FIELD ACTIVITIES / Diaz Announces the Commencement of Drilling
Operations in Louisiana
VSE SYMBOL: DZR.A DZR.B
NASDAQ SYMBOL: DZRUF
JUNE 16, 1998
CALGARY, ALBERTA--Diaz Resources Ltd. announces that drilling
operations have begun on the No. 1 Miami Corporation well in
section 22, T13S-R5W, Cameron Parish, Louisiana, on its South
Lakeside prospect. The South Lakeside prospect is an exploratory
natural gas and condensate drilling project with a primary
objective of the Miogypsonoide (MioGyp) gas charged sands at an
approximate depth of 17,350 feet. Diaz will be carried through
the cost of the re-entry and completion of the well and will have
a 5.75 percent working interest thereafter in the 2,313 acre
prospect.
The South Lakeside prospect involves re-entering the No. 1 Miami
well drilled by CMS-Nomeco to a depth of 17,490 feet in 1997. The
original objective of the well was a large reserve target in the
MioGyp sands based upon 2D seismic and a down-dip well drilled by
Arco 2.4 miles to the west in section 30, T13S-R5W, which had
several hundred feet of MioGyp sands with gas shows. The No. 1
Miami well encountered strong gas shows at the MioGyp target depth
and is interpreted to have drilling into the up-dip edge of the
reservoir. Operations commenced on June 10th to re-enter the well
and to drill a side track out from existing casing at 13,450 feet
to intersect the MioGyp reservoir target at a structurally
down-dip position to the west of the original wellbore. Drilling
operations reported presently to be at a depth of 7,000 feet. The
operation is expected to take 40-60 days.
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