Sept 17 Activity Update
The press release pasted below can be accessed at:
192.139.81.46
Canadian Corporate News
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FOR FURTHER INFORMATION PLEASE CONTACT:
Saxon Petroleum Inc.
Glen Tarrant
President and Chief Executive Officer
(403) 266-7111
(403) 264-1517 (FAX)
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: SAXON PETROLEUM INC.
TSE SYMBOL: SXN
SEPTEMBER 17, 1997
Saxon Announces Activity Update
CALGARY, ALBERTA--Recent drilling activity in the Bigoray area of
west central Alberta has resulted in three (2.9 net) new Ostracod
oil wells and one (1 net) recompleted gas well. Within the next
two weeks, all three oil wells, which have high gas/oil ratios,
are each expected to be producing in the range of 150-200 BOEPD.
These wells will be tied-in to the Company's 100 percent owned oil
and gas processing facility in the area which is capable of
handling 14 million cubic feet per day (MMCF/D). The recompleted
gas well has been flow tested at a stabilized rate of 3.6 MMCF/D.
The well is anticipated to be on production at 1.5 MMCF/D by mid
October when the installation of an upstream compressor is
completed.
Effective August 1, 1997, the Alberta Energy Utilities Board
granted Enhanced Recovery Recognition (ERR) with Good Production
Practice (GPP) status to the southern portion of the Bigoray
Ostracod Unit No. 1 and the adjoining Ostracod wells in Section
23.
The oil wells in Lsds 10-34, 11-34 and 16-34-51-8 W5M have been
added to the recovery scheme but will not receive ERR and GPP
status until adequate voidage replacement can be demonstrated.
Saxon has now received permission to reactivate an existing
waterflood scheme in this area of the pool and it is anticipated
that injection will commence no later than October 1, 1997.
Saxon's 16-34 oil well, currently shut-in due to over-production,
will resume production October 23 at a restricted rate of 50 BOEPD
and will return to full production of 250 BOEPD within ninety
days.
Saxon has also drilled a successful horizontal oil well in the
Pekisko pool at Bigoray with an initial production test of 200
BOEPD. The Company intends to drill four additional horizontal
wells in this zone prior to year end. The first well is expected
to spud next week.
In addition to the above drilling activity, Saxon has disposed of
all of its holdings of Forest Oil Corporation shares in the open
market for book value. The proceeds of $4.3 million have been
applied to reduce debt. |
