FIELD ACTIVITIES / TransDominion Energy Turkey Drilling Update
TRANS-DOMINION ENERGY CORPORATION
TSE SYMBOL: TDE
JANUARY 7, 1998
Trans-Dominion - Zeynel-9 Well, S.E. Turkey, Tests 1488
BOPD; 7 - 8 Exploration and Development Wells to be
Drilled in 1998
CALGARY, ALBERTA--Trans-Dominion Energy Corporation announces that
the Zeynel-9 well has tested at a rate of 1488 bopd. The Operator
advises that the well will be produced at a choked-back rate of
700 bopd and that the drilling of the Zeynel-10 well will commence
in the first quarter. TDE has a 12.5 percent Gross Overriding
Royalty on Production Lease 3170, which contains the Zeynel field.
"The continued success in the Zeynel Oilfield provides TDE with
net cash flow from royalties in excess of $300,000/month, based on
current oil prices and favorable exchange rates," said Michael J.
Doherty, President and CEO of TDE, "The geological conditions
present in S. E. Turkey, combined with the existence of
significant producing oilfields, lead us to believe that further
large oil reserves will be discovered in the region. We are
planning an extensive exploration program for 1998."
TDE TO PARTICIPATE IN EXPLORATION PROGRAM TO DISCOVER LARGE
RESERVES IN THE SOUTH MARDIN AREA
In the South Mardin area, TDE has a 50 percent working interest in
over 600,000 acres. Negotiations are ongoing with substantial oil
companies that could result in a large seismic program in 1998
followed by drilling. In addition, TDE has joined with a large US
Independent to propose an exploration program over a further
1,000,000 acres in the area. Combined, this acreage covers the
area between the Mardin High and the Syrian Border, which is
believed to contain a large Silurian basin similar to those found
in Saudi Arabia. As this area is much less disturbed than that
north of the Mardin High, it is likely, that if oil is present, it
will be trapped by large structures in the Devonian and Ordovician
sandstone formations.
5 - 6 WELLS PLANNED FOR THE ZEYNEL PRODUCTION LEASE AREA
2 EXPLORATION WELLS PLANNED FOR 1998
In the Gaziantep District of S.E. Turkey, TDE is participating
with working interests ranging from 30 percent to 100 percent in
eight exploration licenses covering over 900,000 acres as well as
holding a 12.5 percent royalty in the Zeynel Production Lease.
During 1998, TDE anticipates that new seismic will be acquired
over several of the license areas and that at least two
exploration wells will be drilled in the exploration licenses and
up to five wells in the Production Lease. Some of the wells on
the Lease will be drilled on new prospects, which lie close to the
Zeynel Field.
BALABAN-1 WELL PROVIDED VALUABLE INFORMATION BUT DID NOT FLOW AT A
COMMERCIAL RATE
During 1997, TDE participated in the drilling of the Balaban-1
well, which encountered oil shows throughout the prospective
Cretaceous section, but failed to deliver flow rates which were
commercial. However, the well has provided the partners with a
considerable amount of very important technical information, which
will be integrated into this year's exploration program.
TDE TO BE CARRIED THROUGH US$350,000 SEISMIC PROGRAM
NEW ACREAGE BEING ACQUIRED IN GAS PRONE THRACE AREA
In the gas-prone Thrace area of Western Turkey, TDE has completed
a farm-out, subject to government approval, which will result in
TDE being carried through the first US$350,000 of the cost of a
seismic program being planned for the second quarter. In order to
increase its activities in the area, TDE recently sold its 25
percent stake in Thrace Basin Natural Gas (Turkey) Corporation and
has independently applied for two new licenses. Upon completion
of the farm-out and if the new licenses are obtained, TDE will
have interests ranging from 47.5 percent to 50 percent in over
600,000 acres in the Thrace area.
Through a combination of cash flow from operations, cash on hand
and farm-out agreements, TDE expects to be able to fund its
currently planned 1998 activities without further equity
financing. |
