RE:RE:Oil Acreage - details on Larry's assessment of $2.17/shareLarry,
I don't know how much gas we have, but I think a lot of gas above the deep VM shale.
But I think that exploring and producing gas is a non-starter for us, BECAUSE we have so much potential for oil. We don't have a lot of money, so we are not interested in putting money into gas exploration.
As you know, gas doesn't pay as well, and the biggest problem would be getting the gas to market. For oil, you can put oil in a tanker truck and haul it to market. On the other hand, gas has to be processed in a processing plant, and then be piped into a gas pipeline and piped to market. I doubt thereis a local processing plant, or a local gas pipeline, and I also doubt there is much of a local gas market. I know they are piping gas from gas fields in the very south of Argentina to Buenos Aires, one company is RPT that has a gas processing plant and pipelines to BA. RPT is still an interesting story.
The gas in needed in the big cities to run automobiles and heaters, and not out in the country. They are having to import LNG now, and want the gas, so if the gas could be taken to market it would be valuable.
So the alternative to taking the gas to market, is to get the market to come to the gas fields. I've seen this concept elsewhere - e.g., BPZ in Peru). You make a deal with a big company like Dupont or a fertilzier company to setup up a local facility wanting to take advantage of cheap gas.
Another possibility is to bring in an electrical generator that runs on gas and make electricity and then run electrical wires to the consumers, a lot cheaper than a gas pipeline; i.e., gas needs an infrastructure of processing plants, pipelines, etc.
All this can be economical, but takes money. We want to spend our money on oil exploration and oil production.
However, due to the long lead time for gas, and our shortage of cash, I would think we might be willing to sell off the gas rights to another company, and generate cash for oil production.