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Hilton drilling progress on East Lost Hills, Cal Canal and Enserch
Hilton Petroleum Ltd HTP
Shares issued 18,382,792 Jul 23 close $3.11
Fri 23 Jul 99 News Release
Mr. Donald Busby reports
The company's focus for 1999 is the San Joaquin Basin at East Lost Hills
near Bakersfield, Calif. The company is participating in two high-impact
joint ventures. The company has released the following review of current
operations.
East Lost Hills Joint Venture
The Bellevue No. 1-17 replacement well is at a depth of 17,100 feet and is
directly above the Temblor pay zone. This well is being drilled 700 feet
from the blow-out well. Casing is now being set and drilling should resume
in the first week of August. Management believes that there is a very good
chance of drilling the total Temblor formation to 1,900 feet. Once the well
is completed and tested, the company should be in a position to book its
first reserves at East Lost Hills.
A second rig is being moved onto the East Lost Hills property and is
scheduled to commence drilling on a new location in early August. The
location is two miles northwest of the present drill site. Drilling of this
well is expected to take 120 days.
The drill rig currently working on the Bellevue No. 1-17 redrill well, once
drilling is completed, is scheduled to be moved to a new location at East
Lost Hills. This is expected to take place in September.
Greater San Joaquin Basin Joint Venture
Cal Canal, the Greater San Joaquin Basin joint venture's first prospect to
be drilled, is presently at a depth of 10,000 feet and will be at the top
of the Temblor at 14,400 feet. The drill rig, when finished at Cal Canal,
will be moved to the Lucky Dog prospect.
The joint venture has been successful in acquiring additional lands and
identifying new prospects in the Greater San Joaquin Basin and exploration
activities are anticipated to increase over the next several months.
Management considers these new prospects to be very significant.
The company holds an interest in producing properties in the United States
referred to as the Enserch properties. An update on operations and
management's plans for the remainder of 1999 follows.
Enserch Properties
The company has recently drilled three in-fill wells on its Texas
properties. This should increase gas production by 750,000 cubic feet of
gas per day. This is the first in a program of development drilling that
the company is undertaking. The company has spent approximately $300,000
(U.S.) of a $500,000 (U.S.) development program.
With the recent recovery in commodity prices, the company is assessing the
sale of a portion (up to 50 per cent) of this portfolio of producing
properties. The proceeds of this sale would be used to reduce bank debt.
This transaction would significantly enhance the company's balance sheet.
The previously announced drill programs and schedule for reaching the
target zones on the Californian prospects are essentially on schedule.
During August and September, two wells will be penetrating the Temblor. If
all goes well by the end of the year, three wells should be to total depth
in the Temblor and two more nearing total depth in the Temblor. Management
has very high expectations for this area and the next two months will prove
to be very key in the development of the company.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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