FIELD ACTIVITIES /Golden Trend Petroleum Ltd. Drills Successful
Gas Well at Redwater and Files Prospectus Amendment
ASE SYMBOL: GTP.A
JANUARY 20, 1998
CALGARY, ALBERTA--Golden Trend Petroleum Ltd. reports it has
drilled another potential natural gas well in its core Redwater
area of central Alberta. The latest well, located at
7-18-58-21W4M, has been cased as a potential multi-zone gas well.
A drill stem test of one of the zones in this well recovered
natural gas in rates exceeding 900 mcf per day. Overall, the 7-18
well has gas pay in three separate zones. This well will be
completed and tied-in to the Company's compressor station as soon
as possible. When the 7-18 well is placed on production, Golden
Trend will own an interest in 10 producing wells in the Redwater
field. In addition, in the first quarter of 1998, the Company
will tie-in two shut-in wells and recomplete two wells to bring
the total number of producing gas wells to 14. Once this work has
been completed, the gross production from the field will be 6.0
mmcf/d (net 3.0 mmcf/d to Golden Trend). This is a 200 percent
increase in production from the field since Golden Trend acquired
the property in July 1997. All of the Company's Redwater gas
production is sold to PanAlberta Gas Ltd., and receives their
pooled market price. Golden Trend holds a 50 percent working
interest and is the operator of the Redwater gas field.
On January 16, 1998, Golden Trend filed an amendment to its
prospectus dated November 28, 1997, with respect to its current
issue of units. The amendment will reduce the minimum offering to
500,000 units and reduce the offering price of the units from
$1.10 per unit to $0.90 per unit and the warrant exercise price
from $1.35 to $1.00.
The Company's estimated production average of 555 boepd in 1997 is
a 200 percent increase over the 1996 average of 185 boepd. Golden
Trend continues to grow through core area acquisitions,
development drilling and optimization activity. In 1998, the
Company will continue those activities while adding an exploration
component, which will target at least four new prospects. |
