MGM Energy Corp MGMCF

Hey OilEng a question for you or anyone

[farml1234]

I keep wondering why Husky bid so much for their land blocks in the NWT [ Canol shale field ]

# 1 they were just guessing their was oil their.

# 2 a little bird told them their was oil their

# 3 they somehow got their hands or researched a old well that was drilled through the shale and found a shale core and seen what it contained.

 

My guess # 3

[SigmaKappa]

Keep in mind Husky was a work committment. They havent physically spent the money. They jsut need to spend it over so many years to retain the license.

[farml1234]

SigmaKappa You are correct , but you missed the point ! Why did they bid so much they had to know something and my thinking they somehow found a old core or drilling samples from a old well

[SigmaKappa]

Of course they know of the potential resource. But it still stands that its little risk to them as its a work committment. They can spend for a couple years and if they want to walk away they can. Regardless companies like Husky have to spend on exploration work to feed potential future devlopment.

[farml1234]

SigmaKappa Energy companies do not spend 100s of million  of dollars just for the heck of it they want to find energy

[SigmaKappa]

I take it youve never worked in Exploration have you. Thats the nature of Exploration; your riskign capital for potential resource. Nothing is certain.