FIELD ACTIVITIES / Firstland Energy Limited - Exploration
Update
ASE SYMBOL: FLD
JANUARY 28, 1998
CALGARY, ALBERTA--Industry partners have cased a 2,550 meter test
on Company Lands in the Wembley area of northwest Alberta as a
potential gaswell. The well was drilled as part of an option
farmout agreement on a 4,480 acre tract of land owned 50 percent
by FIRSTLAND. FIRSTLAND will have an overriding royalty in the
well convertible to a 20 percent working interest after payout and
a 20 percent working interest in the 1,920 acre tract earned by
the well. The industry partner holds a continuing option to drill
up to 2 more wells to reduce FIRSTLAND's interest to a 25 percent
working interest in the remaining 2,560 acres in the tract.
FIRSTLAND also has the right to elect to participate as to a 20
percent working interest in an earlier 2,600 meter test completed
as a potential gaswell and various P&NG rights acquired within the
area of mutual interest according to the drilling option
agreement.
At Chinchaga, FIRSTLAND holds a 15 percent non-convertible royalty
in a 900 meter Debolt test completed as a potential gaswell on a
1,280 acre tract while at Hotchkiss a 792 meter Debolt test was
cased as a potential gaswell and subsequently abandoned.
Further drilling on Company lands at Cranberry is underway, a well
at Trout is anticipated to commence shortly.
Also in the Chinchaga/Halverson region of northwestern Alberta,
where FIRSTLAND is involved in a major joint venture, partners
have recently completed a seismic programme and hold an option to
drill up to 2 deep Slave Point tests. |
