FIELD ACTIVITIES / High Point Energy Corp. announces the commencement of drilling of the Company's Dixonville/Worsley, Alberta D-3 Reef (Leduc) Test Well.
Stock Symbol: HPE.A
Stock Exchange: Alberta
June 16, 1998
Press Release
June 16, 1998
High Point Energy Corp., Dixonville D-3 Test Well
Calgary - High Point Energy Corp. (High Point) is pleased to announce the commencement of drilling of its D-3 Reef (Leduc) Test Well (the "Test Well") on the Company's controlled acreage block in the Dixonville Strategic Focus Area of northwestern Alberta. It is anticipated that the well will take approximately three weeks to drill to a Total Depth of over 2100 metres. The Operator and Partner have also negotiated the option to drill a second well (the "Option Well") on High Point lands within 120 days of rig release of the Test Well.
Wells in a similar geological environment which have produced or are currently producing from the D-3 (Leduc) reef located within 2 to 8 miles of the Test Well have produced natural gas at rates of 2.6 Mmcf/d to 15 Mmcf/d. Producable reserves from these wells range between 1 Bcf of natural gas with 150,000 Bbls of oil per section and 21 Bcf of natural gas per section. The primary target for the Test Well is the D-3 (Leduc) reef with secondary targets in the Bluesky, Gething , Worsley, Wabamun, and Nisku formation.
Pursuant to the Farmout Agreement negotiated by High Point, the Company will be carried through the drilling, equipping, testing and tie-in of the Test Well, retain a royalty interest through payout of the Test Well and a 19.167% working interest after payout. High Point will also be carried through the drilling, equipping, testing and tie-in of the Option Well (if drilled), retain a royalty interest through payout of the Option Well and a 20.127% working interest after payout.
Corporate
High Point Energy Corp. currently has 1,977,160 Class "A" Common Shares issued and outstanding. On a fully diluted basis High Point Energy Corp. will have issued and outstanding 4,062,160 Class "A" Common Shares and 1,040,568 Class "B" Shares.
For further information please contact:
Mr. Patrick J. Maguire or Mr. Raymond C. Maguire
Director's
High Point Energy Corp. .
(403)264-2487
The Alberta Stock Exchange has neither approved nor disapproved of the
information contained herein.
|
