UPDATE / Velvet Exploration
VELVET EXPLORATION CO. LTD.
CALGARY, May 26 /CNW/ - Velvet Exploration Co. Ltd. (''the Company'') is
pleased to announce that, as at the close of business today, the name of the
Corporation will be changed to Velvet Exploration Ltd. and the Company will be
continued out of the jurisdiction of the Company Act (British Columbia) and
into the jurisdiction of the Business Corporations Act (Alberta).
Further, the Company is pleased to announce the following drilling
update:
<<
Drilling Results
Well Location Velvets Working Comments
Interest
-----------------------------------------------------------------------
No.11 5-11-44-24W4 80% Cased as potential Glauconitic
Gas Well
No.12 10-20-44-23W4 40% Velvet did not participate in
completion
No.13 2-33-44-23W4 57.5% The Ellerslie zone was drill
stem tested at 6.5 mmscf/d
No.14 10-8-44-24W4 57.5% The Ellerslie zone was drill
stem tested at 1.1 mmscf/d
>>
The Company has a further 17 locations to be drilled in 1998 and is on
target to exit 1998 with 31 total wells.
The Company has also received a receipt from the Alberta Securities
Commission for a prospectus qualifying common shares and warrants issueable on
the exercise of outstanding special warrants. The special warrants will be
deemed to be exercised on May 29, 1998 resulting in the issue of 3,025,000
common shares and 3,025,000 common share purchase warrants. The warrants are
exercisable into common shares at an exercise price of $3.55 per share until
the close of business on May 23, 1999.
Velvet Exploration Co. Ltd. is a Canadian energy company engaged in the
exploration, development and production of natural gas and crude oil. The
Company's common shares are listed on the Vancouver Stock Exchange under the
trading symbol ''VLV''.
VELVET EXPLORATION CO. LTD.
--------------------------
Ken S. Woolner, P.Eng.
President and C.E.O.
The Vancouver Stock Exchange assumes no responsibility for the accuracy
of this release and neither approves nor disapproves of the same.
-30-
For further information: Investor Relations Line, 1-888-689-5659 or in
Calgary at 265-0088
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