FIELD ACTIVITIES / Intercap Resource Management updates Operations
HOUSTON, Feb. 12 /CNW/ - INTERCAP RESOURCE MANAGEMENT CORPORATION
Vancouver Stock Exchange Trading Symbol: ''IRC''
Intercap Resource Management Corp. (Vancouver: IRC) reports today that
gross production from the East Shabwa Development Block in Yemen, for the
month of January was approximately 524,000 barrels of oil. Production
commenced in December and has increased to nearly 20,000 barrels of oil per
day from six wells.
Intercap through its 41.25% shareholding in COMECO Petroleum, Inc. owns
an indirect 11.78% interest in East Shabwa. Upon obtaining funding, Intercap
intends to acquire an additional 8.75% interest in COMECO for U.S. $4.4
million increasing its indirect interest in East Shabwa to 14.28% The other
majority shareholder is COMECO, SOCO International plc. is also acquiring an
additional 8.75% interest such that both Intercap and SOCO will hold a 50%
interest in COMECO. The acquisition of the additional interest by Intercap is
subject to funding and regulatory approval.
Jim D. Ford, Intercap's Chairman and President said ''Based on better
than anticipated production performance and the existence of numerous high
quality exploration opportunities on the 948 square kilometer (1.9 million
acre) East Shabwa Block, we believe increasing our interest is very
attractive.''
''1998 plans at East Shabwa include two development wells which are
underway and upon completion should result in an increase in production before
mid-year. In addition, a 178 kilometer seismic program is planned for this
year and geological and engineering studies will continue on the three
existing fields for the refinement of phase II of the development plan,''
stated Ford.
The other interest owners in the East Shabwa Development Area are Total
Yemen, the operator, with 28.57%, Unical Yemen Limited with 28.57% and Kuwait
Foreign Petroleum Exploration Co. with 14.29%.
Intercap Resource Management Corp. is an independent oil and gas
exploration and production company with offices in Houston and Vancouver.
Intercap's common stock trades on the Vancouver Exchange under the symbol
''IRC''.
On behalf of the Board
INTERCAP RESOURCE MANAGEMENT CORPORATION
G.W. Norman Wareham
Secretary/Treasurer |
