Atikwa Resources Inc. V.ATK

Quite correct.

[GreatSwami]

I did sell out of Ryland before they got gobbled up - and looked foolish in the process. However I had looked at their huge land spread - I had looked at their well results, I had looked at the well results of all the "neighbours" from the Roncott area all the way down to Taylorton.

I had watched Cenovus pay nearly $50 million for their two land parcels to the north and east of the old Roncott pool - drill their wells based on strat test cored vertical wells and followed up with twin leg MSF horizontals - only to shelve the project due to horrendously disappointing results.

Knowing the area - I was left with thinking that the only value left in Ryland was the Royalties (and their share of rapidly declining production) they were getting off the existing wells - and perhaps their US N. Dakota acreage? There may have been some upside in some shallower Ratcliffe potential on some lands - but that was yet to be proven? As for most of all that land - having drilled some of it and proved it was almost worthless - what really was there left to hold on for? (Other than the buyout - and I really couldn't see them geting valued that highly. For Crescent Point maybe it was worth the
.48 cents they paid - if only to get rid of an annoyance?) I actually felt sure that Crescent Point would keep them dangling on a hook somewhat longer and get them much cheaper. So it goes! If you want to make money it seems it might be a good idea to bet against me where I have an opinion that is.

Atikwa is different - I have been negative to neutral for a long time - but I keep watching as it has some potential for a pop anytime it looks like there might be another land feeding frenzy and all it takes is for someone to come up with a huge well nearby. I have not yet felt the urge to jump in and grab any - but I have been looking closely this past month as things are drying up - crews are moving - wells looking like they may get completed when drilled so there is a chance for some action.

There is not a huge land position here - and so far - nothing is proven that a potential buyer can easily take to the bank. The fact that the Roncott Vertical well is still humming along at 40 bopd is rather astonishing - especially in the light of the unmitigated horizontal disastrophes drilled nearby that cannot manage a fraction of that.

I drilled wells offsetting the Pierson Spearfish play - have been involved with the Spearfish in many other areas through Saskatchewan, Manitoba and into N. Dakota - have seen innumerable cores, lithology/mud gas logs and samples from the various horizontal wells drilled in the formation. (I have not seen any of the newer MSF Horizontals though!). I have a pretty good idea what the "reservoir" actually looks like!

Like I have stated in a prior post - I have heard all the differeing theories about what kind of trap and resource might exist from the discrete pool theories to the broad band along strike subcrop stratigraphic pinch out ones - and have come to the conclusion that neither extreme is correct - the truth is a little of both. So will any particular land parcel be as good as any other? No evidently not - some land will be better - some worser - some new exciting "pools" (sweet spots) may be found - some real dead regions will no doubt be found too.

I have seen the Penn West (and other) cartoons and know they "stretch" the reality a bit. Truth is - at $100 + per bbl oil, the right Royalty concessions, the co-operation of Mother Nature and an efficiently drilled and completed MSF horizontal - much of what was known to exist before - but was way way too lean for vertical well completion - can now be "mined" economically in a big program basis. A few quarter sections is not a "Company Maker" but it may attract some attention from a nearby predator if it can be shown to centre over a "sweet spot" and not be one of those "leaner" parcels. If it is marginally economic - no one is going to get too excited - they simply drill around it and let fugacity work its magic.

It was nice to see the lift in SP today (no that was not my buying LOL!) - those of you hanging in here deserve it. (And more). Its an auspicious time - things are moving both on the ground and in SP. If someone is circling the drilling season is ahead and now or shortly would be a good time to move in.

The Porcupine Hills stuff still is intrigueing - maybe there is more there than meets the eye? I have seen some photos of the test flare there so I am quit aware of what they may have been flaring off. (I just have no idea how quickly it depleted on test? And there fore how truly exciting it may be?)

It is what it is - I find it very hard to believe if the local economy remains robust that they will ever be worth much less than
.06 cents - I really have no idea just how much more they might be able to fetch at auction if they can provide the "Right Stuff" in the data room?

But I am fascinated in the story and because it is one that I have blabbered about I watch with continuing interest.

GS

[stockmanners]

My apologies for mixing the two of you up GS and CR.Thanks,StockManners