November 25, 1996
U.K. New Pool Discovery and Six Month Financial Results
CALGARY, Nov. 23 /CNW/ - The Waddington Prospect in the United Kingdom was spudded on November 2, 1996 and
reached a total depth of 1157 meters on November 20, 1996. Logging operations, gas detection equipment and drill cutting
sample analysis indicated the presence of an extremely porous oil bearing zone in the Carboniferous Limestone Formation. The
analysis of the drill-stem test over a 5.5 meter upper interval of the pay zone indicated both severe formation damage and low
permeability. Based on the overall combined oil indicators and the wire-line log evaluation, the well was cased as a potential oil
well. Application to complete and perform production testing will be made immediately. As a result of further regulatory
applications and approval requirements, operations will resume in the new year.
At the U.K. Fiskerton prospect, Cirque has acquired and interpreted an additional 25 km of seismic data and a final surface
location has been identified. A surface lease has been negotiated and the application to drill will be made immediately. Cirque
anticipates receiving regulatory approval by March, 1997 with drilling to commence in early spring.
For the six months ended September 30, 1996 revenue increased 52% from $1,135,000 to $1,723,000. Cash flow from
operations for the period increased 56% from $725,000 to $1,134,000. Production during the six month period averaged 431
barrels of oil per day plus 405 thousand cubic feet of gas per day. Subsequent to the end of the reporting period, gas
production net to Cirque increased to 900 mcfd due to the recompletion of a well in the Cessford area. Net earnings for the six
months increased 75% to $305,000. Capital expenditures totalled $1,025,000.
ON BEHALF OF THE BOARD OF DIRECTORS
OF CIRQUE ENERGY LTD.
Glen A. Phillips,
President & C.E.O.
The Alberta Stock Exchange has neither approved nor disapproved the contents of this news release. |
