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

To: grayhairs who wrote (1288)	1/14/1999 11:51:00 PM
From: Salt'n'Peppa	Read Replies (2) \| Respond to of 15703

FYI - Jan 14 press release from PYRX Here is an excerpt from PYR Energy's quarterly report. It looks like we will have the blow-out plugged by February 1st. ------------------------------------ East Lost Hills - The Company has identified and has undertaken technical analysis of a deep, large untested structure in the footwall of the Lost Hills thrust. This prospect lies directly east of and structurally below the existing Lost Hills field, which has produced in excess of 350 MMBoe from shallow pay zones in a large thrusted anticlinal feature. In early 1998, the Company entered into an exploration agreement with a number of established Canadian oil and gas companies to participate in the drilling of an initial exploratory well to fully evaluate the feature. PYR received cash consideration for a portion of its share of the acreage in this play and a carried 6.475% working interest through the tanks. PYR owns an additional 4.1% working interest for a total working interest of 10.575%. The Bellevue Resources et al #1-17 East Lost Hills well, located in SE1/4. Sec 17, T26S, R21E, Kern County, California, commenced drilling on May 15, 1998. The well is designed to test prospective Miocene sandstone reservoirs in the Temblor Formation. During September 1998, the well was sidetracked in an attempt to gain better structural position and delineate potential uphole pay. On November 23, 1998, the well was drilling at 17,600 feet toward a total depth of 19,000 feet when it blew out and ignited. No personal injuries resulted, and an expert well control team was engaged to contain the fire. Currently, the well is under control. Surface containment facilities consisting of separators and storage tanks have been installed and are collecting and separating hydrocarbons and water from the well. Natural gas is being flared while liquid hydrocarbons and water are being collected in the burn pits and in above ground storage tanks for trucking to processing and disposal facilities. A snubbing unit is being deployed to attempt a surface control kill of this well. A relief well, the Bellevue #1R commenced drilling on December 18, 1998 and it is expected that this relief well will intersect the wellbore of the Bellevue #1 sometime in late January of 1999, at which time the Bellevue #1 will be plugged. Should the operator be successful in using the snubbing unit to plug the Bellevue #1, the Bellevue #1R is expected to be drilled directly into the Temblor Formation as a replacement well. Although the Company believes that its insurance coverage is adequate to cover expenses associated with the blowout, there is no assurance that all of the costs will be covered. The Company and the other working interest owners jointly control approximately 23,000 gross acres of leasehold over the prospect.