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Gold/Mining/Energy : PEL - Purcell Energy -- Ignore unavailable to you. Want to Upgrade?

To: grayhairs who wrote (128)	12/23/1999 9:15:00 PM
From: grayhairs	Read Replies (1) \| Respond to of 165

** News Release ** Purcell commences operations at Fort Liard Purcell Energy Ltd PEL Shares issued 22,800,000 Dec 22 close $3.05 Thu 23 Dec 99 News Release Mr. Jan Alston reports Completion operations have commenced following successful drilling of the M-25 development well on the corporation's gas property at Fort Liard, Nortwest Territories. The well was drilled to a total depth of 3,770 metres. The well intersected approximately 300 metres of the Nahanni zone and encountered significant indications of fractured reservoir. Logging of the Nahanni zone was completed on Tuesday, Dec. 21, 1999. Based on drilling and logs Purcell expects M-25 to be a substantial gas producer. Actual production rates will be determined by testing in early January, 2000. Construction of a 14-inch gathering pipeline is expected to start by Feb. 1, 2000. Production startup for K-29 at 75 million cubic feet a day is anticipated in May, followed by M-25 in the summer of 2000. Purcell is currently studying a number of options for enhancing productivity in the original F-25A discovery well that tested at rates up to 12.8 mmcf/d of gas with the intention of placing the well on production during the third quarter of 2000. The corporation has finalized an expanded revolving production loan facility of $6.5-million with Scotiabank. Purcell expects to exit 1999 with long-term debt of about $3-million. Scotiabank has also provided a $4-million construction interim credit facility for Purcell's share of pipeline costs. Due diligence is being carried out by another financial institution to finalize the provision of a leasing facility up to $10-million for Purcell's share of building facilities at Fort Liard. Purcell does not expect to issue equity to finance its share of development costs to bring the project on production in 2000. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com