FIELD ACTIVITIES / Dundee Petroleum at Cessford
DUNDEE ANNOUNCES CESSFORD NATURAL GAS FARMIN
CALGARY, June 11 /CNW/ - Dundee Petroleum Corp. reports that it has
reached an agreement to farmin and participate in the drilling of 36 shallow
gas wells in the Cessford area of southeastern Alberta. Under the farmin
arrangement, Dundee will be responsible for approximately 30% of the costs of
the wells, which will be drilled for production from the Milk River and
Medicine Hat formations. In exchange, Dundee will earn a 30% working interest
in the wells and associated lands subject to a non-convertible gross
overriding royalty. Dundee's share of the drilling and completion costs for
the program is estimated to be $850,000.
Depending on the success of the drilling program, the Company estimates
there to be a minimum of 36 additional drilling locations on the lands to be
earned. Dundee estimates the initial 36 wells will be placed on production in
October of this year.
The Alberta Stock Exchange has neither approved nor disapproved of this
release.
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For further information: Michael J. Kryczka, President, or Hugh M.
Thomson, Vice-President, Finance, (403) 233-2969
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