PROPERTY ACQUISITION / BriAlto
BRIALTO ENERGY CORPORATION AND EDEN EXPLORATION LTD.
CALGARY, July 2 /CNW/ - BriAlto Energy Corporation has purchased a 20%
working interest in 195 bopd, two capped gas wells which tested 4 mmcf/d each
and 8,640 gross acres of land in Virginia Hills, Alberta, from a major energy
company for $600,000 ($2.69/boe proved). The effective date of the
acquisition is June 1, 1998 and closing is in mid July. The properties have
proved reserves, net to BriAlto, of 138.9 mstb oil and 840 mmcf gas. BriAlto,
together with Progress Energy Ltd., its 80% partner, plan to drill at least
two development oil wells on these lands in 1998.
In addition to the acquisition, BriAlto together with Progress farmed in
on 13,760 gross acres of exploration lands in Virginia Hills from the same
company. BriAlto has committed to participate for a 20% interest in two wells
to be drilled on these lands prior to April 1999.
BriAlto is currently producing 250 bopd. The Company has $1.5 million in
cash with no debt and has allocated $3.25 million for investment in 1998.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
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For further information: Alan R. Tolg, President, BriAlto Energy
Corporation, (403) 216-2288, Fax: (403) 264-9299
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