FIELD ACTIVITIES / Loon Announces Strachan Well Information
ASE SYMBOL: LEY
APRIL 17, 1998
CALGARY, ALBERTA--Loon Energy Inc. advises that the Strachan
03-22-38-09 W5M well is currently drilling at a depth of 4126
metres (4,022 metres TVD) in the Duvernay Formation. The Leduc
Formation (D-3), a primary objective, was not encountered in the
well.
Loon reported on March 27 that 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. Intermediate casing was set at
3,420 metres. A determination of production capability and
reserve volumes for any of the uphole zones will not occur until
production testing takes place after the well reaches total depth.
Drilling will continue to a total projected depth of 4,479 metres
measured depth (4,256 metres true vertical depth). Potential
targets below the current drilling depth are the Swan Hills,
Beaverhill Lake and Keg River Formations. Total depth is expected
to be reached in approximately 10 days (April 27).
Loon is participating in the Strachan well for 10 percent of the
well costs to earn a 10 percent interest before payout and a 5
percent working interest after payout.
Loon recently announced (April 13) that it will acquire an average
21.5 percent working interest in a southern Alberta oil pool in
the Grand Forks area. Loon's net production from the pool will be
approximately 70 bopd.
Loon has acquired a 33 percent working interest in 640 acres of
land at Carvel offsetting a gas discovery which tested gas at 8
MMcfd. Drilling of this prospect is expected within the next 3
months. |
