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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 (2130)	4/4/1999 7:54:00 PM
From: grayhairs	Read Replies (2) \| Respond to of 15703

Happy Easter, Bob. Mrs. grayhairs and I have done a little "Easter travelling" but other than that I'm just patiently waiting, lurking, and contemplating a possible holiday\business trip to Portugal. :-) :-) :-) <<The kill Monday will be step one. The real Monday that will count will be the first successful completion in the Temblor.>> Perhaps, but that is certainly debatable. Many (I for one) are concerned only about the risk of killing this beast and the ongoing environmental risk if the well is not killed. Although this is a minor risk, IMHO, it is nonetheless keeping some big $ out of this play. [Not that my investment is in the category of big $, but I will certainly be increasing my own investment in KOB upon ELK's confirmation of a successful kill.] I am of the opinion that there is little project risk remaining once the #1 well is killed. Seismic data has defined a very large structure and the blowout has proven a number of things -- The ELH Temblor structure is sealed. It has reservoir quality sands. The sands contain hydrocarbons. The sands are capable of producing at commercial rates. The reserve is huge. While a development well will of course be necessary to physically enable long term production, the cat is already out of the bag !! Development wells will be necessary to refine the reserve size (i.e. Does the pool contain 4 TCF or 16 TCF ??). But, we do not need more wells to tell us that KOB is grossly undervalued at current levels if the long term risk of environmental damage can be eliminated. Hence, I personally anticipate a run upon news of a successful kill. JMHO, BWDIK ?? Later, grayhairs P.S.--I believe you recently quoted an in the ground value for this gas of either $CAN 0.50 or $0.75/mcf (In a "senior moment", I forget which!!!). FWIW, I believe that those values are much too low. California gas markets are one of two premium priced market centres in the USA. IMHOO, this gas is conservatively worth $CAN 1.00/mcf in the ground.