News Relase: Cypress No. 1 well spudded
CVL Resources Ltd CVL
Shares issued 37,247,500 Nov 25 close $0.26
Thu 26 Nov 98 News Release
Mr. Ian Rozier reports
Drilling of the Cypress No. 1 well in ATP-549-P East in Queensland,
Australia is now under way. Cypress No. 1 is one of three wells in
ATP-549-P East in which CVL has a 40 per cent interest, with joint venture
partner and operator, Energy Equity Corporation.
The Cypress block covers 750 square kilometres and includes the only known
simple anticlinal plays in ATP-549-P. An independent consulting engineering
report identified six prospects with a recoverable raw gas potential of 150
bcf for these prospects. The report suggests that the minimum economic gas
field size in this area is between 5 and 8 bcf recoverable (raw) gas; all
the prospects identified in the Cypress block exceed this minimum
potential. Cypress No. 1 is the first of these targets to be tested.
Results from the Cypress No. 1 well will be released in due course.
Following the drilling of EEC's North Bunya No. 1 well, EEC had remapped
the Bunya field and found it to be over three times larger, at 36 bcf, the
largest in ATP-549-P East. CVL is not yet in receipt of an independent
engineering report confirming these estimates for the expansion of the
Bunya field.
As part of the $11-million financing completed on Dec. 15, 1997 the company
issued 5,236,760 transferable warrants that are tradable until Dec. 15,
1998, and exercisable at $1.10. The company made a formal request to the
Vancouver Stock Exchange for a one year extension period for these
warrants. Under the current applicable VSE policies the extension will not
be granted.
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