RE: New Division In GNZ Formed!!!!!Yup---'gas sniffers' I use go into 'hi alarm' @ 15ppm.
1000 ppm can kill you in one breath, I consider 100 ppm toxic.
But these guys have got somebody convinced it smells like fresh apple pie and they are willing to pay a premium for it.
And altho Alberta royalties can run as hi as 25%, due to the huge quantities of 40 api erl this mini exxon is producing, they can sell it at premium to world trade index. Must be nice to have that kinda clout.
And the gas---typically, you gottaa boost it to 1000psi or so to get it into main line. This is after dewatering and sweetening. And it ain't your main line. You're at somebody's mercy and it's liable to cost you a buck a M.
The water---you got a disposal well? No? Huh. It's gotta be cleaned up and treated, then injected. Once you get it to disposal site. Got yerself a pipeline haided thet way? No? Putting wheels under stuff makes me money. None of the above is free.
Say---30 boe @ 80$ 'netback'---what's that figger out to in cf per share when you got close to 200,000,000 o/s fd?
Folks--for those of you who are not famiiar with H2S:
It's colorless, heavier than air, flows downhill.
It smells like rotten aigs, is also called 'sewer gas'
In higher levels, first thing it'll destroy is yer sense of smell.
Then is works on your eyes.
Then---it kills you.
It's NASTY stuff.
If you're out in the patch, shooting gophers and pickin daiseys and you see a well head sticking up---mind yer own business. If you gotta go look, do it from upwind. I pulled into a site n of brooks, they'd just made a boomer of a gas well, moved off and cleaned up the site. I walked over to look in the 'cellar', a little water was still there and it was bubbling----gas will migrate sideways in that country, some had from an old well and was following up the outside of surface pipe---I walked back to truck (which was parked upwind, i been around the patch a day or two) got my sniffer and tested it. Wasn't sour--but coulda been.
I find it purty darned odd that this co chooses to disseminate thier pr/nr's thru bullboards.
And very strange supposedly 'private investors' who do the disseminating are so ignorant.
And wonder if whoever is giving them the 'scoop' is also that unknowledgeable?