FIELD ACTIVITIES / Elk Point Updates Pembina Status and Drilling
Activity
TSE SYMBOL: ELK
JULY 27, 1998
CALGARY, ALBERTA--Elk Point reports that interim Good Production
Practice ("GPP") at the Pembina Pekisko C Pool will expire
effective July 31, 1998 and will be replaced by a four month
special Maximum Rate Limitation ("MRL"). This will reduce Elk
Point's net oil production from the pool by approximately 250
barrels per day and net gas production from two horizontal wells
by approximately 5.5 million cubic feet per day until reservoir
pressure support is established. Upon review of a recent
reservoir pressure survey, the Alberta Energy and Utilities Board
("AEUB") has decided that a pressure maintenance program is
necessary to optimize ultimate recovery from the Pekisko pool.
Upon completion of a reservoir simulation study in August 1998,
the Company will apply to the AEUB for approval of a pressure
maintenance scheme using existing water injection facilities.
Subsequent to the above application, the Company will apply to the
AEUB for reinstatement of GPP for the pool.
Elk Point is pleased to report recent exploration successes
including gas wells at Saddle Hills (50 percent W.I.), Pembina (50
percent W.I.), Ferrier (50 percent W.I.), Barrhead (100 percent
W.I.) and Corbett Creek (50 percent W.I.). The Company is
equipping a horizontal oil well at Lobstick (46 percent W.I.) and
a vertical light oil well at Kisby (25 percent W.I.) and is
completing a horizontal oil well at Elcott (100 percent W.I.).
Gas exploration drilling is underway in West Central Alberta at
Evansburg, Apetowun and Newton and in the Alberta Foothills at
Voyageur. Further gas exploration tests are planned in August at
Saddle Hills, Spirit River, Corbett, Thunder and Newton. Drilling
is also progressing on a high impact prospect in the San Joaquin
Basin of California.
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