FIELD ACTIVITIES TOP 20 LISTED / Richland Petroleum Update
TSE, ASE SYMBOL: RLP.A
DECEMBER 10, 1997
Richland Announces Property Acquisition, Updates New
Discoveries
CALGARY, ALBERTA--Richland Petroleum Corporation today announced
that it has signed an agreement for the acquisition of 16.5 net
sections of land in the Bienfait area of southeastern Saskatchewan
for $3.9 million with closing to occur in early January. The
lands currently have 3 vertical wells and 1 horizontal well,
producing 150 barrels per day from the Midale Marly and Midale
Vuggy zones. Development plans call for the optimization of the
current wells and the drilling of up to 5 dual leg horizontal
wells, projected to increase production from the property to
approximately 600 barrels per day by mid-year 1998.
At Kingsford, in southeastern Saskatchewan, the recent discovery
well has now been put onstream, at production rates of 1,200
barrels of oil per day (Richland interest = 50 percent) on
restricted choke from the Red River zone. A second well has been
completed in the Winnipegosis zone and is currently flowing at
rates of approximately 600 barrels of oil per day. It is expected
that sustainable production rates from the Winnipegosis will
settle out at approximately 400 barrels of oil per day. Follow up
drilling locations are being evaluated for possible drilling in
1998.
At Crossfield, in west central Alberta, the discovery well has
been tied in and is producing from the Elkton formation at gross
rates of approximately 7 million cubic feet per day plus 150
barrels per day of natural gas liquids (Richland interest = 33
percent). The second well tested at rates of 2 - 4 million cubic
feet per day and a third well is being drilled horizontally into
the structure.
Current corporate production levels exceed 4,100 barrels
equivalent per day. Base case projections for 1998 indicate
growth of at least 18 percent in both production and cash flow.
Production is forecast at 4,200 barrels equivalent per day. These
projections do not include incremental production from the
development drilling at Bienfait, nor any 1998 exploratory
success.
An active drilling program is planned for 1998, both in Alberta
and southeastern Saskatchewan. Numerous Red River opportunities
are being explored, subsequent to the 1997 drilling successes at
Clarilaw and Kingsford. Four 3-D seismic shoots are currently
under way, two of which are being jointly conducted by Berkley
Petroleum Corporation on land offsetting their recently-announced
Red River discovery well, which was reported to have tested at
4,200 barrels per day.
Richard Todd, President and Chief Executive Officer of Richland
applauded the new production growth, saying "We are pleased to see
production growth return to Richland. We are confident that our
base case 1998 production forecast of 4,200 barrels per day, which
represents growth of 18 percent over 1997, is realistic and
conservative, as year-end 1997 exit rates should exceed that
level. With these new production volumes, Richland has replaced
its 1998 production declines, even before the year begins. With
additional production anticipated from a successful drilling
program on the newly-acquired Bienfait lands, 1998 is looking like
it will be a very good year for Richland!"
Richland Petroleum Corporation is a public company involved in the
exploration and development of crude oil and natural gas in
western Canada and the United States. Its shares trade on the
Alberta and Toronto Stock Exchanges under the symbol "RLP.A". |
