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Gold/Mining/Energy : Bearcat (BEA-C) & Stampede (STF-C) -- Ignore unavailable to you. Want to Upgrade?

To: Tommy D who wrote (1481)	9/16/1998 1:51:00 AM
From: grayhairs	Read Replies (1) \| Respond to of 2306

Hi Tommy, While raw sour gas is sometimes (very rarely and definitely not the norm) sold in the field, sweet natural gas is the usual saleable commodity. Quoted natural gas prices are for pipeline spec gas (sweet, with only minute water vapor and other impurities) at standard conditions (Eg. 14.65 psia and 60 degrees Fahrenheit). Sour gas must be processed through a gas plant to remove H2S, CO2, water vapor, and heavier hydrocarbon constituents so that a saleable "sweet" residue gas remains. Removal of these constituents results in "shrinkage" of the raw gas produced volume. In addition, the processing of a sour gas stream is more costly than that of a sweet raw gas stream. For "scoping" purposes you will not be too far off if you assume that the shrinkage of the 7-25 raw gas stream will be in the order of 40% and that the processing cost will be in the order of $0.65/mcf of raw gas inlet (i.e. ~$1.10/mcf of sales gas if shrinkage is 40%). Thus, for a current one year gas contract at ~$2.65CAN/mcf delivered at AECO 'C'(the common Alberta reference Hub), you would need to deduct ~$0.15 for Nova transportation charge, ~$1.10 for a processing charge, ~$0.10 for gathering and operating and you'd get a cash flow of about $1.30/mcf (before deduction of any crown and other royalties). So, if the well produces 10 MMCF/d of raw gas and incurs 40% shrinkage, the sales gas revenue (before royalty deductions) would be about $7,800/day. Hope this helps. Later, grayhairs

To: Tommy D who wrote (1481)	9/16/1998 7:36:00 AM
From: Bearcatbob	Respond to of 2306

GAs Price and Raptor in the Turner Valley: Tommy, I noticed the gas price move also and thought the same. Here is something I copied from something put out by Raptor re the Turner Valley: Turner Valley Alberta is scheduled for Winter of 98/99. The excitement surrounding this play was indirectly responsible for Raptor stock price spiking to .80 cents back in February of this year when Imperial and Berkley were drilling a Turner Valley well located just 2.8 miles to the south of our Raptors land. A description of Turner Valley is as follows: In October 1997, the Company acquired a 24% interest in 4,000 acres (960 net acres) at Turner Valley, Alberta located approximately 15 km Southwest of Calgary. Raptor has reprocessed 42 km of seismic on the lands and expects that a 3,500 meter exploratory well will be drilled to test the thrusted and regional Mississippian formations by the end of 1998. Raptor lands are located approximately 21/2 miles from the recently completed IMP Berkley Turner Valley 2-21-21-3W5 gas condensate discovery. Through geological and geophysical interpretation Raptor has developed a 200 BCF potential Turner Valley thrust fault exploitation/exploration prospect. This prospect is modeled after the Shell Sarcee closure on the same thrust fault several miles to the north where two wells have produced more than 170 BCF and 500,000 barrels of condensate. In addition to the geophysics there is a well on the edge of the prospect where the thrust fault cut through the wellbore. This well drilled in 1970 tested 5MMcf/d plus liquids from a small sliver of the zone. Geophysical interpretation on the Raptor lands indicates 150 feet of incremental pay section structure from this wellbore. Bob