FIELD ACTIVITES / Probe Increases Capex Budget
NEW DISCOVERIES DRIVE EXPANSION OF PROBE'S CAPITAL BUDGET
CALGARY, May 27 /CNW/ - Probe Exploration Inc. (PRX-TSE) today announced
that it has finalized its plan to increase its planned 1998 Capital
Expenditure Program from $53 million to $70 million (excluding acquisitions)
to be funded by cash flow and debt.
Based on recent technical success primarily at Leduc, Probe now expects
to drill or recomplete a total of 211 gross (184 net) wells in 1998. Net
production additions are estimated at 14,000 BOE/d (risked) on top of a
current production level of 11,000 BOE/d. After factoring corporate
production declines estimated at 20% and additional risk, Probe management has
increased its year-end target from 15,000 to 17,500 BOE/d.
Probe has also initiated its 1999 budget and plans on drilling or
recompleting 117 gross (102 net) wells in the first half of 1999 at a net cost
of $35 million. Net (risked) production additions of approximately 7,000
BOE/d will drive Probe toward its 1999 exit target of 25,000 BOE/d.
Effective December 31, 1997, Probe's reserve base was estimated at 37
million BOE (proven plus 50% probable). Since January 1, 1998, management
estimates that approximately 25 million BOE of new reserves have been
identified primarily through new success at Leduc in the Wabamun and Sparky
formations. Further reserve estimates for these and other formations will be
conducted by independent engineers effective June 30, 1998.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
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For further information: Stephen P. Gibson, President or Barrie Wright,
Vice President, Probe Exploration Inc., (403) 233-2464, Fax: (403) 233-2486 |
