CORP. UPDATE / Merit: new farmin; confirms exit target
Merit Enjoys New Growth Opportunity in East Central, Alberta
CALGARY, Nov. 2 /CNW/ - Merit Energy Ltd. is pleased to announce that it
has entered into a major area Farmin in its East Central Core Area. The
Farmin provides Merit the opportunity to explore for hydrocarbons on an
additional 120,000 acres of undeveloped lands within a 53 township area. The
transaction carries an initial term of two years and ensures the Company with
continued growth potential within its core area. Year to date, Merit has
drilled 56 wells in the East Central area and is producing 45 million net
cubic feet per day from this area. Merit currently controls an estimated
850,000 net acres of undeveloped land corporately. The East Central area
encompasses approximately 550,000 of the total undeveloped acreage.
Drilling efforts have also continued at an aggressive pace in both
Southern Alberta and Southwestern Saskatchewan. The Company has drilled 143
wells resulting in 106 gas wells, 8 oil wells, 28 dry holes and 1 service well
for an overall drilling success rate of 80 percent. Exploration efforts in
Southern Alberta have been rewarded with the recent completion of a 100
percent working interest gas well capable of producing greater than six
million cubic feet per day. Drilling has also been successful in Southwest
Saskatchewan, where a new gas plant has recently been completed bringing
onstream an additional seven million cubic feet per day.
Current raw production is approximately 9,700 barrels of oil equivalent
per day, resulting in net sales after shrinkage of approximately 9,200 barrels
of oil equivalent per day (76 mmcf/d gas and 1,600 barrels of oil liquids).
The Company's production forecast, which projected an exit volume of 10,000
barrels of oil equivalent per day, appears to be in hand. Production
additions for the balance of the year will come from Merit's East Central,
Jenner, Vidora and Little Bow areas and all production additions will be gas.
Merit is a publicly listed (Toronto Stock Exchange) oil and gas resource
company whose objective is to grow through exploration, exploitation and
acquisitions.
The Toronto Stock Exchange has neither approved nor disapproved the
contents contained herein.
-0- 11/02/1998
For further information: Duncan Chisholm, President and CEO or Linda Shiel, CFO at (403) 263-4899 |
