Thread: News Release from Redwood - someone please interpret!
Redwood progressing at Windy Point and Haro South
Redwood Energy Ltd RWD
Shares issued 4,500,000 May 7 close $1.47
Mon 10 May 99
News Release
Mr. Peter Ffoulkes-Jones reports
Redwood Energy comments on two high impact exploration successes.
Windy Point, Wyo.
The first well in the 7,030 acre federal exploration unit that Redwood farmed out to Canadian 88 and Prize Energy has reached total depth. The main horizon, the Mississippian Mission Canyon, came in high relative to the offsetting Chevron well. Logging of the zone is under way. Dip metelogs prior to running casing indicate that the section of pay penetrated is still on the flank of the structure. "This is exceptionally good news," says Redwood president, Peter S. Ffoulkes-Jones, "as it creates at least two low-risk development locations. This well was drilled with few problems and certainly met our expectations. Results to date are very encouraging." Redwood was carried for a 10.16 per cent interest in this well and will participate for a 10.16 per cent working interest in all future operations within this unit. This well is only four miles from the Whitney Canyon/Carter Creek field where plant capacity exists to process gas from the Windy Point area. It is expected that flow testing will be completed by early June on this very exciting prospect.
Haro South, Alta.
Redwood Energy participated with Lexxor Energy Inc. in the recently announced oil discovery in the Haro area. The two wells drilled on the play both encountered 13 metres of oil pay within the Pekisko zone. One well was completed and tested before the end of the winter drilling season, resulting in approximately five barrels per hour of 15 degree API oil. Approximately eight miles to the west, a Pekisko well drilled by another operator flowed in excess of 150 barrels a day from a similar pay thickness after fracture stimulation. In place reserves are estimated at 25 million barrels per section with Redwood holding 12.5 per cent working interest. Redwood has a 10 to 12.5 per cent interest in 19 sections of land within, the area of this discovery, The rise in oil prices makes this a very attractive prospect for Redwood and its partners. An aggressive drilling program is planned for this winter including possible horizontal drilling.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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