeks! Richard ------------------------------------------------------------------------ Remington Oil sees '99 High Island output DALLAS, Sept 9 (Reuters) - Remington Oil and Gas Corp. said Wednesday it expects production from a natural gas discovery on High Island Block 86 by the end of March. The OCS-14155 #1 well, located offshore Texas in the Gulf of Mexico, was drilled to a depth of 10,689 feet and logged 40 net feet of gas pay in three sands, the company said. It said the well is being completed, with first production anticipated late in the first quarter of 1999. Remington owns a 33 percent working interest in the well, which is operated by Apache Corp. (NYSE:APA - news). ------------------------------------------------------------------------ More Quotes and News: Apache Corp (NYSE:APA - news)Remington Oil and Gas Corp (Nasdaq:ROILB - news) Related News Categories: US Market News ------------------------------------------------------------------------ Help ------------------------------------------------------------------------ Copyright c 1998 Reuters Limited. All rights reserved. Republiaction or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?

To: grayhairs who wrote (842)	9/11/1998 10:43:00 AM
From: Werlick	Read Replies (1) \| Respond to of 1207

Good Morning grayhairs, I and most posters on this thread have never questioned your "field abilities". You know I appreciate your insight and field feedback. I am doing my own DD and your information and knowledge is a part of the equation. I am not familiar with the Esso/BEA/STF play, however; I am happy for you and all investors. My only natural resources investment is FST. I do not see how things can remain "tight lipped" thru the Sept. 30 land sale when we come off tight hole status on the 17th. I agree that Apache may release a "carefully crafted" release, although I have not seen one. My gut tells me we have something big here and the sisters will be bought out at a premium. Please share with me once again your reasoning behind your belief in the 3-22 deep well. Thanks, Werlick.