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

To: kingfisher who wrote (843)	9/11/1998 2:54:00 PM
From: grayhairs	Respond to of 1207

Hi Richard, Only 40 feet of pay, 3 different sands, 10,689 foot well, and offshore in Gulf of Mexico!! Golly I guess you don't always need 500 feet of pay in a deep well to have what has been referred to in this release as a "discovery" (And, as YOU know, a discovery is understood to be "economic"). Richard, understand that I have NO INFO that says Apache is likely to buy out one or more of the sisters. I am NOT trying to start any rumors nor to infer any significant "probability" of a takeover. The press have reported that Apache have their war chest well filled. And, everyone in Calgary knows that Apache have talked (and are again talking) with much larger "targets". My sole purpose in reminding threadsters that "friendly buyouts" are a possibility (Apache have said they will NOT do a hostile one), was ONLY to illustrate that there may be a perfectly rational reason for not drilling another earning well, at this time!! Not drilling another earning well (at this time) does not reduce the magnitude of this MAJOR discovery. The reserves penetrated by 3-22 have been discovered ! Some significant production will be required to "accurately quantify" those reserves irrespective of whether they are penetrated by only 1 or several wells. Obviously, the more penetrations the better, but... The number of wells required to exploit the deep reserves is as you have suggested a matter of speculation. In Amoco's Blackstone Swan Hills pool (1.1 Tcf) there are only 2 producing wells. Again, my point is that there may be "acceptable" reasons for Apache electing to not drill another well (at this time)!! Maybe the Apache 3-22 well shall also have prolific capability and preclude the need for more wells. I don't think so, but maybe!! Apache knows that if they simply elect(ed) not to drill the option lands, they'd likely lose "their right" cause grayhairs and Barbe would certainly farm-in (in their stead)!!! <LOL> Have a great weekend. I'm taking a long one myself and will return Tuesday. Later, grayhairs