Hi Joe:
The following is document off BEA's web site that notes they have the money to drill the next well, I shall ASSUME it's accurate. There is also a note on Berkely's web site under Alberta Exploration, that seems to indicate the well they drilled with ESSO would be put on stream in the second half of 1999. I don't know how recent that statement is but I did not see anything that indicated any progress with putting on line any of the wells, when I was last in the area(Oct. 20th). Regards Tant.
September 17, 1999
TO THE SHAREHOLDERS:
The Company, as operator of the Turner Valley project, advises that as of September 17th, it will be two and one-half months since the EUB public hearing ended, pertaining to the issuance of a drilling license for the proposed Stampede et al TV 11-15-21-3 W5M well. This amounts to a delay of approximately 1.25 years since the Company started proceedings to apply for this drilling license. Stampede is confident that it was able to address satisfactorily, any and all concerns, legitimate and/or contrived, that were brought up at the hearing. The Company has a good record of dealing with all area residents in the vicinity of its operations and has gone out of its way to ensure that any resident concerns have been responded to.
It is now hoped that a decision pertaining to the issuance of the drilling license for the 11-15 well will be forthcoming shortly. Any possible reason for further extensive delays would not be readily apparent, especially with regard to the Company's good record regarding its overall drilling operations since 1993 to date, in the Turner Valley area.
Stampede has operated a total of seven major deep drilling and completion programs since October, 1993, equating to a period of 908 consecutive operational days (2.49 years), without any significant incident. Two minor odour complaints, one during the production testing of the Stampede Bcat et al Hartell 4-13-19-2 W5M well in mid 1994 and the other during the production testing of the Stampede Bcat et al Hartell 6-35-20-3 W5M well in late 1994 were immediately remedied. In February, 1999, one test operation experienced a two-hour grass fire.
To date, since 1993, Stampede and its partners have expended in excess of $28 million (Can.) in overall exploration and development costs in the Turner Valley area and in excess of $10 million in Crown P&NG lease acquisition.
""Financing arrangements have been made for the overall drilling operation of the Stampede et al TV 11-15-21-3 W5M well.""
It is common knowledge that oil and/or gas is not a resource that is found everywhere, whereas nowadays a house can be constructed in nearly any location. With today's technology, both types of development, high-density residential acreage and oil and gas exploration, should be able to co-exist, to their mutual benefit, in a manner that will not infringe upon their respective potential. Accordingly, as the Crown oil and gas resources of Alberta belong to all its citizens, the drilling of the Stampede et al TV 11-15-21-3 W5M well at the earliest possible time is definitely in the overall public interest, in order to determine the validity of Stampede's interpretation for the possibility of encountering major recoverable gas and oil reserves in this area.
As Stampede has conducted all of its Turner Valley oil and gas operations in a spirit of good faith, the Company is hopeful that this fact will not be disregarded in the decision making process and that the results will reflect a reciprocal spirit of good faith. A favourable decision resulting in the issuance of a drilling license in the near future is extremely important, especially when taking into account the primary term of Crown and Freehold P&NG leases that Stampede and its partners hold on the prospect. Primary term tenure is a source of great concern related to unwarranted third party operational delays. The EUB was recently quoted in the Daily Oil Bulletin that public hearing decisions are now being made in an average time frame of two months. Hopefully this may mean that the drilling of the Stampede Bcat et al TV 11-15-21-3 W5M well will be able to be completed before the winter months set in.
On a more positive note, a recent deepening operation of approximately 2,000 ft., in an older well in the main Turner Valley oil field by a major Canadian oil and gas company, is reported to have resulted in a new Turner Valley reservoir oil discovery. This well, located at 7-33-20-3 W5M, is one-half mile down-dip to another older well that was deepened in 1981 which encountered, what Stampede has interpreted to be, an oil/gas contact in a deeper, undeveloped Turner Valley overthrust sheet. This new well is expected to have in excess of 28 metres (90 ft.) of net oil pay. The well is currently being held on a confidential well status. Deepening operations by the same company, on another existing well, are expected to commence very shortly. This new Turner Valley oil zone is interpreted to underlie several of the Company's nearby oil and gas leases.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
STAMPEDE OILS INC. is listed on The Alberta Stock Exchange under the symbol STF.
WEBSITE: stampede.ab.ca |
