FIELD ACTIVITIES / Pan East Updates Activity in West Central Alberta
TSE SYMBOL: PEC
MAY 14, 1998
CALGARY, ALBERTA--In the Karr area, Pan East Petroleum Corp. ("Pan
East") commenced production from the 11-19-64-1W6M well on April
30th. The well produces from the Wabamum Formation at a raw gas
rate of 8 MMcf/d (7.1 percent acid gas) and 400 Bbls/d of
condensate and natural gas liquids at a flowing well head pressure
of 1,800 psi. Production is tied into the Simonette gas pipeline
and is processed at the Kaybob South # 3 (K-3) gas plant, in both
of which Pan East has direct ownership. Pan East owns a 90
percent working interest in the well, and sales gas and associated
products net to Pan East's interest, expressed in gas equivalence,
is 9.9 MMcfe/d.
The Company also plans to commence completion operations within
the next 30 days on the Pan East et al Karr 13-25-64-2W6 well that
is located approximately two miles from the 11-19 gas well. The
13-25 well was drilled to a total depth of 4,056 meters (13,304
feet) earlier in 1998. Pan East is the operator and owns a 66
percent interest before pay out and a 40 percent interest after
pay out in the well and 12,160 acres of surrounding lands.
At Nordegg, Pan East has reached total depth of 1,610 meters
(5,280 feet) in the Pan East et al Nordegg 12-9-41-17W5M well.
Production casing has been run and the well will be tested within
the next three weeks. Pan East is the operator and owns a 66.67
percent interest.
The Company is pleased to announce that recent production
additions from the Midwinter, Karr and Sunchild areas bring the
Company's current production to 40 MMcfe/d. Pan East's President
and C.E.O., Richard A. Walls, stated, "I am proud of my
operational staff for meeting all of our production targets
despite difficult weather conditions and numerous logistical
considerations".
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