benmoff, page-2

Hello "K",
Still with you mate,, and for what it's worth,, i think that you have made the correct decision for the long run..!!

A lot of bullets wiz around your head before you win a war..!!

I'm more troubled by the lack of technical information in the announcements, than the SP,, and i'm taking steps to attempt to calrify a few things with the company..!!

Stuff like the following..:-
They pumped the well down to 16,030 ft,, and while drilling,, they estimated the potential productive zones to be between 14,500 ft and 14,900 ft and total 100 ft of interval..

Now ,, when they ran the logs,, they refined the target zone estimates and position to........75 ft of intersected interval,, over 4 sections ,,, and between 14,180 ft and 14760 ft..!!

A decision was then made to test 75 ft of total interval,, and do it over three tests..!!

So far there has been the first 15 ft,,and the next 41ft that had the stims.......and that makes a total of 56 ft tested over two tests..

On official announcements,,,, there has been NO change to this original plan right up to and including 30 th January..!!

The calculator says that there is still 19 ft remaining to be tested in the lower zones on a third test..!!

It's important to remember that,,, what we call the lower zone is at 14,180 to 14,760,,, and the first 15 ft tested was actually at 14,700 ft..

So when they pluged this off,, they were actually pluging off the bottom 1,330 ft of the well..!! probably a touch more,, allowing for the caved in casing section..!!

They told us where the 15 ft was,i.e. 14,700 ft....BUT did'nt tell us where the 41 ft section was..!!

The question i want answered is.....Was the 41 ft section,,, the second,, or the third..!!
If it was always the second,,, then we are in with a chance on the last 19 ft..
If it was always the third,, then it means we lost the first 15 ft to the caved casing,,, and we also lost the second 19 ft also..!!....And that means game over on the lower zones and we are down to Queen City only..!!


What some shareholders would prefer AZZ to do as a way forward, may not be quite as simple as a company freedom of choice..!!
As you know,, the " Operator" is NOT the drilling company,, but is their 50% partner,,,San Isidro Development Company,,, They are described as a private American oil and gas exploration and " production " company,,, and obviously have got a dollar..!!

Should a suggestion arise, that a way forward is to sidetrack,,, or even to drill a horrizontal into a target identified by the logs,,, at a cost of $ X million dollars,,,What do we want the company to do ???

Probably only two choices,,, either go for it,,, or pull out,, and sign over all future potential production to San Isidro, and let then go for it alone,,, because they probably would..!!

Also ,, how would this effect future prospects,,, because San Isidro" are also AZZ's 50% partner in " Yellow Rose",, and each partner has already invested $2.2 mil each into the 3D seismic on yellow rose..!!

An awful lot of shots to be fired yet mate,, so keep your head down,, and yes we have lost the battle,, but the war has'nt been deceided yet..!!

Cheers..!!