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

To: Check who wrote (2132)	4/5/1999 1:12:00 AM
From: Salt'n'Peppa	Read Replies (1) \| Respond to of 15703

Check, In my opinion there were some serious errors in that DOB posting (reply 2109) that BearcatBob provided for us to read. The author, Shaun Polczer, got his facts totally muddled. Here are the facts as I understand them. Feel free to correct me if my memory of the presentation is not 100%. <<<He suggested the East Lost Hills structure is analogous to North Kettleman Dome and contains between 4.2-16.8 tcf of gas and 300 million to 1.2 billion BOE of light oil and NGL.>>> It is my understanding that the gas reserves mentioned equate to the oil reserves mentioned, in BOE. We should be reading that as either "TCF gas" or "barrels oil equivalent (BOE)", but not both. <<<The Bellevue No. 1 well tapped into a mapped structure roughly 14 miles long and four miles wide... >>> Nobody said that the structure was 14X4 miles. The numbers everyone else heard were 14X3 miles. <<<Partners in the joint venture include; Berkley Petroleum Ltd (46%); Paramount Resources Ltd. (25%); Westminster Resources Ltd. (nine per cent); Bellevue Resources, Inc. (five per cent), a subsidiary of Elk Point Resources Inc.; Hilton, which is merging with Stanford Oil and Gas Ltd., (seven per cent); Trimark Resources Ltd., affiliated with Hilton (four per cent); and North Arm Resource Inc. (four per cent).>>> The percentage working interest that he mentions are for the Armstrong lands, not for ELH, as are the 3 upcoming exploration wells. <<<Insurance coverage is still sufficient to pay for a redrill of the original well, he said.>>> Brad Colby, to the best of my recollection, mentioned nothing about insurance paying for a redrill. What I heard was that the insurance coverage will likely pay for "substantially all of the costs incurred in killing the blowout". I think that's how he put it. <<<Flahive said when it blew out on Nov. 23, 1998, Bellevue No. 1 produced 100 mmcf of gas per day from a 16-foot drilled section of Miocene-aged Temblor reservoir at over 15,000 psi of pressure.>>> As we all know, it was a 17 foot section, not a 16 foot one. A little pedantic, I admit, but worth a mention nonetheless. <<<Although rock samples and analysis of cores were destroyed in the fire... >>> No cores were cut in the Temblor during the drilling of Bellvue #1. Rock cuttings were collected and described, and may well have been destroyed in the fire, but you can bet that the data was not destroyed. Being intimately familiar with wellsite geology practices, I am certain that copies of rock descriptions would have been faxed to some office, somewhere, before the fire occurred and allegedly burned the originals. I also doubt that the geologist suffered total and permanent amnesia, following the accident. You can bet that the JV partners know exactly what they are dealing with in that 17 feet of rock. I wasn't going to address that DOB report at all, but it is clear that it is confusing a lot of people. I hope this helps. Sincerely, Rick.

To: Check who wrote (2132)	4/5/1999 1:13:00 AM
From: grayhairs	Respond to of 15703

Hi Check, <<Being conservative, I've been using Can $1.00/mcf all along and throwing in the condensate for free - for an extra conservative measure of protection.>> That agrees very well with the conclusions I've arrived at after talking to a couple large gas marketing companies that are active in California. <<Nevertheless, I am a bit puzzled by the reappearance of oil when anybody close to the action has mentioned nothing but condensate.>> I think we can forget about the oil, Check. With Temblor formation temperatures in the range of 329 to 355 degrees F there's not going to be a lot of "Temblor" oil production. Perhaps that "trace oil" being commented upon is not even from the Temblor !! Remember, the integrity of both the casing string and the mechanical seal at the top of the 7" liner are very suspect. JMHO BWDIK? Have a great week. Later, grayhairs