OTCPK:OTTEF - Post by User
Comment by
Malpequeon Sep 05, 2002 4:02pm
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Post# 5411728
RE: KBC/OEL/CCX/Kinetics
RE: KBC/OEL/CCX/KineticsI will be the Devils Advocate so to speak on the 7 wells. CCX in NS and RAL in PEI.
First I do not beleive for a moment that CCX has the punch to drill two wells in NS soon, I would like to see it but its a long stretch in my mind in this market. I would like to be able to say money enough for perhaps one. On PEI Rally is talking about 5 wells and I feel they will be hard pressed to get 3 done with the money they have set aside. Two million a well and that is cheap for there is 10,000,000 and I do not see that cash for that. Perhaps six million bucks total 4.5 from RAL and the rest from partners. That would get three shallow ones of four if everthing goes perfect.
The reasons are;
1. The high costs for rigs.
2. Anything that goes wrong while drilling and I it always does, costs about four times the cost of an out west problem bill.
3. Have to pay up front and no credit for the juniors.
On the good side RAL is not drilling deep so that should help as gas targets on that end of the Island are not a great depth like on the eastern end. Less depth less problems less cost.
Also three or five on PEI it all helps to put the picture together hit or miss.