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

To: Salt'n'Peppa who wrote (345)	12/5/1998 4:41:00 PM
From: Michael M. Cubrilo	Read Replies (3) \| Respond to of 15703

Rick, be careful about your technical comments re: oil well spacing, gas well spacing, and "... by no means will anyone jeopardize a screamer gas well to drill deeper for a commodity that no-one wants right now. That would be insanity." Oilmasters comments are justified. I am not sure about the Oil and Gas regulations in California and how they govern the development of their resources. However, if this is a GAS CAP, then if the regulations are similar to Alberta's O&G industry, they may be REQUIRED to drill to the target zone and produce the oil in this reservoir FIRST, because of required Good Production Practice. By that, I mean, if the oil is driven out by the gas pressure, which is referred to as Gas Cap Drive, then it is most efficient to first produce all the oil and then apply for a "blow down" application where you then wish to produce the remaining gas reservoir or 'gas cap.' Unless, of course, this was a separate zone altogether different from the target oil zone. If it is part of the OIL ZONE, then they may have to prove that the gas is not associated with the oil and IF IT IS, they may have to produce the oil first. Do you know for a FACT, that the regulations in California are different? Because fundamental reservoir engineering characteristics are the same around the world, I would suspect that they require similar production practices as in Alberta. More reservoir/downhole details are required before we can make wild assumptions or guesses. If it is a separate gas zone, then more data is also required to determine the size of the reservoir. The well could be done in 6 months, or it could be a long term hummer. Need to know more. This observation was also made in one of the news articles on the 'bakersfield' site. Regards, Mike