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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 (503)	12/6/1998 9:01:00 PM
From: Jimsy	Read Replies (2) \| Respond to of 15703

Rick - thxs for your geol101. Now to continue. What volume of rock would we be surmizing to contain the amount of gas that has already blown? Do we know the rough dimensions of the formation below from the 3D seismic or is this closely held info at this point. What is the progress on capping this thing, target date?

To: Salt'n'Peppa who wrote (503)	12/7/1998 12:18:00 AM
From: Check	Read Replies (2) \| Respond to of 15703

Rick, Thanks for the Geology 101. In my days it was Geo 100 and....I could have used you then. ALL Back to trivia: John Wayne in Hellfighters (1968 - I knew that, worked as an usher in a local theatre and was flunking geology even back then) had a daughter. Question: Is Katherine Ross the boss at Boots & Coots? How come she ain't down there or has she lost her looks? Back to business: I may be a confused person when it comes to faded beauties and geology but I'm still in a pretty good shape when it comes to controlling my abacus. Now pay attention Chad (#507), there will be questions later. The traditional rule of thumb is that 1 barrel of oil = 10,000 cubic feet of gas (10 MCF). Hence 1,000,000 cubic feet of gas (1 MMCF) = 100 barrels of oil equivalent (100 BOE). So far so good. Confusion arises when prices deviate from this simple rule of thumb ratio. In the last Bakersfield article for example, 100 MMCF of gas was mentioned ( hell of a flare) and 1000 barrels of condensate, equivalent to 18,000 barrels of oil or $200,000 per day. This reflects the current pricing of the commodities in question. The point is this: a)the most conservative estimate I've seen so far is 3 TCF (trillion cubic feet) (CIBC Wood Gundy) = 300 MMBOE b) the price of natural gas is much higher than oil with many people using a 6 MCF:1BOE ratio to reflect this reality C) the original guesstimate for the structure potential was 1.2 billion BOE so, on the price differential alone, you could add 2/3 to that for a total of 2 Billion BOE d) AS Rick just ably explained to us (# 503 - well about 3 hours ago, I'm just a slow typist)), gas is also much more compressible and the recovery rates are much, much greater. Conclusion: The lowest estimate hazarded by an analyst so far is 3 TCF or about 500 million BOE. At $ 4 per barrel, that's $ 2 billion. (You pick the currency, you pick the stock. The math is pretty simple from there on.) Night, night and let's hope the Hellfighters can do the job

To: Salt'n'Peppa who wrote (503)	12/7/1998 2:59:00 AM
From: grayhairs	Respond to of 15703

Hi Rick, Re: "The pressures we saw downhole were far greater than calculated and expected - obviously, as the rig burned down!!!" Rick, please explain what pressures were observed and how they may have been observed ? I am trying to assess the probability of a relief well being required and this information would be most helpful to me. The mere fact that the well blew and the rig burned down does not establish nor confirm that abnormally high reservoir pressure existed in the Temblor formation !! [Many rigs have "burned down" when downhole pressures were equal to or even less than those which were anticipated.] Thanks in advance, grayhairs