FIELD ACTIVITIES / BriAlto Energy Corporation Updates Activity
CALGARY, Jan. 19 /CNW/ - During the fall and winter of 1998, BriAlto
participated in 5 gross (1.05net) wells resulting in 3 gross (.6net) vertical
development oilwells, 1 gross (.25net) horizontal development oilwells and 1
gross (.2net) vertical exploratory dry holes.
At Two Creek Alberta, recent drilling success has more than doubled
production from 175bopd gross (35bopd net) to approximately 350bopd gross
(70bopd net). BriAlto and partners have recently received verbal approval
from the AEUB for high GOR penalty relief, Concurrent Production and Block
Status. As a result of this approval and the leverage gained by drilling
success, BriAlto and partners will be flowlining and building facilities to
optimize both existing oil production and currently shut-in gas production. By
June 1999, BriAlto and partners anticipate Two Creek production of 600boepd
gross (120boepd net), including 1.5mmcf/d (300mcf/d net) of gas. At least one
vertical exploratory well and two vertical or horizontal development wells are
planned for the 1st half of 1999. BriAlto will have a 20% working interest in
these wells.
At Wordsworth Saskatchewan, drilling success has pushed production from
15bopd (3.5bopd net), to 250bopd (63bopd net). BriAlto and partners
anticipate a third horizontal development well will be drilled at Wordsworth
before June 1999. BriAlto will have a 25% interest in this well.
At Weir Hill Saskatchewan, BriAlto has acquired additional interests in
existing production, facilities and land. BriAlto and partners expect to
drill up to 2 multi-lateral horizontal wells on this project in the 1st half
of 1999. BriAlto will have a 25% working interest in these wells.
BriAlto is currently producing 260boepd. With facility construction at
Two Creek and additional development drilling at Wordsworth and Weir Hill
management is confident of achieving production levels of approximately
350boepd by June of 1999. BriAlto is currently debt-free with $400,000 of
cash in the bank and $1.5 million of un-drawn lines of credit.
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