UPTON RESOURCES INC ("URC-T;UPTRF-L")
- Updates Operations
In May 1999, Upton targeted production volumes to increase 38% from 2900 barrels a day to 4000 barrels a day by December. Since then, Upton drilled 24 (22 net) wells at an average working interest of 91.7%, and despite selling almost 300 barrels a day of non-core production, December 1999 volumes jumped past target levels to average 4400 barrels a day. The 1500 barrel (52%) increase was achieved with net capital expenditures of just over $10 million, a very low cost of $7,100 per producing barrel.
Our excellent progress in maximizing returns from an extensive drilling inventory is expected to continue in 2000. Strong oil prices in 2000 will allow Upton to drill over 50 wells at an average working interest of 90%. First quarter 2000 drilling will include 17 (14.5 net) wells including 8(6.1 net) horizontal and 9(8.4 net) vertical wells, five that will be exploration tests. To date, Upton has completed 5(3.4 net) wells and has two rigs drilling.
Upton's recently completed horizontal Fryburg well at Tracey Mountain, North Dakota has been placed on production. The well, extending horizontally through 4000-ft (1200m.) of porous oil reservoir, is initially being produced at 350 barrels of fluid a day. The pump is set at 8600 ft (2600m.) and after 3 days the fluid level is 270 ft (80m.) from surface. Oil cuts of light (46 API) sweet oil are exceeding 50% and improving daily. Due to fluid losses during drilling exceeding 1200 barrels, we are encouraged by the well producing oil this soon and by an exceptional fluid entry into the wellbore. Upton has a 27% interest in this well and 20 to 47.5% in the adjoining 12,000 acres. The Fryburg beds are one of two zones which are productive and prospective in and around Upton's acreage. Upton's 2000 budget includes an additional 3 to 4 wells at Tracey Mountain to further evaluate the 35-40 potential follow-up locations.
The common shares of Upton are listed on the Toronto Stock Exchange under the symbol "URC".
TEL: (403) 218-6080 Scott Dutton, President & C.E.O.
Upton Resources Inc.
TEL: (403) 218-8978 Phil Grubbe, V.P. Finance & C.F.O.
Upton Resources Inc.
TEL: (403) 218-6092 Andre St. Onge, Vice President, Exploration
Upton Resources Inc.
INET : www.uptonres.ca
EMAIL: upton@uptonres.ca
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