FIELD ACTIVITIES / Courage Energy Inc. Announces Six Months
Exploration and Drilling Update
TSE SYMBOL: CEO
JULY 28, 1998
CALGARY, ALBERTA--COURAGE ENERGY INC. (TSE - CEO) announces six
months exploration and drilling update. During the first six
months, Courage has made significant new pool discoveries which
will add production gains to the fourth quarter.
At Red Creek, British Columbia, Courage at 100 percent interest
has made a multi-zone new pool discovery. Natural gas has been
discovered in the Halfway, Doig and Bluesky formations. The well
is currently being completed and production tested. A pipeline
will be built for a scheduled November, 1998 production start.
At Bear Flats, British Columbia, Courage at 50 percent interest
has completed a well in the Charlie Lake formation at 1.5 mmcf/d.
The well is being pipeline connected and is scheduled to be on
production by September 1998.
At Beatton, British Columbia, Courage has 100 percent interest in
a new pool discovery which has been production tested from one
zone at 3 mmcf/d, with a second zone still to be tested. The well
will be pipeline connected for production at year-end.
At Leduc, Alberta, Courage (100 percent interest) has negotiated
access to a sour gas plant for its 1997 discovery. Construction
of a pipeline commences in October 1998.
In the United Kingdom, evaluation and development of the Fiskerton
and Newton discoveries is advancing at a fast pace.
At Fiskerton, Courage has purchased an additional interest,
increasing the total Company interest to 25 percent before payout,
18 percent after payout in the discovery well and increasing to 18
percent in the balance of the development lands. Two development
delineation wells, the F2 and F3 wells, have been drilled and
cased as oil wells. Completion and full evaluation is underway.
Regulatory approval to build an oil pipeline has been obtained and
construction is scheduled to commence in August 1998.
The 3-D seismic program at Fiskerton has identified a separate
structure west of the Fiskerton pool. Regulatory approval has
been granted to drill an exploration test well on this structure,
scheduled to commence drilling in August 1998.
At Newton, U.K.,(Courage 100 percent before payout, 50 percent
after payout) the discovery well has been production tested from
three of the four oil zones. The Kinderscout formation swab
tested 235 barrels of fluid per day at a 50 percent oil cut. The
middle Longshaw formation swab tested 260 barrels per day at a 100
percent oil cut. The upper Crawshaw formation is flowing oil with
pressure data indicating a capability of pumping 350-400 barrels
of fluid per day at an 80 percent oil cut.
Production testing will continue while the 3-D seismic program at
Newton is being interpreted. A development plan will soon be
submitted to the government.
Courage Energy Inc. is a Canadian oil and natural gas company.
The principal business is the exploration, development and
production of oil and natural gas. The common shares of Courage
are listed on the Toronto Stock Exchange under the symbol "CEO".
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