August 27, 1998
TO THE SHAREHOLDERS:
Stampede Oils Inc., the operator of the Stampede et al TV 7-25-20-3 W5M Deepening/Drilling operation, advises that a rig has now been moved onto the well site and that drilling is to commence by Friday, August 28, 1998.
The previously suspended 7-25 well is cased down into the top of the Regional Mississippian Turner Valley formation at a depth of approximately 10,000-ft. The drilling operation is expected to reach total depth at 12,000 ft.+ in two weeks, approximately 30 ft. below the base of the target Devonian Crossfield reservoir. Testing of the Crossfield should be conducted over a one-week period.
The 7-25 well operation is expected to encounter a minimum of 185 ft. of net Crossfield gas pay. Success at this location will contribute to the determination of very major and extensive proven recoverable Crossfield gas reserves in the Turner Valley North area.
Subsequent to completion of the well, Bearcat will have a 56.70% interest in the Section 25 P&NG lease.
Licence application proceedings are currently underway for the drilling of the 11-15 development well, the location of which directly offsets the Imperial Berkley 2-21 Regional Mississippian Turner Valley gas discovery well. The operator of this well, which is currently undergoing a completion program, preparatory to being placed on production, has reported in excess of 100 ft. of net gas pay in the 2-21 well, in which Bearcat has an after payout 11.125% interest.
The drilling rig currently on the 7-25 well site is to be used to drill the 11-15 well. Subject to the receipt of the drilling licence, drilling of this well should commence in the latter part of September. Bearcat will have a 53.10% interest in the related Section 15 P&NG lease, upon the completion of this well.
Production from the Regional Turner Valley formation reservoir in the 2-21 and the offset 11-15 wells should be implemented by the end of this year. Should Crossfield gas be encountered as expected in the 7-25 well, commencement of significant production could be as early as mid 1999. This would also include production from the Stampede Bcat et al Hartell 4-13-19-2 W5M Crossfield gas discovery well and planned follow-up wells.
Success of the 7-25 and 11-15 locations along with the already successful proven 2-21 gas discovery well, will contribute to a very positive escalation of Bearcat's proven reserves, related market value and cash flow.
The Company will continue to update the Shareholders regarding the progress of these operations on an ongoing basis.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
Bearcat Explorations Ltd. is listed on The Alberta Stock Exchange under the symbol BEA.
Web Address: www.bearcat.ab.ca |
