FIELD ACTIVITIES / Stampede Oils update
Stampede Oils Inc. News Release
CALGARY, Oct. 13 /CNW/ -
Stampede Bcat et al TV 7-25-20-3 W5M
Stampede Oils Inc., 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 down dip 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 located significantly up structure from this well. Proven
recoverable gas reserves in excess of 400 billion cubic feet (BCF) 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 located 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 initiated a meeting of working interest partners on
Thursday, October 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 pre-production stimulation, should be able to produce a
combined 15-20 million cubic feet (mmcf) 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(x) APO(xx)
------ -------
Bearcat Explorations Ltd. 38.250% 21.250%
Stampede Oils Inc. 21.250% 10.625%
Fortune Energy Inc. 20.000% 10.000%
Panda Petroleums Ltd. 10.500% 5.625%
Curlew Lake Resources Inc. 10.000% 2.500%
Mobil Oil Canada (FARMOR) GORR 50.000%
(x) BPO - Before Pay Out (xx) APO - After Pay Out
Lsd. 11 Sec. 12 Twp. 19 Rge. 2 W5M
----------------------------------
Bearcat Explorations Ltd. 21.250%
Stampede Oils Inc. 10.625%
Fortune Energy Inc. 10.000%
Panda Petroleums Lid. 5.625%
Curlew Lake Resources Inc. 2.500%
Mobil Oil Canada 50.000%
>>
Stampede et al TV 11-15-21-3 W5M
An application for a drilling license 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 license. The drilling of this
well should be able to commence by mid November and gas production could be
underway 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 Ltd. 53.10%
Stampede Oils Inc. 26.65%
Panda Petroleums Ltd. 14.00%
Curlew Lake Resources Inc. 6.25%
>>
Stampede Raptor et al 6-8-22-3 W5M
The Company and its working interest partners intend to apply for a
drilling license 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
A.P.I. 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 Inc. 18.585%
Bearcat Explorations Ltd. 37.200%
Raptor Capital Corporation 30.000%
Panda Petroleums Ltd. 9.840%
Curlew Lake Resources Inc. 4.375%
>>
The Company plans to submit an application for a drilling license 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 Ltd. GORR 11.125%
Stampede Oils Inc. GORR 5.562%
Imperial Oil Resources Limited 50.00% 39.500%
Panda Petroleums Ltd. GORR 3.000%
Curlew Lake Resources Inc. GORR 1.313%
Berkley Petroleum Corp. 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 (Cdn.).
Both Stampede and Bearcat are expecting to generate very 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
$250,000.00 per month for Stampede and more than $500,000.00 per month for
Bearcat.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
STAMPEDE OILS INC. is listed on The Alberta Stock Exchange under the
symbol STF.
WEBSITE: stampede.ab.ca
-30-
For further information: P. de Bruycker, Stampede Oils Inc., (403)
265-6166 |
