FIELD ACTIVITIES / Benz Energy 1997 results & 1998 Capital Budget
Monday January 12, 1:25 pm Eastern Time
Company Press Release
SOURCE: Benz Energy Ltd.
Benz Announces 1997 Results and Capital Spending Plan for 1998
HOUSTON, Jan. 12 /PRNewswire/ -- Benz Energy Ltd. (Vancouver: BZG - news) reports that the Company drilled 8 exploratory wells and has completed or is completing 5 wells for a 71% success rate with 1 well still drilling. In addition the Company drilled 4 development wells and has completed or is completing 4 for a 100% success rate. The Company also substantially increased its net production to the current level of 4.5 million cubic feet per day and 100 barrels per day.
The Company's 1998 capital budget provides for a total of $43.5 million for drilling and project development. Approximately half of the capital budget will be focused on development drilling, and approximately $7 million is budgeted for drilling and testing 10 prospects and completing the drilling and testing of 2 prospects carried over from 1997. Among plans for the coming year are the drilling of the Company's Wausau prospect in Mississippi, additional exploitation at Oakvale Dome Field and exploratory drilling at Old Ocean Field and LaHinch Prospect in Texas.
The Company's 1997 results include significant discoveries at Oakvale Dome Field and Reedy Creek Field. The Company's discovery well at Oakvale Dome in Jefferson Davis County, Mississippi, has performed significantly better than 3rd quarter estimates. The Kathryn Saltry Byrd #1 well has produced 664,808 MCF and 3,206 barrels of oil to date, and current daily production is 7.4 MMCF and 35 barrels of oil. In addition, 30% of the gas at Oakvale has been hedged in the futures market at $3.50 per MMBTU. The Company holds a 54.1% working interest in the prospect.
Year-end re-completions of the BOE 16-3 #1 and Hosey wells at Reedy Creek Field, Jones County, Mississippi, where the Company presently has 4 wells and a 23.9% working interest, are expected to significantly improve production. The Hosey completion tested rates of up to 250 BOPD from one third of the interval to be completed, and the BOE 16-3 #1 is still underway. The remaining two wells were being completed as of year-end. The Herrin 9-7 #1 well recovered 150 barrels of oil in its first full 24 hours of testing while pipe has been run to 10,020 feet. The BOE 16-3 #2 well has had pipe run to 10,020 feet and several indicated commercial oil sands have been logged.
The 2 wells currently being evaluated by Benz are the Jennings and Big Creek prospects. Jennings has been drilled to 14,630 feet and 2 indicated commercial pay zones have been logged, and the well is awaiting a completion unit. The George W. Mason 17-10 #1 well at Big Creek in Mississippi has logged significant indicated commercial pay intervals the Company is preparing to complete.
The BOE 16-14 #1 well at Morgantown in Marion County, Mississippi has reached a depth of 20,304 feet and is still drilling to its targeted depth below 21,000 feet.
Benz Energy Ltd. is an exploration and development oil and gas company based in Houston, Texas and focused on the onshore Gulf Coast of the U.S. Benz acquires and utilizes an extensive base of 3-D seismic data and acreage position, and has assembled an inventory of 28 leased exploration prospects. |
