Well,well,well!!!
Lookit this whilst I was sleeping STF/BEA issued a letter to shareholders. Since no one has posted it here; I guess no one else got it or cares. Letter is very interesting and raises some questions and more than a little hope. Here it is; comments???
May 31, 2000
To the Shareholders:
TURNER VALLEY NORTH OIL & GAS PROJECT (7.45%-28.36%)
Accompanying this letter is a one-page excerpt from an eight-page wellbore assessment report of
the IMP Berkley Turner Valley 2-21-21-3 W5M discovery well, prepared by the consulting
engineering firm of Ashton Jenkins Mann. The report was commissioned by Dynegy Midstream
Services to determine whether or not this well is a significant gas well, as Imperial Oil Resources
Limited asserts, or if the wellbore actually contains an oil leg and a gas cap, as per the Stampede
interpretation. The well is located in the Dynegy/Stampede et al area of common interest as set
out in the January 21, 2000 Dynegy/Stampede Pipeline and Processing Agreement.
This excerpt from the Ashton Jenkins Mann wellbore evaluation of the IMP Berkley Turner Valley
8-21/2-21-21-3 W5M well (2-21) exhibits a determination of 15.4 metres (50.5 feet) of gas
zone and 15.5 metres (50.85 feet) of underlying oil column. Though the Ashton Jenkins Mann
report is essentially a wellbore evaluation, the calculated oil reserves in place, extrapolated to 640
acres and incorporating a complete Turner Valley section oil leg should be in excess of 20 million
barrels.
The enclosed two Martin & Brusset Associates evaluation report excerpts are taken from a
geological/engineering evaluation report prepared for Stampede et al for financial purposes. This
evaluation report deals basically with only three spacing units (1.5 sections out of 4 sections),
which represents only a very small portion of the overall interpreted oil pool. This report has
determined 11.3 metres (37 feet) of gas pay and 13.5 metres (44.3 feet) of underlying oil pay in
the Imperial 2-21 wellbore.
This report calculates that with an average 44.29 feet of oil pay the Regional Turner Valley reservoir
underlying Section 21 should hold a minimum of 7,826,000 barrels of oil in place. A primary
recovery factor of 20% plus 30% secondary recovery should enable a minimum of 3,913,000
barrels of oil to be recovered. Another 6,283,000 barrels of probable recoverable oil are assigned
to the adjacent 640 acres. The gas cap, in Section 21 only, is determined to hold 4.84 billion cubic
feet (BCF) of proven recoverable gas.
It also highlights that the recorded pressure responses in this wellbore support the interpretation of
a large areal extent oil pool. The P&NG rights held by Stampede et al cover approximately
30%-40%, at this time, of the indicated minimum lateral extent of this pool, which is 42,240
acres (66 sections). IT IS EMPHASIZED THAT THESE TWO INDEPENDENT THIRD-PARTY
EVALUATION REPORTS HAVE DETERMINED A SIGNIFICANT REGIONAL TURNER VALLEY
FORMATION OIL LEG WITH AN OVERLYING GAS CAP IN THE IMPERIAL 2-21 WELLBORE.
TURNER VALLEY SOUTH (HARTELL) GAS (19.125% - 26.55% BPO)
Also accompanying this letter is a one-page excerpt from a Martin & Brusset Associates
engineering evaluation report on the Turner Valley South Crossfield gas pool. This excerpt deals
with the total proven reserves related to the 4-13-19-2 W5M gas discovery well and the probable
reserves related to the deepening of the offset 11-12-19-2 W5M well. The currently suspended
11-12 well is at a total depth approximately 1,000 feet above the target Crossfield gas reservoir
and as this well is logged, the structure at this location is confirmed. The reserves attributed to the
Turner Valley South Crossfield gas pool in this report relate only to 2,281 acres (3.5 sections),
with a net average gas pay of 131.5 feet. The recoverable gas from 4-13 is predicated to only 26
years of production, and production after that time is not taken into account. These recoverable raw
gas reserves are calculated at 126.885 billion cubic feet (BCF), which translates into sales gas
(marketable) of 82.476 BCF after the removal of sulphur and various byproducts. Recovery factor is
75%.
Good seismic coverage and well control has determined that this Devonian gas pool underlies
approximately seven sections (4,480 acres). An application to deepen the offset 11-12-19-2 W5M
well will be submitted in the next two weeks.
Gas production from the Hartell Turner Valley South gas pool is expected to commence prior to the
end of this year and should contribute to a significant revenue position. The two wells are expected
to commence production at a combined rate of approximately 15 Million cubic feet (mmcf) per day.
OTHER
An application for a drilling license for the Stampede Turner Valley 2-34-20-3 W5M oil well was
submitted to the EUB on Thursday, April 27, 2000. The Company is hopeful that the drilling license
may be issued in the next few weeks, as the surface lease for this well is located within the
boundaries of the Turner Valley oil field amongst some existing pumping oil wells.
Berkley Petroleum Corporation commenced drilling the 10-16-21-3 WSM well in early April this year.
This location is adjacent to Section 15, where the Stampede/Bearcat drilling license application was
denied in December, 1999. Stampede has a carried 7.45% interest in this well. The operator
intends to total depth the wellbore in the interpreted gas cap zone of the Regional Turner Valley
formation. This well should reach total depth by mid June.
Another company intends to use the same drilling rig to drill a well on Section 5 Township 22 Range
3 W5M, adjacent to the Stampede planned 6-8-22-3 W5M location, for which an application for a
drilling license has been made. The Section 5 well should commence drilling in July.
The Company acknowledges the patience and ongoing support of its shareholders regarding the
Turner Valley project.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein. Stampede Oils Inc. is listed on The
Canadian Venture Exchange under the symbol STF
Later
Keith
Ps I got the letter from the STF website, the excerpts are not posted there, when I get a minute I'll look elsewhere and at a minimum call Pam on Monday and ask that the excerpts be posted as well. |
