Turner Valley update
Stampede Oils Inc STF
Shares issued 37,254,066 Mar 20 close $0.29
Mon 23 Mar 98 Company Review
An anonymous director reviews the company
Turner Valley, Southwestern Alberta
Gas - Devonian Crossfield Member
35,606 acres of P&NG leases in total Turner Valley prospect area
The company and its partners have recently acquired a three-month extension
to June 21 by which to commence a deepening drilling operation of the
Turner Valley No. 5 well to test and evaluate the underlying Devonian
Crossfield member of the Wabamun formation at a depth of approximately
12,000 feet. In excess of 150 feet of commercial Crossfield net gas
reservoir is expected to be encountered in this well bore, approximately
260 feet higher structurally than in the offset Turner Valley No. 4 well
approximately 1-3/4 miles southwest of the No. 5 well. The No. 4 offset
well, though it has not been tested yet, is indicated by logs to have 50
feet of gas pay in the top of the Crossfield and will be production tested
subsequent to the deepening and testing operation of the No. 5 well. The
current depth of the No. 5 well is approximately 10,000 feet and is cased
into the top of the Regional Turner Valley formation. The deepending
operation is expected to take four weeks from commencement of drilling.
Two followup development wells to the 4-13 Crossfield gas discovery well
are to be drilled this year, after which a major gas transmission line will
be constructed eastward to the Mazeppa gas plant. Gas from the Turner
Valley South pool should commence production in early 1999, and gas
encountered with the deepening of the No. 5 well and the No. 4 production
test, should be in production by mid-1999. Gas production from these
Devonian Crossfield wells should be in the 5-10 mmcf/d range for each well.
A followup, multi-well drilling program will be started.
Oil/Gas, Regional Turner Valley Formation
35,505 acres of P&NG leases in total Turner Valley prospect area
Operations of the two test wells, BPC et al Turner Valley 12-35-20-3 W5M
and IMP Berkley Turner Valley 2-21-21-3 W5M, are currently continuing.
Because of the availability of Crown P&NG leases in the immediate area and
confidentiality provisions of the respective operating agreements, the
company is not in a position to divulge any related information at this
time.
Other
Stampede, as operator, has completed a new pool discovery Basal Quartz oil
well in the Kavanaugh East area of central Alberta. This well was brought
in this past weekend and is capable of approximately 50 barrels of oil per
day. It is expected to produce up to 100 barrels of oil per day after well
bore cleanup.
No water recovery was encountered and the well is to be placed on
production immediately. Followup drilling will commence upon rig
availability. It is intended to have a minimum of six more wells drilled on
this prospect this year.
This new pool is indicated to have potential for 12-16 locations (quarter
section spacing) with recoverable oil reserves of approximately 250,000
barrels per well and the pool in total should contain up to four million
barrels of recoverable oil.
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