PROPERTY ACQUISITIONS / Sawtooth International
SAWTOOTH INTERNATIONAL RESOURCES INC. COMPLETES SPIRIT RIVER ACQUISITION
CALGARY, May 28 /CNW/ - SAWTOOTH INTERNATIONAL RESOURCES INC. has
completed a $1,621,000 acquisition of 120 BOED of Light Crude in the Spirit
River Area of North Western Alberta effective April 1, 1998.
The Company will use its current Line of Credit with the Alberta Treasury
Branches to finance this property acquisition.
This acquisition increases current daily production by 220% to 175 BOED
from 55 BOPD. With this acquisition the Company also has acquired a net 32%
working interest in an additional 1280 acres of Petroleum and Natural Gas
rights and access to two (2) shut-in gas wells which are being evaluated for
tie-in. In addition, Sawtooth has seasonal production from the Lessard
13-25-123-18 W5M horizontal Keg River oil well.
Through this acquisition, reserves of 297,210 BOE were added to bring
total company reserves, as of May 1, 1998, to 785,100 BOE. The Net Present
Value of the reserves added, at a discount rate of 10% is $2,578,500 for a
company total of $6,150,000.
Sawtooth continues to expand its Asset base while concentrating its
search for prolific gas and light oil reserves on shallow to medium depth
multi-zone Targets in established hydrocarbon environments.
Sawtooth International Resources Inc. is a publicly traded Canadian oil
and gas exploration and production company listed on the Alberta Stock
Exchange under symbol (''SAW'').
The Alberta Stock Exchange has neither approved nor disapproved of the
information contained herein.
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For further information: Gary Waters, President or Terry Morey, Vice
President Land, (403) 263-5800, Fax: (403) 234-7597
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