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Harken Energy Corporation (HEC) Message Board

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  • dhrosier dhrosier Apr 9, 1998 2:21 PM Flag


    It is worth reading for all interested in Harken and/or the Alcaravan project.

    I called Paul with some questions. He was very forthcoming. 1st, only the lower part of the Ubaque was tested, that is the results he cited are in addition to the Mirador, Gacheta and (as I understood Paul's comments) the portion of the Ubaque reported in the January 21st news release. This is lagniappe.

    His comment about 3,000 B/D being half oil is to the effect that it is also half water. This testing is very preliminary.
    Still to be determined is whether this is a bubble of oil sitting on top of water or if this structure will produce significant
    oil. The reference that "... two more sands must be tested ..." refers to the fact that the Mirador and Gacheta have not been
    tested yet. {I still have a small confusion because I did not think to resolve the contradiction between TWO more sands and his
    statement that this area of the Ubaque discussed in this report is below that previously reported.} Based on his comments this morning
    I am guessing that all of the structures reported January 21st have yet to be tested.

    Also remaining at Estero 3 is the cross testing with Estero 1. Recall that the combined testing to determine changes in underground pressures etc. is very important to discern the area of the underground reserves.

    Paul cautioned that the testing reported is very preliminary. He was receiving so many requests for information, with a rising level of frustration, that he felt he had to provide some progress report. {My interpretation of a number of his comments. I do not have a perfect memory.}

    The second point in his release is a real teaser.
    "The next well at Cambulos determines value beyond current target of $12."

    The $12 figure is based on the holes poked and testing to date. If Cambulos comes in as expected he will reset the target higher. Again there were a lot of thoughts about the potential size of that prospect. There is some speculation of a Billion barrels which could move the target to the range of $20 to $22 (I am really uncertain as to my memory of his exact comments here so treat this a pure speculation.)

    The more I think about the possibility of a hostile takeover the more concerned I am that us little guys could get kicked out far short of the goal line, or diluted by having our shares swapped for those of some large company where the new reserves would be a blip on the total asset base. I think I like the anti takeover in this case.