(VSE:HTP) Quote.Com news item #10857708
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* HILTON PETROLEUM LTD. - CORPORATE UPDATE [55] [Canadian Market News from
Market News Publishing, 721 words]
Donald W. Busby, Chairman of Hilton Petroleum Ltd. (the "Company"),
announces he would like to provide the following corporate update:
The Company's focus for 1999 is the San Joaquin Basin located at East
Lost Hills near Bakersfield, California. The Company is participating in
two high impact joint ventures. A review of current operations follows:
THE EAST LOST HILLS JOINT VENTURE
* The Believue #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
approximately 700 feet from the blow out well. Casing is now being set and
drilling should recommence in the first week of August. Management
believes that there is a very good chance of drilling the total Temblor
formation - approximately 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 approximately 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 Believue #1-17 re-drill
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.
THE 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 approximately 10,000
feet and will be at the top of the Temblor at approximately 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 also holds an interest in a number of 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 US$300,000
of a US$500,000 development program.
* With the recent recovery in commodity prices, the Company is
assessing the sale of a portion (up to 50%) 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 of this area and the next two months will prove
to be very key in the development of the Company. Management will
endeavour to keep shareholders fully informed of developments as they
occur.
TEL: (888) 303-3361 Eland Jennings Inc.
(888) 948-0075 in U.S. - the MDC Group
(604) 685-9316 Donald W. Busby, Chairman, Vancouver
INET: www.hiltonpetroleum.com
(c) 1999 Market News Publishing Inc. All rights reserved.
Tel:(604) 689-1101 Fax:(604) 689-1106
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