To all!!This is where I am now!! Major Colombian Acquisition today beside Seven Seas!!!
CAN WEST EXPLORATION INC.
#440 - 800 West Pender Street
Vancouver, BC
V6C 2V6
NEWS RELEASE
September 17, 1997 Trading Symbol: CWI
The Company is pleased to announce that it has entered into two separate agreements to acquire a 100% interest in the Lagunillas Contract Area in Colombia, from the operator, Casa Inglesa, and a working interest partner, Inversiones Tripticas. The concession, which is approximately 201,500 acre in size, is located in central Colombia in the prolific Middle Magdelena Valley basin and is adjacent to the sizable Emerald Lake Discovery recently announced by Seven Seas Petroleum. The Middle Magdalena Valley Basin is the oldest producing region in Colombia and has produced over 3 billion barrels of oil since 1918. Included with the acquisition is a 550 km seismic database and three wells which delineate an oil pool independently estimated to contain recoverable oil reserves of 7 million barrels. The contract area is adjacent to 2 producing oilfields, which demonstrate the same trapping styles: The 'Totare' Field with 9 million barrels of recoverable reserves; and the 'Toqui-Toqui' Field with 24 million barrels of recoverable reserves. Similar trapping mechanisms in Tertiary sediments are also found in the 'Cocorna' Field to the north of this concession.
From the existing seismic and well database, the Company has identified four untested structures on trend with producing oilfields in the area. Sandstone reservoirs of Tertiary and Cretaceous age have been proven to contain significant oil reserves in similar structures. The contract with Ecopetrol, the Colombian State Petroleum Agency, requires the Company to drill three wells prior to December 19, 1997. The Company intends to apply for an extension of the drilling commitment to allow for a rigorous interpretation of the extensive seismic database that has been acquired with the concession. The Company also plans to production test exisiting wells on the property and increase production through further drilling and facility enhancement. Oil gathering infrastructure are within close proximity to the property.
The Company is planning to additionally test a significant structure on the east edge of the block in early 1998. The well will test the same Cimarrona zone discovered by Seven Seas and announced as a "highly productive, large oil reservoir". An independent petroleum engineer has estimated reserve potential of the structure at greater than 600 million barrels of medium grade oil.
The total cost for the acquisition is $300,000 US and 570,000 common shares of the company. The Company must also replace a surety bond of $275,000 US with Ecopetrol. As part of the agreement, Inversiones Tripticas, shall be granted a right to participate in 6% of the first three shallow wells, 4% in all subsequent shallow wells and 2% in all wells greater than 8000 feet iin depth.
The Company has subsequently entered into a separate agreement with Afrasia Mineral Fields Inc. to farm-out a 25% working interest in the Lagunillas Contract Area for a cash payment of $500,000 US and certain drilling commitments. The Company will be opening an office in Colombia and is currently in the process of selecting an agent to represent the Company in Columbia.
A finder's fee of 100,000 common shares of Can West is payable to Michael Davidson of Houston, Texas relating to the Inversiones Tripticas agreement.
Formal documentation is to be executed among the parties and the agreements will all be subject to the approval of the Vancouver Stock Exchange.
Signed
Chris Wright
Director
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Call 604 682 1668 for further info
David |
