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

To: Bearcatbob who wrote (353)	12/4/1998 10:37:00 PM
From: Rocket Red	Respond to of 15703

Bob It will take time no doubt about it but how many wells can they get of this.

To: Bearcatbob who wrote (353)	12/4/1998 11:18:00 PM
From: Salt'n'Peppa	Read Replies (3) \| Respond to of 15703

Bob, You are close on your calculations - I think gas sells for around $2.20/mcf. You are unfortunately also missing the point here. It is entirely possible that the existing gas pipeline can handle 100mmcf/day from our well, and that our well could be produced at that rate. We don't know the answers to these questions yet. Don't fall into the trap of taking certain numbers as "written in stone". The $20,000/day gross revenue you mentioned would be the absolute mimimum number. It should be considerably higher. Gas prices also tend to be a lot less volatile than oil prices. We aren't going to get rich on one well. It will take several wells to really get this project going. Right now, people are buying into the potential, not the immediate. Regards, Rick.