FIELD ACTIVITIES / Canadian 88 Energy Corp. and Redwood Energy,
Ltd. to Drill Large Thrust Sheet Play in Wyoming
CALGARY, ALBERTA--Redwood Energy, Ltd. (VSE:RWD) and Canadian 88
Energy (USA), Inc. a wholly owned subsidiary of Canadian 88 Energy
Corp. (AMEX:EEE/TSE:EEE/ASE:EEE) have entered into an agreement to
directionally drill a 14,000 foot Mississippian test on the Windy
Point Federal Unit in the Foothills Overthrust Belt of Wyoming's
Green River Basin.
"We are very excited to join forces with a partner the calibre of
Canadian 88 on this world class exploration prospect. This is a
major milestone for Redwood Energy," according to Peter
Ffoulkes-Jones, President of Redwood Energy, Ltd.
"Our target reserve potential from the Mississippian Mission
Canyon is estimated to be in the 200 to 500 billion cubic feet
(BCF) range, which would be a substantial achievement for Redwood
Energy, Ltd. The prospect is analogous to a recent large
foothills discovery by Canadian 88 in Canada in the Waterton area
of southwest Alberta," added Jim Catlin, Vice President -
Exploration.
The Windy Point Federal Exploration Unit comprises some 7,029
gross acres in the Foothills Overthrust Belt in Lincoln County,
Wyoming. The acreage is located approximately 35 miles north of
Evanston, Wyoming in a prolific oil and gas producing area. The
giant Whitney Canyon/Carter Creek Field, located approximately
four miles southeast of the Windy Point Federal Unit boundaries,
has estimated natural gas reserves of 5.3 trillion cubic feet
(TCF) and 115 million barrels of liquids. The well will be
directionally drilled re-entering an existing well (100 percent by
Canadian 88) from a surface location in the NESW of Section 10,
T19N-R120W. Redwood Energy will be carried for 10.15635 percent
of the drilling, completion and equipping of the test well.
Future development will be shared 87.5 percent by Canadian 88,
10.15635 percent by Redwood and 2.34365 percent by Legacy Energy
Corporation, a private Denver company. A drilling rig has been
contracted and is expected on site within 30 days. It is
anticipated that it will take 60 days to reach total depth. The
well is estimated to cost $US 2.5 to 3.0 million.
Redwood Energy, Ltd. is a junior oil and gas exploration company
with interests in Alberta, Canada and Oklahoma and Wyoming in the
United States. Canadian 88 Energy Corp. is an independent public
oil and gas company with head offices in Calgary, Alberta, Canada.
|
