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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?


To: robert landy who wrote (162)11/24/1998 4:33:00 PM
From: Flea  Respond to of 15703
 
Thanks.

A Bellevue spokesman said it could take one to two weeks just to gain
access to the well to begin to extinguish the fire.


Looks like (at least) two weeks of crazy trading ahead of us.

Good luck to all.



To: robert landy who wrote (162)11/24/1998 4:54:00 PM
From: Salt'n'Peppa  Read Replies (2) | Respond to of 15703
 
Robert,

Thanks for the forwarded article - it's good to know that ELH is now in the headlines.

A couple of points of clarification:

Firstly, the fact that the rig blew up is not a problem for the partners involved, as liability insurance is always carried just for such an event as this. There should be no negative impact in the share prices.

I have a friend in Bakersfield (he manages a rig in Africa) who went out to the wellsite and estimated that the flame was 400 feet tall this morning. A Stanford source gave me an estimate of 100 MMcf/day gas being flared right now, with condensate flowing and burning all over the rig-site, at pressures of 18,500 psi.
In spite of the damage, this is fantastic news, especially when you consider that this is all coming from only 17 feet of open hole below the last casing shoe, at 17,660 feet. This well first had to be shut in whilst drilling, over two months ago, when the first gas kick was encountered at approximately 16,300 feet. Just imagine what will happen when they perforate the 1000 feet of hydrocarbon bearing sand behind this casing!!!

The flare we are seeing is not actually from "escaped gas from the well casing". The last casing was cemented off and pressure tested to ensure a good seal, before the 17 feet of new formation were drilled.

Chances are that the well could be under control in as little as 3 days, but of course it could take longer if there are additional problems.
This well will be controlled using dynamite, which effectively "snuffs" out the well. Drilling a relief well at this depth would take another 3 months!!!!!

This is excellent news, as gas is a godsend when oil is at all-time lows and natural gas prices are high. Condensate is also worth about twice as much as oil, per barrel.
Winter is coming, California is a huge user of energy, all the pipeline and refining services are right at East Lost Hills from previous projects and tie in costs for this well will be very small. The group is already talking about drilling delineation wells to prove up the size of this new field. Somehow, I don't think they will have a problem getting hold of a rig or two.

Given the flow rates and pressures that we are seeing here, this is definitely a big affair.

Good luck to all.



To: robert landy who wrote (162)11/25/1998 2:51:00 AM
From: robert landy  Read Replies (2) | Respond to of 15703
 
If anyone wants to see a pix of the fire go to:
test.bakersfield.net.
You will find the story everyone already knows plus an awesome picture of our fortune roaring in glorious technicolor.



To: robert landy who wrote (162)11/26/1998 2:01:00 AM
From: robert landy  Read Replies (2) | Respond to of 15703
 
Some more news about the blowout. Read past the information in regards to the blow out, There is some hinting at how important this find might be.

Crew begins task of taming raging
well fire

Filed: November 25, 1998

By BOB CHRISTIE
Californian staff writer


Well control specialists braved heat intense enough to melt steel
Wednesday as they began what may be a weeks-long effort to cap a
natural gas well that exploded near Lost Hills on Monday night.

A four-man firefighting team from Boots & Coots International Well
Control, headed by 20-year veteran James Tuppen, used bulldozers to
begin clearing the shattered hulks of support equipment from around the
now-destroyed drilling rig at the site.

What once added up to millions of dollars worth of equipment must now
be dragged, pushed or pulled away from the well, which is spewing
millions of cubic feet of natural gas and condensed hydrocarbons each
day, feeding an immense orange fireball visible for miles.

Tuppen's crew, occasionally soaking their fire resistant clothing with
water, worked within 30 feet of the blazing well on foot and in
bulldozers equipped with metal cab covers to protect the driver. A fifth
member of the team acts as a hazardous materials specialist and support
person.

Spectators 100 yards away needed to shield themselves from the heat,
the howl of the flames reminiscent of a jet fighter's takeoff roar.

"For right now we're going to clear the debris around the well," Tuppen
said during a break in the dawn-to-dusk operation. "Then we'll assess
again. Hopefully, it will be good news."

Tuppen said he suspects there isn't any major damage to the well pipe,
known as casing, that is cemented into the ground, or to the well head
itself.

After the debris is removed, the firefighters will try to douse the flames
with water and an explosive charge. Another well may need to be drilled
and linked to the existing well to relieve pressure.

"I've been saying a week on moving the rig off if we don't run into any
problems," Tuppen said.

The Boots & Coots crew working at Lost Hills has battled hundreds of oil
and gas well fires and spent months extinguishing well blazes in Kuwait
after the Persian Gulf War ended. Tuppen said this fire is more
complicated than the Kuwaiti infernos, mainly because of the preliminary
work needed to remove shattered equipment. It also is unusual because of
its location.

"You just don't see stuff like this in California," he said. "On a scale of
one to 10, this is a big one."

No one was injured when the crew of the contracted Nabors Drilling USA
rig lost control of the exploratory wildcat well at 8:30 p.m. Monday.
Seventeen people were at the site when the well blew, but all escaped
before the rig was engulfed in flames and collapsed.

On Monday, the drilling rig's crew had experienced a "gas kick," an
uncontrolled flow of natural gas into a well bore, and was working to
clear the gas from the well casing when the accident happened, said Hal
Bopp, district deputy for the state Division of Oil, Gas and Geothermal
Resources.

The crew realized the well was out of control minutes before it exploded
and cleared the area.

"Due to their professionalism nobody was hurt," Bopp said. "They deserve
a lot of credit."

The well is operated by Bellevue Resources Inc., a subsidiary of the small
Canadian independent oil and gas company Elk Point Resources Inc., on
land leased from Chevron. Seven other Canadian firms and one U.S.
company also own a share of the well.

Bellevue's president, Aidan Walsh, would not confirm what caused the
crew to lose control of the well, saying it was too soon to determine and
that his company's focus was on controlling the fire and capping the well.

"I'm just very thankful no one was injured. That's the first question I
asked," Walsh said. "It's an appropriate Thanksgiving."

Walsh may be thankful for more than the safety of the workers.

Although there is no estimate on the amount of natural gas erupting from
the well, it is enormous. The rig had been on site since May, and had
drilled 17,640 feet, almost 31Ú2 miles deep.

The blowout is providing clear evidence of a gas discovery, and if proven
to be commercial, it would be the deepest in the state and likely the
most significant gas field in Kern County.

The deepest producing well in California at Rio Viejo field near Old River
and Copus roads southwest of Bakersfield, bottoms out around 14,500
feet.

Although other oil fields in Kern also produce gas, only Occidental
Petroleum's Elk Hills field produces large quantities, Bopp said. Kern also
doesn't have any significant production from very deep wells.

The Bellevue well is about 11Ú2 miles from the nearest proven oil field,
Lost Hills. But that field holds mainly oil, and at depths averaging only
4,500 feet, more than two miles shallower than the depth of the burning
well.

"Its definitely positive that there are hydrocarbons," Walsh said.
"Certainly it could have significant potential."