FIELD ACTIVITIES / Devlan Corp updates Drilling Results
CALGARY, Feb. 25 /CNW/ - DEVLAN EXPLORATION COMPANY LTD, (DVX) has
perforated and tested three of four zones that encountered hydrocarbons in
their first appraisal well, Devlan 44-18 of the Highland Ranch play located
in Wyoming, USA. After establishing the presence of oil in all three zones,
stimulation costs dictated a decision to complete the Frontier zone first. A
frac procedure was completed and the isolated zone is currently being flow
tested. It is too early to establish a stabilized production rate.
Reserves have been estimated at 200,000 STB ($1,812,000 at 12% NPV
($U.S.)) for this location. The significant potential of Highland's total
acreage (7,855 acres) and the remaining fourth zone, the Sussex, will be
addressed in an independent engineering evaluation that will be completed
subsequent to the Frontier being put on continuous production. U.S.
regulations require that a battery installation be completed before this can
be achieved and construction is already underway,
This evaluation combined with the current 20.5 km seismic program will
determine the future development plans for the Highland Ranch area. The
original prospect focused primarily on the Dakota Sand. From the appraisal
results, the Company is confident that there are three additional zones that
must also be considered prospective in the future.
In addition to the aforementioned property, Devlan has been diligently
working on a second prospect, known as the Pinetree play located in the same
area. Due to competitive reasons, the Company has not previously released any
information with regards to this series of land acquisitions. As of February
23rd, an additional 1,160 acres (net 920 acres) was secured, bringing the
total Pinetree acreage to 4,199 (net 3,959). This prospect primarily targets
the Frontier zone combined with several prospective upper zones.
As an update to the Canadian side of Devlan's ongoing operations an
acquisition of a 2,080 acres prospect that identifies a Sawtooth opportunity
from seismic data is the first of several initiatives the Company expects to
bring to fruition. Farmout negotiations are underway with an industry partner
whereby Devlan would remain operator of the project. A spud date for the first
well is expected to be after breakup.
DEVLAN EXPLORATION COMPANY LTD, (DVX) is a Calgary, Alberta based company
engaged in the business of oil and natural gas exploration and production,
trading on the Alberta Stock Exchange. |
