FIELD ACTIVITIES / ESker Resources Ltd. updates Results
The company wishes to announce that the Petromet et al WildR 2-2-57-24 W5 gas
well in which Esker has a 10% working interest, went on production March 9,
1998. Dry sweet gas is flowing into the gathering system at a restricted
rate of 7.7 MMcf per day. The Leduc reef zone was acidized and flow tested
on March 8, 1998 at rates up to 14 MMcf per day. Esker has a gas contract
with Aquila Canada Corp. to purchase the gas and will have a processing and
transportation agreement with Petromet Resources Limited, to handle the gas
at the Petromet Wildhay River gas plant located 4.5 miles southeast of the
well. A second well, in which Esker will have a 10% working interest, is
expected to be drilled on our earned acreage in the fall of 1998.
At Cherry, our operated oil well has been on production for one month and is
producing water free oil at an average restricted rate of 189 bopd. Esker
has a 50% working interest in this well and has started shooting a 3D seismic
program in the area.
Esker's year end independent engineering report (including the Wild River and
Cherry wells) has been completed and the results follow. The following table
outlines a comparison of the Company's reserves (before royalties) effective
January 1, 1997 and January 1, 1998, using an escalated pricing forecast:
Reserve Gas Oil & NGL BOE Annual 10% DCV
Category (MMcf) (MBbls.) (MBbls.) Change M$
(over
previous
year)
1997 Proven 4,505 167 618 +21%
Probable 126 207 219
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TOTAL 4,631 374 837 +49%$ 5,966
1998 Proven 4,564 330 786 +27%
Probable 1,032 1,690 1,793
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TOTAL 5,596 2,020 2,579 +208% $14,744
The Company's production rate is currently at 277 BOE per day, a 151% incre
ase over the 1997 exit rate. The audited financial results for 1997 will b
e available by the end of March, 1998.Esker Resources Ltd. trades on The Al
berta Stock Exchange (Trading symbol - "ESR") and its telephone number is (
403) 269-2367 and fax (403) 294-0287. Mr. Ian G. Holmes (President) may be
contacted for clarification of any of this information. |
