Replies to post #652 on Quest Oil Corp. (QOIL)

[paladin8]

Oct.29: CNS, Amguri field, assumed reservoir characteristics - - -

Umpolung, you are right, 'the top of the drilled "structure" would bear the greatest volume of gas'.

I would have to make some assumptions, as an investor, if I do not have all the Amguri field reservoir data.

ASSUMPTIONS

ASSUMPTION 1: This is a water drive OIL reservoir, with ASSOCIATED gas reservoir.

(a) Gas on top
(b) Oil in the middle
(c) water at the bottom

The most important things geologists will try to find out where are the GAS-OIL-CONTACT, and OIL-WATER-CONTACT, that means the depth where the gas zone ends, and begin of the oil zone, and the end of the oil zone and the begin of the water zone. - - - This can be done by studying the seismic data, and well logs on well that has been drilled, and correlate the results with data from other wells in the same field, and drawing a CROSS-SECTIONAL MAP.

ASSUMPTION 2: Oil is the primary target.

Oil is what we are after, not gas. In the case of Amguri 5 OIL well (in the Oct.28 PR, please note the words, 'oil well', it is classified as an oil well, so OIL is the primary target).

If the current flow rates can be sustained, this well will generate=(Oil) + (associated gas) = ($62.97 (average price for Oct. 2005) x 588 barrels)+ ($10 x 1,000 x 0.8)=$37,026 (oil) + $8,000 (associated gas)=$45,000 per day - - - $1.35 million per month - - - and $16.20 million per year.

The term, 'associate gas' is used to describe the gas that has been produced ASSOCIATED with oil production.

ASSUMPTION 3: Gas reservoir for pressure maintenance

Normally, if it is an oil reservoir, you want to keep the gas in the reservoir to help maintaining pressure in pushing the oil up to the surface.

You could have come acrossed the term, 'GOR' which stands for Gas Oil Ratio. If GOR has gone up to a certain level, that means you are producing too much associated gas from an oil well, eventually the reservoir pressure will decline, hence lower volume of oil can be ultimately recovered.

When GOR for an oil well is too high, the Canadian regulatory authority will impose a penalty (fine)on the operator. Once GOR for an oil well has reached a certain limit, the well will have to be shut in. - - - I expect in India, they will do the same.

Best wishes to all of you!

[paladin8]

Oct.29: Umpolung, CNS, my Oct.04 prediction was correct - - -

Darryl, in my Oct.04 posting here, I mentioned that, 'I expect by the end of this month or sooner, the prices will rise back up to the C$1 range.'

On Oct.28 it did, CNS traded as high as C$1.05, and closed at C$0.95 (+0.40 or +72.73%) 2.33 million shares were traded.

The following was my Oct.04 posting.

http://www.investorshub.com/boards/read_msg.asp?message_id=7988631

CNS.V 52-week low=C$0.40, 52-week high=C$4.98. Yahoo Finance lists its 1st year target estimate =C$5.00 (U.S.$1=C$1.20, approximately).

http://finance.yahoo.com/q?s=CNS.V&d=t

Best wishes to all of you!

david