FIELD ACTIVITIES / Red Sea Oil Announces 1998 Drilling and Seismic
Program on Block NC177, Onshore Libya
ASE SYMBOL: RSO
JUNE 1, 1998
VANCOUVER, BRITISH COLUMBIA--Red Sea Oil Corporation ("RSO") is
pleased to announce that its 1998 drilling program is due to
commence mid-July and will consist of two appraisal wells and the
re-entry of an existing well on Block NC177, onshore Libya, and
will require two drilling rigs in full operation.
The well to be re-entered and tested is known as JI-85 and was
originally drilled in 1968 by Ausonia. It is located 3 kilometres
from RSO's En Naga North discovery in a separate structure. The
J1-85 well has the potential to prove up substantial additional
reserves for the En Naga North Field. Over 85 feet of gross pay
in J1-85 have been identified within the Gir/Facha reservoir
formation following detailed log analysis and correlates very well
with the Gir/Facha reservoir at the En Naga North discovery.
The drilling of the 2 appraisal wells is designed to fully
delineate the En Naga North structure. The four-way dip closure
at the Lower Gir and Zelten formations indicate that these
formations could extend significantly to the North, providing
further reserve upside. Also, deeper untested targets exist in
the Lower Cretaceous and Basal Sands formations.
In addition, numerous leads have been identified in other untested
areas of the block and a 1,600 kilometre regional 2D program will
commence shortly to firm up these leads. Exploration drilling
will resume in early 1999.
Recently, RSO appointed Mr. Ashley Heppenstall as Chief Financial
Officer of the Company. Mr. Heppenstall has extensive experience
in corporate finance and project financing matters as well as
financial feasibility analysis of projects, particularly for
natural resource companies. Mr. Heppenstall is a graduate of
Hatfield College, Durham University in England.
RSO has determined to change its fiscal year end from September 30
to December 31 and is in the process of making application to
regulatory authorities for approval.
RSO is the Operator of Block NC177 and has a 60 percent interest.
The remaining interest is held by Lundin Oil AB which also
controls 61 percent of RSO.
Note: Location map available from the Company at the phone number
listed below.
ON BEHALF OF THE BOARD
Ian H. Lundin President
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