DRILLING RESULTS FOR VENADILLO-1
August 18, 1999 Trading Symbol: CWI
The Company is very pleased to report the initial results and current status of the drilling operations of the Venadillo-1 exploration well on the Lagunillas block, Magdalena Valley, Colombia. Can West is the operator and has a 100% working interest in the 100,000 acre Lagunillas block.
The well reached total depth of 3,320 feet on August 18, 1999. The well encountered very encouraging oil and gas shows in the targeted Doima formation, surpassing in quality the shows in the nearby Halcon-1 well. Significant oil and gas shows were recorded from 3043 to 3314 feet and there was abundant oil in the shale shaker and pits in the original basal Doima reservoir target, from 3220-3250 ft.
The original basal Doima reservoir target is the strongest candidate for oil production, and the Company anticipates water-free oil and gas production. Other zones higher in the Doima also have strong oil and gas shows and are expected to contribute to production. The well will be completed with a gravel pack/slotted liner, which should allow for unobstructed production from all of these potential zones. The in-balance drilling technique used at the Venadillo-1 well has also greatly reduced the formation damage experienced in the nearby wells.
As of 10.00 a.m. August 18, 1999, the mud weight in the well has been increased to stem a constant gas influx from one of the zones. Logging of the well is scheduled to begin in the next 12 hours and is expected to take 24 hours to complete. A further update on the Venadillo-1 well will be issued upon receipt and interpretation of the logs.
The Venadillo-1 is located in the Middle Magdalena Valley, an area home to some of the largest oil and gas discoveries in the nineties. Seven Seas and Harken Energy have both had world class discoveries in the valley. The Venadillo-1 has been drilled into what the Company believes is the first of five geologically defined distinct reservoirs and the intention of the Company is to drill each of these structures. Management is extremely pleased with what appears to be a successful first well in Colombia.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CAN WEST EXPLORATION INC.
?Chris Wright?
Director
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