Pan-Global news release on properties.
Details of recent acquisitions and exploration results
Pan-Global Enterprises Inc PGE
Shares issued 9,440,646 Jun 22 close $0.60
Tue 23 Jun 98 News Release
Mr. Arn Schoch reports
Further to news in Stockwatch June 18, 1998 the company would like to
provide detailed information regarding recently acquired prospects and an
update on domestic developments.
Acquired International Prospects
Tunisia/Bazma
Pan-Global has an option to purchase a 40 per cent interest from a third
party in the Bazma prospect, resulting in a 6 per cent WI.
The Bazma permit comprises an area of approximately 500,000 acres in
central Tunisia. Three pipelines with available capacity run along the
eastern boundary of the permit, carrying oil and gas to the terminals on
the Gulf of Gabes, approximately 75km to the northeast.
The initial well, Bazma 1 commenced drilling operations on April 1, 1998
and is expected to reach total depth by mid-July 1998. Eurogas is the
operator of the well and Mobil Oil has farmed-in on a promoted basis (pay
53 per cent to earn 40 per cent). Encouraging results at this location
could lead to three additional prospects of similar size and potential in
this area.
Yemen/Block 43
Block No. 43 is immediately to the south and east of the Canadian
Occidental Masilla block No. 14 where it is currently producing
approximately 200,000 bopd and has suggested reserves close to one billion
barrels of recoverable oil. The Canadian Occidental export pipeline runs
through the southwest portion of this block.
There is 1500km of seismic in place; the operator is reviewing the existing
data and has identified several preliminary leads for exploratory wells.
Plans include a high-resolution gravity and magnetic survey to help refine
these leads and then acquire 3-D seismic over the most promising leads.
Plans to drill these wells will be based on the timing of 3-D survey
results. The most likely scenario is the first quarter of 1999.
The Masilla block has identified 13 separate oilfields, ranging from
approximately five million barrels of recoverable oil to over 200 mmbo. The
geology of the Masilla block carries into block No. 43 and some of the
wells have indicated oil shows. Pan-Global has a 16 per cent WI in this
project.
West Texas/South Fort Stockton
Pan-Global has purchased a 6.67 per cent WI BPO and a 5 per cent APO in
this project. To date, two prospects have been identified by 3-D seismic
interpretation. The project area is approximately 5,280 acres, midway
between the Gomez field to the northwest (cumulative production to date 4.7
tcf gas) and the Puckett field to the southeast (cumulative production to
date 3.8 tcf gas).
The prospects are interpreted by First Calgary Petroleums management to be
similar in size and geological setting to the McComb field immediately to
the north (cumulative production to date 70 bcf). The well was spudded in
February 1998 and is currently at 18,000 feet. The final total depth will
be 26,000 feet; October 1998 is when the company expects results.
Louisiana/South Lakeside, Cameron Parish
The South Lakeside Prospect comprises an area of approximately 3,000 acres
in southwest Louisiana in Cameron Parish, 17 miles southwest of the town of
Lake Arthur, 16 miles north of the Gulf of Mexico coast on the south shore
of Lake Misere.
The initial well was drilled, cased and suspended in 1997 at total cost of
$9.2-million (U.S.). The first well was drilled on a loose grid of 2-D
seismic, subsequent to the suspension; a regional 3-D seismic program was
obtained and interpreted which confirmed the extent of the fault trace and
two adjacent prospective fault bocks. The second well will kick off from
the cased portion of the first well, drill laterally approximately 800
feet, then vertically into the Myogypsinoid sands.
Re-entering the second well started on June 13, 1998 and is expected to be
a 30 day program. The reserve potential may be up to 750 bcf of gas.
Adjacent fields have produced 500 bcf to 1.5 tcf of gas. Pan-Global has a
net 5 per cent WI in this project.
Domestic Developments
Long Coulee-Alberta
During the fourth quarter of 1997, Pan-Global participated in the drilling
of two wells that resulted in a new pool gas discovery and a development
well. The company has an 18 per cent BPO and 16 per cent APO for the first
two wells. The new pool discovery gas well is at 14-7-18-22 W4M and the
development well at 14-11-18-23 W4M; production tests indicated a combined
rate of production of 3,000 mcf/d of sweet gas and some liquids. The wells
have been tied-in and production will begin in July 1998. Pan-Global has
participated and currently evaluating one additional well at 12-6-18-22
W4M. The company has 22 per cent BPO and 21.33% APO in this well.
Long Coulee North-Alberta
Pan-Global has an AMI in 20 sections covering 12,800 acres, which is
adjacent to its successful properties to the south. The company has
identified several drillable locations based on interpretation of seismic
covering over 70 miles. Pan-Global is currently drilling at W4M, paying 40
per cent of costs to earn 28 per cent BPO and 28 per cent APO.
Kirk Lake-Alberta
Pan-Global purchased a 50 per cent working interest in an Alberta Crown
lease at a land sale in November of 1997. The company believes that this is
a good candidate to farm-out during 1998 or to participate in the drilling
of this moderate drill depth, relatively low risk well.
Cereal-Alberta
Pan-Global has a 20 per cent WI in two sections of pooled lands and a 20
per cent interest in an AMI. The company plans to purchase seismic and
reprocess to optimize a drillable location in 1998. This project is a low
risk candidate based on geologic/geophysical control.
Sturgeon Lake-Alberta
During the fourth quarter of 1997, Pan-Global purchased an option to
participate in the exploration and development of D-2 (Nisku) and D-3
(Leduc) prospects. Suncor has farmed-in and pooled its interests in the
area where Range Petroleum is the operator. Additional sections of land
have also been purchased, two sections in block A and one section in block
B. Pan-Global can elect to exercise its option as to a 1.5 per cent WI on
block A after the well has been drilled or 2 per cent WI in block B after
issuance of a drilling A.F.E. Sturgeon Lake prospects are of enormous size
and may have millions of barrels of recoverable oil.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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