FIELD ACTIVITIES / Cabre Exploration to Explore PanCanadian Lands
TSE SYMBOL: CBE
MAY 14, 1998
CALGARY, ALBERTA--Cabre Exploration Ltd. has negotiated an
agreement to explore 160 sections of land owned by PanCanadian
Petroleum Limited and located near Cabre's core production
properties at Joarcam in central Alberta.
"This agreement offers Cabre an excellent opportunity to pursue
new exploration and reserves in a region we know well and located
near our largest single producing property," said Douglas Kay,
Cabre's president and chief operating officer.
Under this agreement, Cabre has agreed to drill at least five
exploration wells on selected locations before October 31, 1998.
This agreement also includes three option periods between October
31, 1998 and December 31, 1999. To earn interest during each of
these periods, Cabre has agreed to drill at least five wells
during each period on selected lands. Cabre may also drill more
than the minimum five earning wells in any period to earn
additional lands. Cabre has also negotiated the right to purchase
PanCanadian seismic data covering 539 kilometres of the lands.
PanCanadian retains its royalties from any new production and will
earn a working interest in new oil discoveries.
Cabre is the majority owner and Operator of Joarcam Viking Oil
Units 2 and 3 as well as the Joarcam Viking Gas Cap Unit,
including associated gas plants and oil processing facilities.
Cabre is currently producing 2,400 barrels of oil and 7.4 million
cubic feet of gas per day net to its interests from its Joarcam
properties, located about 50 kilometres southeast of Edmonton.
Over the last year, Cabre has also conducted an exploration
program focusing on natural gas outside of its Joarcam lands.
This agreement fits well with Cabre's exploration strategy of
pursuing new reserves near its core areas of production.
|
