MERGERS-ACQUISITIONS / Panatlas Updates Activities And Announces
Panatlas And Pointer
TSE SYMBOL: PA
FEBRUARY 25, 1998
CALGARY, ALBERTA--Pointer Exploration Corp. ("Pointer") became a
wholly owned subsidiary of PanAtlas Energy Inc. ("PanAtlas") on
November 26, 1997. PanAtlas advises the amalgamation of the two
companies was completed on January 1, 1998. The amalgamated
company will carry on business as PanAtlas Energy Inc.
Paddock Lindstrom and Associates Ltd. have completed an updated
engineering report on the amalgamated company effective December
31, 1997. In their opinion PanAtlas has total proven and probable
reserves of 7.2 million barrels of oil equivalent valued at $51.9
million using a 10 percent discount factor. Sixty-nine percent of
the reserves were classified as proven and 28 percent were natural
gas.
Combined production in December 1997 for PanAtlas and Pointer was
approximately 2,150 Boepd, consisting of 1,272 Bopd and 8.78
MMcf/d of natural gas. In addition to the overall production
increases provided by consolidating operations, additional natural
gas production was added at Craigmyle and Byemoor.
An active development program since September 30, 1997 has
resulted in the drilling of 6 (2.17 net) natural gas wells and 6
(2.72 net) oil wells and no abandonments. Five (1.45 net)
exploratory wells will be drilled in the first quarter of 1998.
Included are two new pool exploratory tests in Saskatchewan with
one testing a Red River Formation 3D seismic anomaly and the other
evaluating a Mississippian 3D seismic prospect. The remaining
three wells are located in Alberta at Byemoor, Cygnet and Pine
Creek. Drilling rigs have been secured for all five projects with
three operated by PanAtlas and two by partners. One exploratory
well has been drilled and cased at Byemoor as a potential gas well
following a 2 MMcf/d drillstem test. The Saskatchewan
Mississippian prospect has been drilled and cased as a potential
new pool Mississippian discovery. The Red River test, Founders
PanAtlas Minard 14-6-6-6 W2M, is drilling.
A directional well is currently being drilled under farmout into
Exploration Licence EL 1008 in West Newfoundland. PanAtlas is a
principal shareholder (approximately 15.7 percent) in Vinland
Resources Inc. a private company which will have a 55 percent
interest in the project following completion of $1.0 million in
earning obligations by the farmee. Other exploration commitments
on 100 percent Vinland permits in the Deer Lake Basin are in
progress. The farmee will earn a 25 percent working interest
following completion of new seismic and the drilling of two
exploratory wells.
The strategic business initiatives implemented in 1997 have
positioned PanAtlas for continued growth in production and cash
flow in 1998. Our 1998 base capital budget of $13 million will
result in the drilling of up to 40 (16 net) wells on an expanded
inventory of exploration and development projects.
PanAtlas is a public oil and gas company based in Calgary with
49.6 million shares outstanding that trade on The Toronto Stock
Exchange under the Symbol "PA". |
