EQTY OIL FIND
Equity Oil Company Reports Further Drilling Success in North Dakota
and California
Four of Four Successful Wells Year to Date Having Positive Impact On Daily Production
SALT LAKE CITY--(BUSINESS WIRE)--June 10, 1998-- Equity Oil Company (NASDAQ:EQTY - news) announced
today the completion in North Dakota of a prolific new pay zone at a recently discovered oil well, as well as a second
consecutive gas discovery in its Merlin 3D project in the Sacramento Basin. With its year to date drilling success, despite a
reduced exploration budget due to lower energy prices, the Company has already replaced more than 50% of its original 1998
forecast oil and gas production.
Elaborating, the Company said that following the successful production testing of a second pay zone in the Westport Oil and
Gas Company No.24-15 Beaver Creek in Golden Valley County, North Dakota, the well's initial flowing potential was 1,800
barrels of oil, 1.3 million cubic feet of gas and no water from six feet of perforations in a new zone. As reported in April, the
well was initially completed in a lower zone, resulting in a daily rate of 390 barrels of oil, 130 MCF of gas and 67 barrels of
water. Equity has a 32.5 % working interest in the well. Westport Oil and Gas Company operates the well and holds the
remaining working interest.
Describing a second consecutive gas discovery on its 16 square mile Merlin 3-D project in Glenn County, California, the
Company said the Equity No. 1-22 Otto Lohse tested 2.4 million cubic feet per day from perforations at 5,525-5,540 feet, in
the Cretaceous Forbes formation. In addition, a second Forbes reservoir from 5,414 - 5,463 feet, which drill stem tested 6.5
million cubic feet per day, represents proved behind pipe reserves. The initial Merlin project gas discovery, the No.1-15
Henning, has recorded cumulative gas sales of 250 million cubic feet of gas since February and continues to produce at a rate
of 2.6 million cubic feet per day. Equity anticipates combined gross sales of 5 million cubic feet per day from both wells.
Equity operates and maintains a 50% working interest in the No.1-22 Otto Lohse well and the Merlin project. Other working
interest owners include Sharon Energy Ltd. with a 20% interest and Hallador Petroleum Company [OTC BB:HPCO - news]
with a 30% interest. The Company estimates that 4 additional prospects remain within the Merlin geophysical survey area.
Additional drilling on the survey is planned for the fourth quarter.
Paul Dougan, President of Equity, commented, ''The Otto Lohse and the Henning completions represent two of the better
wells in terms of estimated total reserves drilled to date in our California exploration program. The Beaver Creek well is one of
our most prolific oil wells in recent memory. These three wells will provide an immediate boost to our daily production going
forward.''
Mr. Dougan continued, ''Reflecting current market conditions, our 1998 drilling program is focused on prioritizing drilling
projects based on their assumed risks and rewards, and balancing this with projects that have specific lease related drilling
commitments. It is therefore particularly rewarding to report we have successfully completed all four of the wells we have
participated in, and have already replaced a significant portion of our forecast 1998 oil and gas production. While we have two
additional wells drilling at this time, the bulk of our drilling will take place in the second half of the year.''
Equity Oil Company, headquartered in Salt Lake City, Utah is an independent oil and gas exploration and production company
with operations in ten states and Canada. It also owns 50% of Symskaya Exploration, Inc. which holds a 1.1 million acre
exploration License in Russia.
Contact:
Equity Oil Company, Salt Lake City
Paul M. Dougan or Clay Newton
(801) 521-3515
or
Donenfeld Group, Inc., New York
Ken Donenfeld or Cathy Gannon
(212) 425-5700 |
