FIELD ACTIVITIES / Pacalta Resources Ltd. Significant 1998 Events
Pacalta Resources Ltd. is pleased to announce two significant events which
highlight the success of our efforts in 1998.
Allowable Production
Pacalta Resources Ltd.'s 100% owned Ecuadorian subsidiary, City Investing
Company Limited, has received notice from the Ecuadorian National Hydrocarbons
Directorate that the allowables into the SOTE/OTA export pipeline system have
been re-apportioned. Pacalta has received a new production allowable of 44,825
barrels of oil per day (''BOPD'') effective 6:00 am January 28, 1999. The new
production allowable represents an increase of 75% from the previous allowable
of 25,672 BOPD. This increase is a result of increased productive capacity due
to recent drilling success and facility expansions, as well as declining
production from existing fields operated by PetroEcuador, the state oilcompany.
Reserve Report
The Company has received the December 31, 1998 reserve report from its
independent engineers, Ryder Scott Company. This reserve report indicates that
the Company currently has 180.2 Mmbbls of proven reserves and 32.0 Mmbbls of
probable (gross, before royalties).
The Company recently completed its first two horizontal wells in Ecuador
(Fanny 18B-24H and Fanny 18B-22H). Initial tests in the ''M-I'' sandstone
yielded rates of 14,000 BOPD and 7,400 BOPD, respectively.
Pacalta is currently reviewing the capital budget for 1999. The current
capital expenditure outlook of approximately $35 million includes exploration
and development activity and facility construction on City Block and Block 27. |
