Dale, here is the latest from the 2-34.Would anyone happen to know who the possible Pacific Rim investor be?
TURNER VALLEY PROJECT UPDATE
(Website Advisory)
July 18, 2002
The following is an update regarding Bearcat's operations.
The current main operation of the Company is to facilitate increasing non-stop commercial oil production from the Stampede Turner Valley 2-34-20-3 W5M new pool oil discovery well. The initial production operation is being utilized to remove acid induced sludge blockage material from the near wellbore reservoir area. Last weekend the well experienced an indicated breaking-out of copious amounts of this emulsion sludge blockage material from an indicated zone of high porosity/permeability, in the Regional Turner Valley reservoir. This was preceded by a very significant gas kick. The clearing out of this sludge also allowed for the recovery from the reservoir of a fair quantity of trapped load water over the past two days. By mid day, Monday, July 15th this had been followed by production fluid containing 75%-90% oil content at approximate rates in excess of 200 barrels per day. The well is now expected to experience variable production rates related to recovery from the reservoir of the acid-induced plugging material.
The produced fluid and related water recovery amounts to date, at the field battery facility that the 2-34 well has been forced to be tied into, are indicated to have a very high degree of unavoidable inaccuracy. This is not surprising as the equipment at the battery was manufactured in 1939. This battery only allows for actual direct production measurements from the 2-34 well for approximately three-six days per month. The rates during the rest of the time frame are averaged on prior indicated amounts. It has been physically demonstrated that the indicated recovered water may be as much as ten times higher than the actual amount. The Company is currently considering the installation of a temporary three-phase separator unit to ensure more accurate production measurements.
Since late Friday afternoon of July 12th, the well has been producing at variable rates up to and in excess of 200 barrels per day from the reservoir with occasional sporadic down hole pump gas lock periods. A production sensing gauge installed at the well on Thursday, July 11th, determined 178 barrels of fluid were produced through the course of Thursday night/Friday morning. It is indicated that the down hole pump is also being affected somewhat at various times by the sludge blockage material passing through it with the oil.
The amount of CaC03 and acid-derived emulsion sludge blockage material still to be recovered from the reservoir, are being subjected to an ongoing removal process, the result of which will be higher rates of oil production as the oil flow rate characteristics of the reservoir are continually improving. The well will definitely experience sporadic plugging effects for a while longer, but rates will improve on a continuing basis. The operational stage of the 2-34 well currently is to produce it on a slow and easy basis, allowing the production zone to clean itself out in a manner to minimize plugging of sludge material yet to be recovered. The Company has no cause to lower its estimate for the expected ultimate production capability of the well.
In the northern part of the Turner Valley project area, approximately eight miles to the north of the Stampede 2-34 well, a development well has been drilled successfully by another operator in Lsd 6 Sec 8 Twp 22 Rge 3 W5M. Bearcat has a total 7.3192% interest in this well, which includes working and carried working interests.
Related to the 6-8 well, the following information is considered by the Company to be of interest to all shareholders. Bearcat and its partners have been forced into a legal action whereby Anadarko Canada Energy Ltd. is now maintaining, wrongfully, that it has an interest in the above-mentioned Section 8 development well, such interest including part of that held by Bearcat. Anadarko (Berkley) filed a Statement of Claim against the Company and its partners in an attempt to be assigned, wrongfully, a 25.2% working interest in the Section 8 development well. This action was actually stalled by Anadarko until the drilling and logging of the 6-8 well had been completed.
As this is a current action, Bearcat is not in a position to comment in any great detail regarding any overall specifics. However, it can be stated that the Bearcat group is under advisement that it has a very strong defense in this action and additionally, the group has initiated a counter-claim action against Anadarko in the amount of approximately $15.6 million (Can.). It is apparent that Anadarko is taking a "might is right" approach in this lamentable process. Despite the fact that Bearcat at this time would be classed as a very small Canadian junior, especially compared to the size of Anadarko and affiliated companies, it is not about to be intimidated by Anadarko's attempt to wrongfully deprive Bearcat and its shareholders of an indicated very significant oil and/or gas reserve asset.
The Company and its partners are at this time conducting negotiations with a very large Pacific-Rim based international oil and gas corporation regarding possible ongoing involvement in the Turner Valley project. A conclusion to these negotiations would have to be of extremely high merit and provide significant value to Bearcat and its shareholders before an agreement would be entered into.
Bearcat takes this opportunity to again thank all shareholders for their steadfast support regarding the Company's operations. The Company and its shareholders have nearly reached the end of a long trail. Your continuing support will be well placed and greatly appreciated. This will provide the support necessary to ensure continuity of corporate direction and the successful ongoing exploitation of the Turner Valley oil project in as short a time as possible. Bearcat's overall value will escalate accordingly.
This letter will be posted on the Company's website.
By the end of July, an update website advisory on the 2-34-20-3 W5M oil discovery well will be issued. The current operational mode indicates that it will be very positive. |
