FIELD ACTIVITIES / Q Energy Limited Announces $4 Million Natural Gas
Development Drilling Program At Burstall, Saskatchewan
CALGARY, ALBERTA--Q Energy announced today that it has entered
into a Joint Venture agreement with several third parties who have
committed to spend an aggregate of $4 million to fund the Phase
One of a development program on the Company's proven reserve lands
near Burstall, Saskatchewan.
Phase One comprises drilling and tying in 30 natural gas
development wells. Q Energy expects to begin drilling after
breakup, with production anticipated to begin by late summer.
Another party is evaluating its participation, which could result
in Phase One expanding to a total of up to 52 wells. Under the
terms of the agreement, Q Energy, as operator, will receive a
gross overriding royalty, processing and other related fees.
The agreement also allows for further development drilling of an
additional 200 wells on 50 sections of adjacent lands owned 100
percent by Q Energy. These adjacent lands have upside reserves
potential of approximately 30 BCF, of which 11 BCF have been
classified as proven by independent engineering consultants. It
is expected that much of the remaining potential upside will be
converted to proven undeveloped by Phase One drilling.
Q Energy also announces that it has locked in an average natural
gas price of $2.65/Mcf for the 1999 gas contract year for
approximately 70 percent of its existing gas production.
Q Energy is a Calgary-based exploration and development company
with a geographically diverse land portfolio, a balanced oil and
gas prospect inventory with considerable upside and an aggressive
development drilling program.
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