FIELD ACTIVITIES / Circle update
CIRCLE ENERGY INC. UPDATES WELL RESULTS
CALGARY, Sept. 23 /CNW/ - Circle Energy has the following update on the
four-well drilling program (announced August 18, 1998):
- Well No.1 - The Brazeau River, section 15, Shunda well, on production
since June 8, 1998, continues to produce, net to Circle, 300 to 400
BOE/day and $80,000 to $100,000 in working capital per month. Building
on this success, the Brazeau River natural gas re-entry at 6-16-48-12
W4M provided encouraging results. However given the history and
potential in this area, the Company has made the decision to drill a
new well at a more optimum location in section 16 to maximize cash flow
potential. Circle has a 39.55% working interest in this well scheduled
for October 1998. Circle also has a 39.55% working interest in Section
17 where a drilling location is being finalized.
- Well No.2 - The well targeting natural gas in West Texas has been
cased. This well is anticipated to be on production in November,
subject to successful completion. Circle has a 25% working interest.
A second well is planned for the fourth quarter.
- Well No.3 - The first test well in the Waskatenau area has been
abandoned. The additional information gained will be integrated into
Circle's area model as the Company continues to focus on this
relatively low cost, multi-zone project. Circle has a 57.5% working
interest in 5,760 gross acres.
- Well No.4 - Circle has elected to sell the 20% interest in this oil
play. This has created an opportunity to take a 50% working interest
in a natural gas well at Greencourt, Alberta. This well will be spudded
in October.
Circle Energy Inc. is a petroleum and natural gas exploration company
that holds oil and gas leases in the Brazeau, Waskatenau and Morinville areas
of Central Alberta; in Guadalupe, Lea and Quay Counties in New Mexico; and in
Seely, Texas, USA.
The Company's shares trade on The Alberta Stock Exchange under the symbol
CEN.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
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For further information: Bill Baker, President, Circle Energy Inc.,
(403) 777-1925
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