FIELD ACTIVITIES / First Star Energy Announces Exploration
Update
ASE SYMBOL: FST
APRIL 17, 1998
CALGARY, ALBERTA--First Star Energy Ltd. ("First Star") advises
that the Strachan 3-22-8-39W5M well is currently drilling at a
depth of 4,126 meters (4,022 meters TVD) in the Duvernay
Formation. The Leduc Formation (D-3), a primary objective, was
not encountered in the well. (First Star 20 percent BPO, 25
percent APO).
First Star reported on March 27 that potential hydrocarbons were
indicated in the Cardium, Ostracod, Basal Quartz and Elkton
(Mississippian) Formations based upon increased rates of
penetration, gas and/or oil shows during drilling and log
analysis. The information indicates a potential gas well. A
determination of production capability and reserves volumes for
any of the uphole zones will not occur until production testing
takes place after the well reaches total depth.
The drilling is continuing to a total projected depth of 4,479
meters measured depth (4256 meters TVD). Potential targets below
the current drilling depth include the Swan Hills, Beaverhill Lake
and Keg River Formations. Total depth is expected to be reached
in approximately 10 days (April 27).
First Star also announces that it has acquired a 100 percent
interest in 2 sections (1280 acres) in the Caroline, Alberta area
at the March 18, 1998 Crown Land Sale, immediately adjacent to a 3
section license that sold for $2.66 million. In North Eastern
British Columbia, First Star has entered in to a seismic option on
three sections on a Triassic play, with the right to drill after
review and interpretation of that seismic.
In Kentucky, for the Ballard Ray #1 (First Star 27.5 percent), the
pipeline has been laid and production facilities installed. The
gas well should be on production in three weeks at approximately
750 mcf per day and a gas price of US$2.45. |
