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Gold/Mining/Energy : POE:VSE PAN OCEAN EXPLORATIONS INC. -- Ignore unavailable to you. Want to Upgrade?

To: RSkarsten who wrote (272)	12/16/1999 11:16:00 AM
From: Len Hynes	Read Replies (1) \| Respond to of 277

EKHO Project Update Further to the news release dated November 29, 1999, David Patterson Chairman of the EKHO Project consortium, provides the following progress report on the EKHO Project. As part of their strategic planning Tri-Valley Oil and Gas ('TVOG'), the EKHO project operator, together with its consulting engineers identified the possibility of re-entering the 66X-3, a deep well drilled in 1974 on leases now held by TVOG. The 66X-3 well, which bottomed at 18,876 feet, was America's deepest oil producer according to the February, 1999 issue of World Oil Magazine. On December 6, 1999 a wellhead was delivered for installation on 66X-3. In preparation for installation of the wellhead, it was discovered that the casing at surface does not meet specifications to handle the known pressures in the hole at depth. Given the numerous obstacles that could have prevented re-entry it is fortunate that the problem was discovered early on and at minimal cost. The consortium had been prepared to spend upwards of $500,000 to attempt to re-enter 66X-3, in anticipation of realizing significant savings in time and money over drilling a new hole. As a result of this information, TVOG has elected to commit to a new hole. The consortium has been advised by TVOG that 66X-3 is a candidate for later re-entry for shallower production as the casing appears to have sufficient strength and the logs have shown some extremely attractive shows up hole. In order to cover all eventualities, Tri-Valley took the precaution of contracting a deep drilling rig from Nabors Drilling Company in Bakersfield, California. Tri-Valley will now locate its initial test well between the 31X-10 and the 66X-3 wells which flowed at rates as high as 1,000 and 700 barrels a day, respectively, despite completion problems. The 66X-3 well ultimately produced 11,936 barrels of 42 degree API oil and 13 MMCF of natural gas before abandonment due to technical difficulties; other intervals with significant shows were left untested. The drill site is approximately 40 miles northwest of TVOG's Bakersfield headquarters in California's San Joaquin Valley, a prolific petroleum production province. It is expected that rigging up for the new hole will begin in December, with the rig installed before the end of December. Spudding of the new well is planned for early January 2000. On Behalf of the EKHO Project Consortium David Patterson, Chairman TEL: (604) 685-9177 David Patterson, Chairman TEL: 1-877-778-EKHO (3546) EKHO Project Consortium E-mail: info@ekhoproject.com Website: www.ekhoproject.com