Interest in Swan Hills gas discovery to be increased
First Star Energy Ltd FST
Shares issued 24,016,195 Oct 19 close $0.41
Tue 20 Oct 98 News Release
Mr. John Squarek reports
First Star Energy has reached an agreement to increase its working interest
in the ACL et al Strachan 2-22-38-8W5 Swan Hills gas discovery to 55 per
cent before payout and 42.5 per cent after payout. This Strachan area
purchase includes an additional 17.5 per cent to 18.5 per cent working
interest in 5.5 sections, and a 100 per cent working interest in two
sections, all within the township. This purchase is effective Oct. 1, 1998,
and subject to the normal partner, financial and regulatory approvals, is
expected to close by Dec. 31, 1998.
As a result First Star's interest in the Mississippian test well and the
Swan Hills development well expected to be drilled within the next six to
nine months will be 42.5 per cent.
This transaction will increase First Star's acreage position in the
Strachan area play to approximately 36 gross sections (23,040 acres) and 15
net sections (9,600 net acres). On closing, First Star, with an average
working interest of 41 per cent, will become the operator of the project.
This purchase makes First Star one of the largest interest holders in an
area with potential for multiple Swan Hills and Devonian D-3 natural gas
prospects in the 100 to 500 bcf range.
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