Commission asks BLM to fast-track Fram’s Whitewater project proposal

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I hope that there are some conditions placed on this fast track. Fram’s proposal is very close to the source of Grand Junction’s drinking water. Any spill has the potential to pollute the very water that the city drinks, and Fram has little or no ability to pay for any clean up. Their most recent on-line financial statement, issued a year ago, has a note to the financial statements that questions the ability of this Norwegian company to continue as a going concern. That kind of note to the financial statement scares off most investors, and is extremely rare in the world of auditing. Our County Commissioners are putting our drinking water at risk for the sake of a Norwegian company with no skin in the game—they are depending on other people’s money (investors) to do anything. Do our commissioners honestly think that generating profits for a failing oil and gas company is in their job description? You can see the financial statement here (Page 53 has the going concern note.) http://www.framexploration.no/assets/files/financial/Fram_Annual_Report_2012.pdf To be fair, they announced just this month an agreement ($40 million) that will get them two drilling rigs and support for their US operations. That statement includes this info: “In Whitewater, Colorado, two near horizontal wells were drilled in 2013. Both wells encountered significant amounts of sand, confirming the modeled meandering channel systems. Logs and swabbing documented presence of oil. To date it has not been possible to get the oil to flow. A detailed review of the drilling and completion method indicates that use of water based mud and heavy overpressure in drilling is the probable cause of the lack of flowing oil. A revised drilling and completion plan has been designed for future wells in the area.” That doesn’t give me much confidence in the ability of this company to develop the field because they don’t understand the technology needed and do not have the financial prowess to buy better technology.

Sorry, I meant to include the link to the announcement of new capital for Fram, but hit send before I did so. Here it is: http://www.framexploration.no/fram-exploration-raises-usd-41.4-million-in-new-equity

More temporary jobs.  When are the Commissioners going to understand that “fast-buck” energy jobs are not real economic development.  How many boom-and-bust cycles will it take?



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