PROPERTY DISPOSITION / Kroes Energy Sells Eureka Field
Interests
KROES ENERGY INC. - SALE OF EUREKA FIELD INTERESTS
1998-03-30
CALGARY, ALBERTA
Kroes Energy Inc. announced today that effective January 1, 1998 it has sold
its interests in the Eureka field in eastern Saskatchewan to a private
company operating in that province. Total proceeds from the sale, which
closed on March 24, 1998, amount to $136,800. The Company retains its
interests in the nearby Druid and Whiteside fields where its share of
production in 1997 averaged 53 barrels of oil equivalent per day.
Kroes completed a Rights Offering early in February, 1998 that raised
$303,774 from the issue of 1,518,870 shares, bringing the total shares
outstanding to 8,649,442. The funds from the Rights Offering and the sale of
reserves will be used to proceed with the farmin project on the Icacos Block
in Trinidad.
The first earning well on the Icacos block reached total depth early in
January, 1998 and was suspended after encountering water and low oil
saturation in an upthrown fault block. The Company and its partners are
presently reviewing technical data and assessing the need for seismic data to
determine the location of the next well. This also would provide information
necessary to come to a decision on the feasibility of deviating the suspended
well into the productive Cruse sands that are-present in a nearby producing
well.
With respect to Blocks V, VI and VII offshore Cuba where Kroes has a 4.875%
carried interest, a gravity survey is nearing completion and following
interpretation of the results, a location will be selected for drilling in
1998. |
