FIELD ACTIVITIES / Danoil Expects Significant Improvement in Third Quarter
TSE, ASE SYMBOL: DAN
OCTOBER 14, 1998
CALGARY, ALBERTA--Danoil Energy Ltd. announces that on July 15,
1998, it began to reactivate previously shut in production
eventually increasing production by more than 500 barrels of oil
per day to current production levels of 2,300 barrels of oil per
day. In addition, increased volumes at Carson Creek and Judy Creek
have increased natural gas production to 11 million cubic feet per
day. Approximately 500 barrels per day of heavy oil remains
shut-in.
A combination of the reactivation and a narrowing of heavy oil
price differentials boosted cash flow for the month of July to
over $600,000 which exceeded cash flow for the entire second
quarter.
Exploration and development activities continue to be concentrated
on increasing natural gas production. Danoil recently drilled and
completed a 100 percent working interest well at Lloydminster. The
well tested at a stabilized rate in excess of 2 million cubic feet
per day. Danoil expects to have the well on stream by November
15, 1998. At Judy Creek, in addition to the two wells which were
placed on stream in September adding a net 1.2 mmcf/day, four
recent reentry candidates have yielded positive results with the
best well testing more than 1 million cubic feet per day (20
percent working interest). Well tie-ins and the drilling of at
least five additional wells (75-100 percent working interests)
will continue into the second quarter of 1999.
To date, the non-core property disposition program has resulted in
the sale of four properties with total proceeds of $855,000.
Offers have been received on an additional six properties for
proceeds totaling more than $3 million. Danoil expects to reach
its target of $5 million in sales prior to year-end. |
