FIELD ACTIVITIES / Can West Exploration Granted Columbian Drilling Permit
CAN WEST RECEIVES PERMIT TO DRILL ON LAND ADJACENT TO SEVEN SEAS EMERALD MOUNTAIN DISCOVERY
Vancouver, BC, Jan 12, 1999 Can West Exploration Inc. (VSE CWI)
The Company is pleased to announce the official approval and issuance of the Environmental Permit for the Lagunillas Exploration Block. With the receipt of the permit the Company is now poised to begin exploratory drilling operations on the block.
The new permit, issued as Resolution 1278, was signed by the Minister of the Environment on December 24, 1998. Official public notification was issued in the Colombian National Newspaper on January 6, 1999.
With the permit in hand, the Company has begun preparations to drill its first exploratory well on the Lagunillas block. The Venadillo-1 well, located in the southern portion of the block, will be drilled to a total depth of about 3,500 feet. The well will be drilled as a step-out to the Halcon-1, Quinche-1 and Chisga-1 wells, which have previously tested and produced oil from Tertiary-age Doima formation sandstone reservoirs. The Company believes that the Doima reserves at the Venadillo prospect may be similar to the proven reserves of the nearby Toqui-Toqui field of 9.5 million barrels of oil and 3 billion cubic feet of gas. The Toqui-Toqui field has to date produced 2.5 million barrels of oil.
The Venadillo well will be drilled using state-of-the-art-drilling techniques to avoid the reservoir damage experienced in the offset wells. With a successful completion the Company will apply to the Colombian State Oil Ministry, Ecopetrol to designate the four wells as a commercial field. The Venadillo-1 is scheduled to spud in March 1999.
Following the drilling of the Venadillo-1 well the Company is planning to drill a deep thrust fault cretaceous sandstone prospect. This seismically defined drilling target is analogous to Seven Seas discovery in the cimarrona formation. There have been other significant discoveries in the immediate area in the past year. These discoveries were all at depths similar to the target identified by Can West.
Can West Exploration Ltd. (Can West) is an international oil and gas exploration and production company. Can West owns a 100% interest in the approximately 300 square mile Lagunillas and Colon Blocks. These blocks are located in the Middle Magdalena Basin, Colombia, adjacent to 3 proven oil fields including Seven Seas Emerald Mountain discovery. |
