To Mike H.
Not much to post for awhile,here's an update (Mike, please e-mail me your estimate of the reserve for this area, also a break-up value before Strachan and a break-up value of FST and DAL with Strachan).
1. Twin well should commence drilling within a week.
2. A rig has been contracted and the lease is prepared.
3. Tie-in has been surveyed, work has been contracted out and Gulf is planning to pre-sell liquids.
4. The partners are meeting today to discuss future location for placement of next deep well.
5. Discussions with a major are in progress.
The following is a news release by Canadian 88 on their discovery well in Strachan, in the Leduc formation. This well borders Dalton and partners land.
___________________________________________________________________
Canadian 88 Energy Corp
EEE TSE
February 10, 1999
Two Significant Gas Discoveries, Exploration Drilling Program Update
CANADIAN 88 ENERGY CORP ("EEE-TYADQ;CEEYF-L")
- Two Significant Gas Discoveries, Exploration Drilling
- Program Update
Greg Noval, President of Canadian 88 Energy Corp. of Calgary, Alberta announced that its Strachan 15-33-37-8 W5M well (76 percent Canadian 88 W.I.) has been successfully drilled into the Leduc zone to a depth of 3,868 meters (12,691 feet) and has encountered significant hydrocarbons with gross pay in excess of 80 meters. Completion operations have commenced and this well is anticipated to be placed on production at the end of the month at expected initial rates of five to ten mmcf/d. Reserves associated with this prospect are expected to be between 40 to 75 Bcf.
In addition, at Olds/Crossfield a well at L.S.D. 13, Sec. 34, Twp. 32, Rge. 1 W5M (100 percent Canadian 88 W.I.) has reached total measured depth of 3,649 meters (11,972 feet) after successfully drilling horizontally 924 meters into the Wabamun formation. Preliminary indications are that this well has also encountered significant hydrocarbons and completion activities will commence immediately.
On the exploration front, Canadian 88 currently has five additional rigs drilling deep gas prospects in the Alberta foothills. At Wildcat Hills, the 10-14-27-7 W5M well is currently drilling ahead at a depth of 2,561 meters on its way to a targeted total depth of 3,453 meters (11,329 feet). The Benjamin Creek well located at L.S.D. 1, Sec. 26,Twp. 28,Rge.8 W5M is currently drilling ahead at 1,944 meters on its way to a targeted depth of 2,450 meters (8,038 feet). Both wells are part of a large multi-well foothills drilling program currently underway in the area and both wells are evaluating separate Mississippian foothills thrust sheets with estimated reserve accumulations of 100 to 300 Bcf apiece.
At Ricinus, a wildcat well drilling at L.S.D. 13, Sec. 22, Twp. 35, Rge. 9 W5M targeting the lower Manville formation is currently at 3,424 meters on its way to an estimated total depth of 3,600 meters (11,812 feet). A development well at L.S.D. 12, Sec. 2, Twp. 36, Rge. 9 W5M is also currently drilling ahead without incident at 2,912 meters on its way to an estimated total depth of 4,300 meters (14,108 feet).
At Waterton, the seventh well on our new Waterton natural gas field is currently drilling ahead without difficulty at 3,619 meters with a 300 meter horizontal leg currently underway on its way to a total measured depth of 4,132 meters (13,557 feet) at L.S.D. 15, Sec. 24,Twp. 7,Rge. 3 W5M.
Canadian 88 Energy Corp. (EEE) is an independent public oil and gas company with its head office in Calgary, Alberta, Canada. The shares of Canadian 88 Energy Corp. are traded on the Toronto, Alberta and American Stock Exchanges.
TEL: (403) 974-8800 Canadian 88 Energy Corp.FAX: (403) 974-8811 Greg Noval, President Cam Taylor, V.P. Exploration
Thanks,
Scotchman
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