OPERATIONS UPDATE
Zeus Energy Corp (ZUS.VSE) and U.S. Oil & Gas Inc. (USO.VSE)
March 6, 1997
The following is a list, not in prioritized order, of current projects and prospects Oak Hills Energy is presently examining or implementing. To reiterate a little background information, Oak Hills Energy Inc., is the operating company owned by Zeus Energy Corp., and U.S. Oil & Gas as to 40% each. As you can tell by the following operations update, Doug Humphreys, President of Operations, is working very hard to increase shareholder value for both companies. Some people are under the assumption that the next drill project on the South Wynnewood property is the only project Zeus and U.S. Oil & Gas are waiting for. We hope this update better defines the two companies 3-tier corporate strategy of EXPLORATION, DEVELOPMENT, and ACQUISITIONS.
OPERATIONS UPDATE:
1) South Wynnewood Prospect - currently waiting for drill rig and expect to have one early next week to move onto the property.
2) South Tribbey Prospect - currently working with the Oklahoma Corporation
Commission on the pooling agreement leasing the surrounding land.
3) "X" Valley Prospect - The project is closing right now and the name will be given once the land is fully leased. There is plenty of subsurface geology associated with the property and it would not be classified as a wildcat drilling project, but as a lower risk exploration project, according to Doug Humphreys, President of Oak Hills.
4) Oklahoma City Prospect - Oak Hills has signed a deal for an offset well with control (information on geology). Project is more of a channel sand (winding reservoir). This deal has just been completed and the first well must be drilled within 12 months. This deal was negotiated with a 12 month window in order to allow the companies to address
current projects.
5) "On the Board" - the company has a "strong" offset project "on the table" which if completed would probably be the #1 priority after the Wynnewood Prospect. No deal has been made on this property as of yet, but is expected to be finalized shortly.
CURRENT LEASEHOLD WORK
6) Katie Payne No.7 - Recent acid job and Polymer Job completed (this lowers the water content). Will put on production March 10 for evaluation.
7) A.E. Walker Lease - Engineering evaluation and re-work planning for putting wells into production. There is a pump tool stuck and the company hopes to dislodge this in order to start up production.
8) Balthrop No.1 - Re-work for perforating/fracing Calvin Sand. At a cost of $12,000 this would open up a well anticipated to produce 15 bbls a day (payback being 40 days).
9) Chase No.2 - Clean out and re-install tubing/packer for injection well.
10) Chase No.1 - Pull well and replace bad tubing and put on production.
11) Little River - Re-work Factor #2 or Brandy #1 to inject water into isolated Lower Gilcrease.
12) Vaughan No 24X-19- Currently conducting the final clean up of pits/location for Oklahoma Corporation Commission approval.
Please be advised that in addition to the above work schedule; there is always daily maintenance on existing producing leases as well as engineering and geological evaluation of potential future acquisitions of producing properties as well as AFE's and Oklahoma Corporation Commission work on new drilling prospects.
If you have any question regarding the above information, please contact Charles
Desjardins, Doug McFaul or Teg Gurniak at 800-831-2956 US or 800-370-4412 Cdn. We thank you for your past and future support.
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herein are based from sources believed to be reliable and in good faith but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. Tandem Capital Group Inc., its officers, directors and employees may have a position, long or short in the securities and/or markets referred to herein and from time-to-time may increase or decrease such positions. Any reference to past performance of any companies and/or investments
referred to herein are not indicative of their future performance. Corporations mentioned or featured in this report, may have paid compensation to Tandem Capital Group Inc. Additional information is available upon request. |
