Canadian 88 Energy Corp
EEE TSE
January 12, 1999
Kicks off 1999 with Major Foothills Drilling Program and New Production and Reserves at Waterton
CANADIAN 88 ENERGY CORP ("EEE-TYADQ;CEEYF-L")
- Kicks-off 1999 with Major Foothills Drilling Program - and New Production and Reserves at Waterton
Greg Noval, President of Canadian 88 Energy Corp. of Calgary, Alberta announced that it has kicked-off its 1999 drilling program in Western Canada budgetted at Cdn. $150 million with a large drilling program primarily targetting Mississippian thrust sheets and Devonian reserve accumulations in the foothills of Alberta. The Company said in Calgary that it has seven Precision Drilling Corporation deep foothills rigs currently operating in Alberta in the Wildcat Hills, Ricinus, STRACHEN, Olds/Crossfield and Waterton areas on prospects defined by extensive high resolution 3-D seismic.
In the Wildcat Hills area approximately 30 miles northwest of Calgary, the Company is currently evaluating two separate Mississippian foothills thrust sheets with estimated reserve accumulation of 100 to 300 Bcf apiece drilling two Canadian 88 operated wildcat wells at L.S.D. 10, Sec. 14, Twp. 27, Rge. 7 W5M (75 percent Canadian 88) and at L.S.D. 1, Sec. 26, Twp. 28, Rge. 8 W5M (100 percent Canadian 88) drilling to total vertical depths of 3,453 meters and 2,450 meters respectively. In addition, in the Ricinus area approximately 70 miles northwest of Calgary, the Company has two rigs operating with a wildcat well drilling at L.S.D. 13, Sec. 22, Twp. 35, Rge. 9 W5M (100 percent Canadian 88)targetting the lower Mannville formation at an estimated total vertical depth of 3,600 meters and a development well targetting the Leduc formation drilling to a total vertical depth of 4,300 meters. Furthermore, wells are drilling and evaluated the Devonian formation (100 percent Canadian 88)at Olds/Crossfield at L.S.D. 13, Sec. 34, Twp. 32, Rge. 1 W5M drilling a 1,035 meter horizontal leg into the Wabamun formation at an estimated total measured depth of 3,698 meters and at STRACHEN at L.S.D. 15, Sec. 33, Twp. 37, Rge. 8 W5M where a wildcat well is being drilled 100 percent by Canadian 88 evaluated the LEDUC FORMATION at an estimated total vertical depth of 3,908 meters.
In addition, the Company said in Calgary that it was pleased to commence its drilling program in the New Year with all six of its deep Waterton natural gas wells producing approximately 60 mmcf/d raw gas at restricted rates from its new Waterton natural gas field in southwest Alberta. Further production volumes are expected to be added over the next 30 days as Shell Canada completes required maintenance at its Waterton Natural Gas Plant. Additional production is expected when Canadian 88 completes the drilling of a seventh well which is drilling ahead without difficulty targetting the Mississippian formation with a 300 meter horizontal leg drilling to a total measured depth of 4,132 meters at L.S.D. 15, Sec. 24, Twp. 7, Rge. 3 W5M.
The Company said in Calgary that it is extremely pleased with its Waterton production and that McDaniels Engineering of Calgary, Alberta has just completed a reserve evaluation of the property having assigned 522 Bcf of proven recoverable gas in place to the property and having estimated shrinkage of only 25 percent resulting in proven reserves of 391 Bcf of sales gas. In addition, 48 Bcf of probable reserves were assigned to the property. This compares to 260 Bcf of proven reserves and 42 Bcf of probable reserves previously assigned to the property and reported by Canadian 88 as of January 1, 1998. With these reserves Canadian 88's Waterton natural gas discovery has evolved as one of the largest natural gas discoveries in the foothills of Western Canada in the last ten years.
Canadian 88 Energy Corp. (EEE) is an independent public oil and gas company with head office in Calgary, Alberta, Canada. The shares of Canadian 88 Energy Corp. are traded on the Toronto, Alberta and American Stock Exchanges. |
