7-25 well operation suspended
Stampede Oils Inc STF
Shares issued 43,893,514 Oct 9 close $0.16
Tue 13 Oct 98 News Release
Mr. P. de Bruycker reports
Stampede Bcat et al TV 7-25-20-3 W5M
Stampede Oils, operator of the Stampede Bcat et al TV 7-25-20-3 W5M well,
advises that the Regional Devonian Crossfield zone was encountered 337 feet
structurally higher in the recent deepening/drilling operation than in the
downdip Stampede Bcat et al TV 6-23 well 1-1/4 miles to the west. The
results of an initial test in the base of the Crossfield zone, coupled with
well log interpretation, has determined the presence of a 45 foot gas zone
in the top of the Crossfield.
The 7-25 well operation has now been suspended and the drilling rig
released. Subsequent to incorporating the newly acquired data into an
updated exploitation assessment, a service rig will be moved onto the 7-25
site to commence a finalized testing program.
Tangible subsurface data supported by seismic indicates that a minimum of
3,200 acres of P&NG leases, in which the company and its partners hold
interests, are significantly up-structure from this well. Proven
recoverable gas reserves in excess of 400 billion cubic feet should
underlie these leases.
Interests earned in this well spacing unit with the final completion of
this well are as follows:
Bearcat Explorations Ltd. 56.70%
Stampede Oils Inc. 28.30%
Panda Petroleums Ltd. 15.00%
Curlew Lake Resources Inc. .450%
non-convertible override
Marnell Resources Ltd. 2.275%
non-convertible override
Xerex Exploration Ltd. 2.275%
non-convertible override
Stampede Fortune et al Hartell 11-12-19-2 W5M
It is intended to move the drilling rig from the 7-25 well, in the
immediate future, to deepen an existing suspended well at 11-12-19-2 W5M
immediately across the highway from the Stampede Beat et al Hartell
4-13-19-2 W5M Crossfield gas discovery well. The farmor of the 4-13
Crossfield discovery gas well began a meeting of working interest partners
on Thursday, Oct. 1, to expedite the deepening of the currently suspended
11-12 well from its current total depth in the base of the Regional Turner
Valley/Elkton formation, down into the Crossfield gas zone, with a view to
having both the 11-12 and 4-13 wells placed on production as soon as
possible. This deepening operation will entail the drilling/deepening of
only approximately 1,200 feet.
The completion of the 11-12 well as a Crossfield gas well, coupled with the
currently suspended 4-13 Crossfield gas discovery well, will enable gas
production from this pool to be tied in by pipeline to the nearest gas
plant for processing. The two wells are expected to be on production in
early 1999 and with effective preproduction stimulation, should be able to
produce a combined 15-20 million cubic feet of gas per day. Total proven
recoverable gas reserves attributable to both wells are calculated to be
approximately 100 bcf.
The interests in the two well leases are as follows:
Lsd. 4 Sec. 13 Twp. 19 Rge. 2 W5M
(earning well)
BPO APO
Bearcat Explorations 38.250% 21.250%
Stampede Oils 21.250% 10.625%
Fortune Energy 20.000% 10.000%
Panda Petroleums 10.500% 5.625%
Curlew Lake Resources 10.000% 2.500%
Mobil Oil Canada
(farmor) GORR 50.000%
BPO - before payout
APO - after payout
Lsd. 11 Sec. 12 Twp. 19 Rge. 2 W5M
Bearcat Explorations 21.250%
Stampede Oils 10.625%
Fortune Energy 10.000%
Panda Petroleums 5.625%
Curlew Lake Resources 2.500%
Mobil Oil Canada 50.000%
Stampede et al TV 11-15-21-3 W5M
An application for a drilling licence for the planned Stampede et al TV
11-15-21-3 W5M offset follow-up well to the IMP Berkley Turner Valley
2-21-21-3 W5M Regional Turner Valley gas discovery well, should be
submitted in mid-October. While the surface location is one mile west of
the 2-21 well, the bottom hole locations are only approximately one-half
mile apart.
The application submission has been delayed to date by objections from
certain area residents, the apparent organizer of which is the president of
a fairly significant public gas exploration company. In accordance with
AEUB regulations Stampede, as operator, has responded in an attempt to
alleviate all objections prior to applying for a drilling licence. The
drilling of this well should be able to commence by mid-November and gas
production could be under way in the first quarter of 1999.
Recoverable gas reserves related to the 11-15 well spacing unit are
calculated to be a minimum of 40 bcf. The well is expected to be able to
produce anywhere from 5 to 15 mmcf of gas per day.
Interests held in the Section 15 P&NG lease, upon successful completion of
this offset well, will be:
Bearcat Explorations 53.10%
Stampede Oils 26.65%
Panda Petroleums 14.00%
Curlew Lake Resources 6.25%
Stampede Raptor et al 6-8-22-3 W5M
The company and its working interest partners intend to apply for a
drilling licence for a Regional Turner Valley test in Section 8 Township 22
Range 3 W5M, approximately four miles north of the IMP Berkley 2-21
discovery well. The geological structural interpretation for this location
indicates it to be an excellent target for major commercial oil production.
If successful, the well is expected to produce in excess of 1,000 barrels
of 39.6 degree API gravity oil per day.
Recoverable reserves attributable to the Section 8 lease are estimated at
approximately eight million barrels of oil. Earned interests in the Section
8 lease, after drilling and successfully completing the test well for
production, will be:
Stampede Oils 18.585%
Bearcat Explorations 37.200%
Raptor Capital 30.000%
Panda Petroleums 9.840%
Curlew Lake Resources 4.375%
The company plans to submit an application for a drilling licence prior to
the end of November. This well should be on production in early 1999.
IMP Berkley Turner Valley 2-21-21-3 W5M
The operator of the IMP Berkley Turner Valley 2-21-21-3 W5M well has
advised recently that progress is being made regarding the eventual
commencement of gas production from this well into the Quirk Creek gas
plant and that the drilling of a follow-up well is expected. Interests in
the 2-21 well P&NG lease for gas production are as follows:
BPO APO
Bearcat Explorations GORR 11.125%
Stampede Oils GORR 5.562%
Imperial Oil Resources 50.00% 39.500%
Panda Petroleums GORR 3.000%
Curlew Lake Resources GORR 1.313%
Berkley Petroleum 50.00% 39.500%
The total proven recoverable gas reserves to be determined for the spacing
units of the above five wells (excluding 6-8) should be in excess of 200
bcf of which the Stampede and Bearcat share will be 31 bcf and 80 bcf
respectively. At a proven minimum discounted value of $1.00/mcf the total
reserves value will equate to $200 million.
Both Stampede and Bearcat are expecting to generate significant gas
production revenue commencing early next year initially from three wells
and possibly as many as six wells, such revenue expected to be in excess of
$250,000 per month for Stampede and more than $500,000 per month for
Bearcat.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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