FIELD ACTIVITIES / Draig - Hanna Well Update
ASE SYMBOL: DRA
JULY 13, 1998
CALGARY, ALBERTA--On June 20 Draig Energy Ltd. placed its
horizontal well at Hanna on production at a rate of 4,000 (3,905
net) mcf / day. The well was drilled 150 meters horizontally,
underbalanced and reached rates in excess of 13,000 mcf/day during
the operation.
The well is currently producing in the Company's 100 percent owned
Hanna gas plant. The plant is presently producing at capacity of
over 5,000 mcf/day of which over 98 percent is Draig working
interest. As a result of the Company's 1998 drilling program,
Draig is reviewing engineering plans to expand the gas plant
allowing it to handle increased gas production from the area.
On June 30 Draig closed an acquisition in the Brent area. Draig
purchased 6.2 BCF of proven-producing gas reserves, 3.2 net wells
which are producing 1,530 mcf/day and 1,559 net acres of land for
a cost of $2.4 million.
Net natural gas production from the core areas of Brent and Hanna
have increased from 1,400 mcf/day when acquired in July 1997 to
8,000 mcf/d presently. Total production for the company is
approximately 1,200 Boe/d as of July 1, 1998. |
