Pete, I am writing to you to keep you informed as to what Silver Peak has been working on. The following is an overview of the Company's activities over the last two years.
The Company has been focused in the exploration and development in the Williston Basin of Montana and North Dakota.
A total of 39,822 gross acres in five townships has been acquired.
The company has reprocessed the original 2D seismic data and identified 41 structual Red River anomolies "bumps".
A 50 square mile 3D siesmic program was initiated last winter but due to climatic conditions the program was postponed. The 3D program was completed during the summer and the data was interpreted.
From the interpretation of the 3D data there currently exist 31 identifiable drill sites.
The potential to the Joint Venture could result in 9,300,000 barrels of oil reserves.
WHAT'S GOING ON NOW (AS OF OCTOBER 20, 1997)
The interpretation of the original 50 square mile 3D data has been completed. The results of the interpretation have revealed that the there is a 1,000+ acres field. The Company is in the process of acquiring the remaining land within the field and will be in a position to stake the well within the month. The Company anticipates that this prospect, "Linda", will accomodate a minimum of four wells and the reserves are expected to be in excess of 1,000,000 barrels of oil. The reason the company has not proceeded with other drill sites is the maginitude and significance of the "Linda" prospect. Once the remaining land has been acquired, the Company will proceed with the other identifiable sites.
The Company recognizes that the investment community is concerned with the progress of the oil prospects, but the Company wanted to ensure that the proper due diligence was adhered to prior to moving onto the next feature. The Company appreciates the continued support of the investment community.
Peter Aylett, Controller
Silver Peak Resources
Please visit our Web page at www.silverpeak.com to receive the latest information on the company.
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