ENERGY TRUSTS / NAL Oil & Gas Trust Drilling Update
NAL OIL AND GAS TRUST ANNOUNCES SECOND QUARTER DRILLING RESULTS
CALGARY, July 20 /CNW/ - NAL Oil & Gas Trust (''NAL'') announced today
that increased production from recent drilling successes is expected to
maintain forecasted 1998 distributions at $1.12 per unit, based on an average
1998 oil price of $US 15.00 per barrel.
At Joffre, in central Alberta, a second horizontal well has been
completed in the D-3 Unit. The well is currently being production tested and
is anticipated to produce initially at 1,000 BOPD. Total production at the D-3
Unit is currently restricted to approximately 1,900 BOPD due to capacity
constraints of surface facilities. NAL's share of this production is
approximately 830 BOPD, increased from 300 BOPD when the property was
acquired. Expansion of surface facilities and drilling of further wells will
be dictated by the results from production testing of the two recent wells,
along with a detailed reservoir study and engineering review of surface
facility requirements. These results are expected by fourth quarter 1998.
At Alida and Nottingham, in southeastern Saskatchewan, four horizontal
wells have been drilled and are on production. NAL's share of production of
these wells is a total of approximately 230 BOPD.
Fifteen wells have been drilled at Lake Erie, and 11 have been cased for
gas production. A well completion program is underway which will provide gas
volumes to maintain optimum operations. NAL's share of total gas production at
Lake Erie is approximately 6.0 MMCFD.
NAL is an open-end investment trust created to acquire a royalty on high
quality, producing oil and natural gas properties, and is managed by NAL
Resources Management Limited. |
