============================: THU.JAN,980115 :============================
Foreland : Tom : 8 streight sucessful wells
: 3D siesmic in North Centeral NV . complex volcanic & carbonate .
Foreland since `85 | `93 acq | slideBlock w saddle GhostRanch
7 sq mi 3D shoot . Sheet passed carbonate . Hi pressure air N2 & CO2 - CO2
disolves in oil & makes lighter .
45 M B already produced in NV over 40 yrs .
Plan 7 devel wells in Egael Spring
expect 1800 b%D w 1 $ % B devel cost .
plan to | 4 more areas being looked @ w JVs .
Used to be just exploration .
seek 50 to 100 M B fields . | Exploration drill bit .
acq $5M . 1.5 B % share reserves . | .5 M$ drilling costs .vs 10M$ offshore
45M 700 wells | sucess 1 % 50 in old drilling - because seismic didnt work
. reworked | think now 1 % 10 - 15 | .5 | 1 exploratory well sucessful |
just did largest ( 17 sq mi ) area for 600K$ |
shooting ajacent 40 sq mi | have cashflow , reserf
Rev ? 97 2.25 , 98 3.5 M | earnings - need to look @ cashflow . 99 10M$ -
into drilling | cash flow | 1$%share cash flow &
built in reserve growth wo any new finds . | 20 mkt mkrs . vol 80k % D .
> 5000 shareholders . ESOP ? y . mng owns < .15 . inst : .1 |
Dr Grant Steele ex Gulf , founder . Total 14 employees . mostly geo
DavidGreen resercher .
all same people still there | .5 - 1M $ trading vol % day .
New exploritory drilling - no trades . no shorting while drilling .
52 wk range 2+5%8 Hi 7+3%4 |
GrantCanyon . 5 refinerys in Salt Lake . Emerald Resources : black wax
Grade 22-28 heavy @ eagle Springs - low sulfer . for asphalt .
acqd 6500 B%D Petrosource refinery , known people since start . no
environmental problems . 40 yr field | expense all exploration . |
16.9M$ debt fin 12% w prepayment | Shareholder eq - ~ 7M . we 0 credit for
50M$ worth seizmic . Analysts : ChuckStrain , PeterMetz .
| cheap debt & equity offers .
|12:53| John : 5th /Strain conf started w ChuckPaulson . Chuck & son Michael
Strain . Ridel CPO BCI light attend this mng . Harken well attended
Chuck : Evergreen went 2 to 50 .
EVO Gullander : JohnMasters : `97 on panal of Petroleum Legends :
Found 20TrilCuFt gas in Canada : Deep basin gas under oil under water
Obviously bright intense . been @ Waldorf 52 yrs ago up frm NewHaven .
Give numbers or dates but not both .
Incredable variety of projects going on now . He not know abt . Only knows
US & CAnada . Has 27 slides explaing . not w him l
Razz-ma-taz : Demand w increase . Natural gas cleanest . non hydrocarbon
just waste of public time . Found Ambrosia Lake NM Uranium . 100 yrs worth
of Methane . Don`t expect cost of gas to go up more than inflation in our
lifetime . long future Hydrogen .
Best options : Independents Onshore , NA , Gas | Protected by big oceans &
expensive LNG tankers . MX wants to keep own gas .
Alaska too far to be used soon .
Bro was head of US Geo Petroleum analysis .
Future gas %3 from Gulf . 100M$ leases in deep water . Majors - like
savings acnt . 2%3 w b on shore | Majors have eliminated on-shore staffs .
can`t build back | Larger Independents have cap & tek needed . Yrs ago :
Dean McGee : counted milionares in Houston vs Wichita . moved to gulf .
Resource triangle : small amnt of higrade developed 1st .
Tru for every economic resoure distributed this way .
As tek improve can dig deeper
First used to explain Elmworth deep basin giant reserves Anticlines :
running hi & looking good . Capillyar traps @ botom of Alberta syncline
120 mi long 100M$ for 1M acres . in face of 85 dry holes .
Big new field virtually invisable - require guts & money .
( Big play @ Jona still mistery )
Majors just finding Anticlines w siesmic .
250TCF = $500B left to be discovered in on-shore large fields in new trap
types ( no more anticlines : Coal methane - deep basin tight sand traps .
Deep basin field . Favorable areas few percent of total basins .
Lewis Sands in Green River & Sand Wash where he works . Gil
predicts w b famous as one of largest new gas fields .
Alberta deep carbonates .
|13:36| ?S : low porosity capillary systems .
JohnW : most memorable Moment ? Bob Snyder , Shell Conglomenate cores ,
normal , expect channel conglomerate , sand is beach ( like Galvatson - 100
mi in each dir ) .
' John : not channel - is beach - change of grain size when going upward '
( Size of field of Quatar ? We`re not in that league . don`t think is
anticline . but too big to have good idea . )
Trap edge of tight sand sheet 40 - 80 M cu ft % day - burnd rig 18-4 down
|13:44| Charlie Maxwell greetings .
BPI 22k |14:19| Coal Methane in IL .06 of tot US Gas . Fractures & cleats in
coal beds . cu fto of coal can hold 300 x sand stone . no sulfer in gas .'
may contain N2 & CO2 . Conains > 1TCu Ft . 19 space wells . know 30- 40 ft
coal @ 1000 ft . 43K acre block . rich in overpresured gas . long lived - 8
18 mo to get online then decline .07 % yr . 1B MCF x 2$ | backed up by
Haliburton . looking @ 72 additional wells . 500 to be totally developed .
Operating ptnr : 2 pipelines & electric grid crossing property .
25M invest : Water is potable . Drill it , core it , Frak the coal .
hydrol . Methane adherd to the coal . Drilling ahead of mining in much of
world . make safer .
Methane has prority acording to `95 EPA laws . 43k acres :
Ptnr Fairfield IL : private Family : BobWheat - deal w PennCtrl .
Farm out agree : 8 wells by June `96 - had no money . Came to Vancouver
got tek expertise & money for .49 of co . 3D imaging & Xenon testing
Haliburton teknik to measure holding cap of coal .
Working on listing in Toronto , then US . around since `80 in different
forms . Also have .11 interest in med tek device - interocs infusion device
FDA approved . passive investment . 1M$ cash , 0 debt . planning to raise
12M$ . 72 wells into beds . 250 ft gas bearing shale .
Looks like may be > 3TCF in shale . Cost for well 163K$ + compressor
AFE 24 M $ for 72 wells | 24 % 72 |>| 0.33
Wheat now has deep pocket ptnr .
expect to have proven 1B$ worth of gas . | 250kcuft % d % well
Inverse production curve : Gas - coal , Water . get water out first - inject
back below shale > 5000 ft . Compressing ? 1.5M for gathering & compressing
Evergreen - first in Raton basin . Pipeline has to take production .
|15:23| Evergreen Res : MarkSexton : been here 3 yrs . Denver based E&P co
coal bed methane . 4 key drilling projects .9 Raton Basin , .1 3 intnl .
Operate ALL wells in reserve base . all prod from Vermoojo deep coals in
Raton Basin CO . .98 drilling sucess since `93 : successful appl of tek -
take to UK . last yr 60 new Raton Wells . Got new onshor Chile , offshore
Falklands | PED licenses UK |
All gas had to go out thru CIG sysme
Assets 39 89 | eq 32 62 71 Shr eq | Ref 3.4 13 21 thru cal 98 .
CashFlow .1 7.6 13.5 | Earing , now 7 | Reserves 63 224 300
, value 23 159 200 thru eo98 | producing wells .eo 94 97 98 : 9 83 140 |
mkt cap 31 160 eo 94 97 . Raton Basin 18Tcf |
Amoco using SanJuan teks not working . Acqd Raton frm Amoco .
Spanish Peaks fractured coal in basin | CO NM boarder
Preferential Rights dispute w Amoco - came in second . Raton basin was
restraind by pipeline | 40M % day for 15 yrs . get into mid am hub .
CIG index | looking @ producing 100M % day . did good job on hedging
contracts . 1.95 % Mcf | Low cost structure . Finid .18 LOE .3
G&S .2 % Mcf cotal .68 . > Rev - cost 1.26% MCF .
Were leader in REserve Replacement costs . | Return on tot rev .
.36 vs typ .1 |
Well cost $330k | Resers | Finding cost .18 % Mcf , payout 2.5 yrs . RoI
8.1 yrs . R. Basin now Self-finacing | 30 yr anuities
last %2 yr slowed by need for compressors for new wells .
400 Mcf % day asymtotic production .
Intnl Projects .1 of tot . Company Maker potention . Chile & Falklands
std Oil & Gas | Chili driy but natntl Aquafers . 2 5000sqKm blocks .
have .75 interest , Chile Gov has .25 | Look like . shales .04 carbon along
edge of basin . hoping for 100MB basins .
Falkland offshore like N Sea . w Amerada Hess .
UK logistical issues : 600k acres for coalbed methane w Brit tek which
was much inferior onshores . well took 6-7 wks instead of days .
50 different details in ways to drill & run wells .
wells pay out in less than 3 yrs & produce for 30 . 8 % 1 payout .
Raton 500BCF to 1 TCF . Onshore UK 1 TCF .
Falklands/Chile 35 - 50 B Barrels .
Converted prefered w JohnHancock .
Filed new underwriting . just pull because of weak mkt .
anti dilutive @ > 17$ net asset value .
Expanding Gas mkting capabilties .
Falklands 1st well spuds in apr . Chile seismic this su, .
|16:7| hi btu value hi water .02 impurities N2 & .
.04 air to wobbe requirment for CIG line .
water hi in bicarbonates .
|16:19| Sharpe : RolandLarsen : Pres : Geologist | Tom Light , both on & off
shore bkgrnd . Water flood
OTC BB : S 20F fileing in progress . Mkt cap 1.5 Cdn$ . was as hi 3 |
mkt cap 50M$Cdn . offices Houston , Shingle up in Toronto .
Roland comes from large co . mixture of projects : Hi unit value : US
gulf Coast , OK Anadarko Basin , & TS water flooding . Hi quality oil
.5 + own all projects . Look to lower risks : Miocene TX offshore tek risk
#D seismic . > 7000 ft depth . 50B target @ > 8000 ft in 48 ft water 2.5 mi
ff shore . Sell gas int PGE pipe . have 3 platforms . had to upgrade .
18 stack gas zones . some produce 2.5 - 3 Mcf % day .
want to maintain 10Mcf % day production .
West TX - Brown Cty . 1.00 interest . 3MB recoverable oil . prod could be
4.5M$ on 6.7M$ rev . Just spent 4 yrs pressuring . 10 well program to drill
used to produce 3000 B%Day . just . 8ft oil s . > 4 ohm .
PV10 value of 27M$ . 3000 B%D pumps .15 oil .
Anadarko 16KFt deep gas wells . Quilla low pressure pipe over site .
Deal w Conoco in NW CO . 30-50 MB oil , Niobrara oil .
cash flow % share . .48 to .78 | West TX looks more like 2000 BöD than est
1200 . Need 10M$ to reach all objectives . New drill wells : 1M$ each .
Anadarko wells cost 150-200K$ .
Breakup value : 5$ +
5M - 50 M cdn | 2 M to 40 M asset value | last yr .
Regular building of replacement wells . to issue equity would be enormous
dilution . Try sr debt wo warents - Dutch , Swiss .
Share price does not reflect cash flow . Arbitrage says borrow today .
now 1000B%D production need | 10 M from comercial bank | Proved , not proved
producing . .055 .06 + .0250 . if share were 6 , sell shares .
8 ft oil on 35 ft sand .
Have twin of West Thrifty . 8 M barrels water from next door Akeda . net
cost just pumping . set up to sweep every bit of oil . 4.5M B recoverable.
cost % B 2$ including production . Vert & horisontal permiablilties both
high . Have 10M credit facility frm Fst Union / CoreStates . LIBOR + 1 . 56k
debt on . Cap Mkt grp out fo Charlotte .
Harken wants to have 120M shares oue Bitech . Columbian .
Bitech very interesting Russia on pipeline . have some 2.5k B%D gushers .