Energy Power Systems Limited Expands Oil & Gas Exploration With Multi Well Drilling Program
TORONTO--(BUSINESS WIRE)--Oct. 11, 2001--Energy Power Systems Limited (OTCBB: EYPSF) (www.epsx.com) ("Energy Power" or the "Company") announces that a recent 3D seismic program in the Farrow Prospect, Alberta has identified a valley fill channel complex that covers approximately 1/2 a section of land (320 acres). Re-entry of a previously logged and cored well bore has now commenced to drill out cement plugs, complete and test the potential of 10 metres (approximately 32 feet) of oil pay in the Glauconite Channel. If successful the re-entry well could be first of a multi well program in the Farrow Prospect. Energy Power holds a 31.5% interest in the Farrow Prospect.
Energy Power has now agreed to participate in an exploration program encompassing 6 sections of land (approximately 3840 acres) in the Olds area of Alberta (the Olds Prospect). The initial program will drill 3 prospective plays of 2 sections each (1280 acres) (a Test Well and an Earned Section). One well is a multi-zone natural gas prospect and the other two Test Wells are expected to be Viking gas by-pass pay zones. Drilling of the first Test Well is imminent and the other 2 Test Wells are anticipated to spud by the end of October. The Company has a 25% interest before payout and a 12.5% interest after payout in each of the Test Wells in the Olds Prospect and earns a 12.5% working interest (Earned Interest) in an additional land section by drilling each Test Well. If successful the program operator anticipates further drilling of the 3 Earned Sections in the new year.
The Company has a 30% interest in a prospect in the Cherhill area of Alberta. The Cherhill Prospect indicates a 2.5 metre (approximately 8 feet) natural gas pay zone in the lower Belly River formation. The spudding of this well is also expected by the end of October.
The multi well program is expected to cost up to $900,000 depending on completion costs and will be funded from current working capital.
About Energy Power Systems Limited
Energy Power is an integrated energy source and service company operating as an Oil & Gas Division and an Engineering and Offshore Division. On October 4, 2001 Energy Power announced that its Engineering & Offshore division was awarded a $3.0 million contract to rebuild a process heater and associated structural steel fabrication and installation at North Atlantic Refining Ltd. Accordingly both operating divisions are active in the energy sector.
The Company has approximately 7.3 million shares of common stock outstanding.
*T For further information contact: Sandra J. Hall
Vice-President Corporate Affairs
Telephone: (866) 230-3305
Certain of the statements contained in this news release are
forward-looking statements. While these statements reflect the
Corporation's current beliefs, they are subject to uncertainties and
risks that could cause actual results to differ materially. These
factors include, but are not limited to, the demand for the
Corporation's products and services, economic and competitive
conditions, access to debt or equity capital on favorable terms, and
other risks detailed in the Corporation's Form 20-F and Annual Report.
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Suite 301, 2 Adelaide Street West,
Toronto ON M5H 1L6
Telephone: (416) 861-1484
Facsimile: (416) 861-9623
www.epsx.com
CONTACT:
Energy Power Systems Limited
Sandra J. Hall, 866/230-3305
KEYWORD: INTERNATIONAL CANADA |
