FIELD ACTIVITIES / Maxwell Oil & Gas Announces Completion Results,
Acquisition
ASE, VSE SYMBOL: MWL
MARCH 12, 1998
CALGARY, ALBERTA--The Board of Directors of Maxwell Oil & Gas Ltd.
wish to advise that the Company has now completed and production
tested its latest two gas wells in the Blue Rapids area of
Alberta, and has also completed preliminary swabbing operations at
its horizontal well at Wabamun Lake, Alberta.
At Blue Rapids, well 7-28 (Maxwell working interest = 33.75
percent) flowed at a gross restricted gas rate of 2,030 mcfd and
50 bpd liquids, while well 4-29 (Maxwell working interest = 18.21
percent) flowed at a gross restricted rate of 6,150 mcfd and 155
bpd of liquids, with an estimated maximum deliverability of 9,000
mcfd and 225 bpd liquids. Tie-in of both wells is currently
ongoing and will add more than 200 barrels of oil equivalent per
day ("boepd") net to Maxwell's production base. Two additional
locations are scheduled for drilling later in the year.
At Wabamun Lake, Alberta, the Company has now completed swabbing
operations at its 4-5 horizontal well (Maxwell working interest =
50 percent). During a three day period beginning February 23,
1998, a total of 75 swabs were pulled over 27 hours of
non-continuous operations, yielding 54 m3 (340 barrels) of total
fluid, at oil cuts increasing to 65 percent oil. A subsequent
nitrified water clean-up treatment conducted in early March
resulted in an increase in oil cuts to 90 percent oil, with no
improvement to fluid productivity. The Company is currently
evaluating various acid stimulation treatments as a means of
further enhancing productivity from the well. In addition, the
Company has made application to the Alberta Energy Utilities Board
regarding a change in well spacing in Section 5 that would permit
the additional drilling of up to 3 wells, pending regulatory
approval and satisfactory performance from the 4-5 well.
In other news, Maxwell has sold a single well in its Blue Rapids
area for a cash consideration of $1.0 million and more favorable
terms related to the processing of its remaining gas from the
area. Cash proceeds will be utilized in the partial funding of an
April, 1998 acquisition that will return operatorship to Maxwell
in its core area of Mitsue, Alberta. The disposition and
subsequent acquisition are production neutral to the Company. |
