[Rhodes22-list] Where's the oil.

[Bill Effros]

Wait! Wait!

I've got this bridge right next to my place in Brooklyn--goes straight 
to Manhattan--150,000 crossings a day--no tolls on it right now, but 
we're going to buy it, make people pay $5 to cross it, reduce the number 
of cars in Manhattan, and make a fortune--Do the Math!--It's a win-win! 
Can't miss! Opportunity.

Contact me back channel for where to send your check.

Bill Effros

Brad Haslett wrote:
> Rummy,
>
> Investing in individual new wells is not for the faint of heart.  I 
> bought a
> small piece of a gas well that was being drilled in south Texas two years
> ago.  They hit a very productive pay zone at around 11,000 feet, right 
> where
> the 3D seismic said it would be.  Then during completion, they perforated
> into the water zone and the whole $3 million well went kaput (including
> yours truly hard earned money). I still watch the mature Illinois Basin
> field for promising prospects.  Micro-drilling holds some promise of 
> cutting
> down well costs and there's still some hope for re-opening some 
> previously
> capped wells IF the price of oil stays high.  There was a provision in 
> the
> Energy Dept. bill passed two years ago to subsidize marginal wells 
> starting
> around $18 per barrel to slow down the capping rate when the cost of
> electricity for lift exceeds the value of the oil.  No one really 
> believes
> we'll see oil that cheap anytime soon so the provision is 
> meaningless.  What
> would really help in the Illinois Basin and other mature fields is if
> electricity was cheaper.  The cost of 3D seismic keeps falling but it is
> still over $30,000 per acre.  You better be confident there's a 
> prolific pay
> zone before you call the seismic team.
>
> Nukes anyone?  Hello?
>
> Brad
>
> On 2/14/07, R22RumRunner at aol.com <R22RumRunner at aol.com> wrote:
>>
>> I have a friend in Houston, TX who is an investment banker. He  
>> mentioned
>> a
>> project he was working on for purchasing 55 square miles of land in  
>> Texas
>> for
>> oil drilling. I told him that I thought all the oil was gone from  Texas
>> and
>> this is his reply.
>>
>>
>> I might have thought the same thing.  I have a good  friend, a PHD
>> Geophysicist and former professor of geology at the  University of Utah,
>> who thinks that
>> the oil and gas yet to be discovered is  equal to what has so far been
>> found.
>> He bases his conclusion on what he  describes as the reality of geology
>> vs.
>> what geologists "thought" about  geology.  He says that based on the 
>> data
>> and
>> information  available 25 years ago anyone might conclude that the 
>> product
>> yet
>> to  be discovered was declining.  The reality is that there is a huge
>> contrast  between the information available now about the subsurface vs.
>> the
>> thinking before the advent of the technologies we now use in the search
>> for oil  and
>> gas.  The new technologies show that what was thought to be true, is  
>> not.
>>
>> Most of the geophysicists I know say the same thing.
>>
>> I might add that what I do is move the  risks of investment in the 
>> sector
>> to
>> the energy company - investors do not  participate; unless they 
>> choose to
>> do
>> so by investing in a completely  separate investment.  The goal is to
>> invest
>> and get capital back in a short  period of time - low  risk
>>
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