FIELD ACTIVITIES / Ocelot Energy commences Production in Gabon
CALGARY, March 11 /CNW/ - Ocelot Energy Inc. announces the start-up of
oil production operations in Gabon by its subsidiary Ocelot Nze Gabon Inc.
Start-up operations have commenced and normalized production and sales
operations are anticipated in March, after thorough testing of the facilities
and wells.
Construction of crude oil production facilities including treaters,
16,000 barrels of storage and a 6.5 kilometre pipeline was completed in
February 1998. The initial shipment of crude oil by barge down the Rembo
N'komi River to the terminalling facility at tidewater is anticipated this
month. Crude oil production from the first three wells completed in the
Obangue pool is anticipated to average approximately 1,800 barrels of 34
degrees API oil per day once stabilized rates are established.
Since initiating drilling operations in September 1997, the Company has
drilled three wells and has recompleted one well in the Obangue pool. The
Obangue oil pool is one of four previously discovered pools in the Company's
Panthere-Nze development permit. In addition to the Panthere-Nze permit,
Ocelot has interests in two contiguous exploration permit areas in Gabon
aggregating 1.3 million acres.
As previously announced, two vertical wells were tested at a cumulative
rate of 3,000 barrels of oil per day and are anticipated to produce at a
combined stabilized rate of 800 to 1,000 barrels of oil per day. The third
well was drilled at the edge of the pool but did not encounter hydrocarbons in
commercial quantities. Current plans are to re-enter and drill this well
horizontally at a future date. The fourth well was the first horizontal well
drilled into the Obangue reservoir. The well was completed with a horizontal
leg of 510 metres. This well was flowed at staged rates of 500 to 1,500
barrels of oil per day and is forecast to be capable of stabilized production
rates of approximately 1,000 barrels of oil per day.
As at December 31, 1997, an independent engineering evaluation assigned
proven reserves of 12.8 million barrels and more than 19.0 million barrels of
probable reserves to the Company's interest in the Panthere-Nze permit.
The Company has completed initial interpretation of a 25 square kilometre
3-D seismic program completed in 1997 over the Obangue pool and is currently
reprocessing and interpreting over 1,500 kilometres of 2-D seismic (recorded
by previous operators) on the two exploration permit areas. Reprocessing of
an additional 1,000 kilometres of previously recorded 2-D seismic will be
undertaken in 1998 as well. The Company has already identified a number of
highly prospective drilling targets on its exploration permits.
Ocelot Energy Inc. is a publicly traded international energy company
engaged in the exploration, production and marketing of oil and natural gas.
Ocelot Energy's Class B Subordinate Voting shares and Class A Common shares
are listed for trading on the Toronto, Montreal and Alberta stock exchanges
under the symbols OCE.B and OCE.A, respectively. For further information on
Ocelot, please visit our website at www.ocelot.ca. |
