FIELD ACTIVITIES / PanCanadian and Avalanche
AVALANCHE ENTERS MULTI-WELL DEVELOPMENT AGREEMENT WITH PANCANADIAN
CALGARY, May 25 /CNW/ - Avalanche Energy Limited (Avalanche) announced
today that it has entered into a multi-well gas development agreement with
PanCanadian Petroleum Limited (''PanCanadian'') in the Entice area located 40
kilometres northeast of Calgary.
The agreement allows Avalanche the opportunity to earn rights in up to
138 sections of contiguous acreage by completing numerous existing wells and
drilling a significant number of development wells.
Larry Evans, Avalanche President and Chief Executive Officer said, ''With
Avalanche's Bearpaw and Belly River Formation expertise and access to 90,000
acres (35,880 hectares) of undeveloped land, this is an ideal opportunity to
accelerate Avalanche's growth.''
Avalanche is a distributing non-listed company founded in December 1997,
which raised more than $10,000,000 via private placements. The company has
successfully drilled 6 (5.2 net) oil wells to date resulting in 250 bopd of
net production and has a further 20 development oil wells identified for the
remainder of 1998. Avalanche plans to complete/drill in excess of 40 gas
wells including the Entice project, in 1998. In addition to an aggressive
drilling program, Avalanche is also exploring a number of corporate and
property acquisition opportunities.
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For further information: Larry G. Evans, President and Chief Executive
Officer, Avalanche Energy Limited, (403) 781-2480, Fax: (403) 237-0471; Alan
Boras, Corporate Communications, PanCanadian Petroleum Limited, (403)
716-4040
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