FIELD ACTIVITIES / Pacalta Ecuador pipeline apportionment
PACALTA RESOURCES LTD. RECEIVES INCREASED PIPELINE ALLOWABLE
CALGARY, July 7 /CNW/ - Pacalta Resources Ltd.'s 100% owned Ecuadorian
subsidiary, City Investing Company Limited has received notice from the
Ecuadorian National Hydrocarbons Directorate that all allowables into the
SOTE/OTA export pipeline system have been re-apportioned. Effective July 7,
1998, the Company's allowable has been increased to 24,189 BOPD. While the
Company's production is still restricted, this increase reflects the inclusion
of the Dorine field in the national production base. However, this increase
does not include allowables for the two new pool discoveries announced in June
of this year, or the new Dorine 8 development well. In addition, the Company
is awaiting allowables for four new wells drilled on the Fanny 20 pad. As
allowables are set for these additional wells, the Company anticipates further
increases in SOTE/OTA pipeline allocation. The ultimate production from all
the Company's wells in Ecuador will be prorated to reflect the restricted
export capacity available on the SOTE/OTA pipeline system.
The total transportation capacity available in Ecuador has increased by
10,000 BOPD to 395,000 BOPD, which reflects additional capacity available from
the recent minor expansion of the SOTE pipeline. Based on the original design
parameters of this minor expansion, there may be potential to increase the
throughput by an additional 10,000 to 15,000 BOPD.
Exploration update
On City Block, testing operations have concluded at the Mariann 4A
discovery well. In addition to the two ''T'' sandstone zones, which tested at
a cumulative rate in excess of 3,600 BOPD of 31 degree API oil, the well has
been evaluated over three other productive intervals. The first of these
intervals, the Lower ''U'' sandstone, tested at a final rate of 272 BOPD of 19
degree API oil from a 5 foot perforated interval. The next zone, the Middle
''U'' sandstone, tested at a final rate of 1,434 BOPD of 26 degree API oil
from a 12 foot perforated interval. The last zone evaluated in the well, the
''M-1'' sandstone, tested at a final rate of 360 BOPD of 12 degree API oil
from a 12 foot perforated interval. The Company is currently evaluating
accelerated production plans for the light oil discovery.
On Block 27, testing operations have been temporarily suspended at the
Tipishca 1 discovery well while the second exploratory well on the Block,
Patricia 1, is drilled from the same surface location. The Patricia 1 well is
expected to reach total depth within the next two weeks.
Several statements in this press release, including statements regarding
anticipated oil and gas production and other oil and gas operating activities,
are forward looking. These statements are identified by the use of
forward-looking words and phrases, such as: ''potentially''; ''potential'';
''accelerated production plans''; ''will result''; ''which could result'';
''anticipates''; ''anticipated''; ''may be''; and ''expected''. These
forward-looking statements are based on the Company's current expectations.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially. Among the factors that
could cause results to differ materially from current expectations are: (i)
the general political, economic and competitive conditions in markets and
countries where the Company and its subsidiaries operate, including risks
associated with changes in energy policies, currency fluctuations and general
operations in foreign countries; (ii) changes in the Company's and its
subsidiaries' access to the pipeline capacity, which is controlled by
government agencies in the regions where the Company and its subsidiaries
operate, and pipeline disruptions and capacity constraints; (iii) fluctuations
in the prices of oil and natural gas; (iv) inherent uncertainties in the
interpretation of engineering and geologic data; (v) operating hazards and
drilling risks; and (vi) the timing and occurrence (or non-occurrence) of
transactions and events which may be subject to circumstances beyond the
Company's control.
Pacalta is an international oil and gas exploration, development and
production company with common shares trading on The Toronto Stock Exchange
under the symbol PAZ and on the NASDAQ under the symbol PAZZF.
-30-
For further information: John D. Wright, President & CEO,
011-593-2-449-246; or M. Bruce Chernoff, Executive Vice President, (403)
266-0085
|
