FIELD ACTIVITIES / Pendaries Petroleum Announces Results Of CFD
1-1-1
TSE SYMBOL: PDQ
OTC Bulletin Board SYMBOL: PENDF
FEBRUARY 9, 1998
TORONTO, ONTARIO--Pendaries Petroleum Ltd. today announced the
results of the CFD 1-1-1 well located on the 04/36 block in the
Bohai Bay of the People's Republic of China. The well reached a
target depth of approximately 13,960 feet and has been deemed not
commercially viable. Although there were good hydrocarbon shows in
an upper level over a 500 foot interval, further analysis
indicated that this interval has permeability too low to permit
commercial production. No significant shows of hydrocarbons were
detected while drilling the buried-hill section.
"We are in the early exploration stage of a large inventory of
over two dozen high-quality prospects, and we remain confident of
the commercial viability of our long-term corporate strategy,"
said Robert E. Rigney, Chairman and CEO of Pendaries. "To this
end, during 1997, our proved reserves increased from 1.85 million
barrels to 4.4 million barrels as a result of three successful
delineation wells drilled on the CFD 2-1 prospect. In addition, we
are currently involved in the process of evaluating a "fast-track"
production plan for the CFD 2-1 discovery area and are optimistic
that our expectations will be met."
The 1998 drilling program for Pendaries includes exploration wells
on three high potential prospects in Bohai Bay coupled with the
drilling of the first exploration well on Block 27/11 in the South
China Sea. In addition to these exploration wells, Pendaries will
complete 3D seismic interpretation on the CFD 2-1 prospect to aid
in the development of the fast-track production plan now being
studied. Also, the program calls for the evaluation by seismic and
drilling of the CFD 11-1 prospect on Block 04/36 which recorded
more than 200 feet of oil pay in the HZ-1 well drilled by the
Chinese in 1973.
Pendaries has a 10 percent working interest in CFD 1-1-1, along
with partners Kerr-McGee China Petroleum Ltd., a wholly owned
subsidiary of Kerr-McGee Corp. (45 percent), and Murphy Pacific
Rim Ltd. (45 percent). Block 04/36 is one of four blocks in Bohai
Bay in which Pendaries has an interest. |
