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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: brian krause who wrote (5472)	12/12/2001 9:18:46 PM
From: Al Collard	Read Replies (3) \| Respond to of 11802

FGD-v...in the news: First Goldwater's Coalinga No. 1 project on hold Wed 12 Dec 2001 News Release Mr. Conrad Clemiss reports First Goldwater Resources has provided further results from its Coalinga No. 1 sidetrack gas well located in Fresno county, California. During cleanout operations in the liner, excessive amounts of cement were encountered. As a result, the drill string parted and an overshot was used to successfully recover the tubing. In order to continue, a coiled-tubing truck unit is required to complete cleaning out the cement. This is a two-day operation, however, a unit of this type is not readily available and in order to avoid the additional disruption and cost of working through the holiday season, the working interest partners have instructed the operator to temporarily suspend operations until early January. Results to date from mud and electric logs indicate that the potential for success is high. Log sweeps of the primary target Brown Mountain sands between 10,823 to 11,150 feet have identified three separate zones with excellent SP values, which correlate to very good resistivity and also correlate to gas shows on the mud log. Overall porosity at this depth is much better than expected ranging from 10 per cent to 24 per cent. Preliminary data indicate potential for up to 160 feet of net pay throughout the target Brown Mountain formation. The upper zone from 10,823 feet to 10,837 feet (14 feet) had 230 units of gas with 13 ohms of resistivity and 18 per cent to 24 per cent porosity. A second sand interval from 10,860 feet to 10,875 feet (15 feet) has 135 gas units, six to 18 ohms resistivity and 12 per cent to 22 per cent porosity. The lower section from this zone at 10,875 feet to 10,895 feet (20 feet) is of lower quality and may also be tested. Prior to drilling the Brown Mountain formation, a cased hole evaluation log (TMD-L) and a cased hole cement bond log were run over the secondary Martinez sand target, which identified 51 feet of potential net oil and gas pay zones. The main intervals, 9,877 feet to 9,896 feet (19 feet), 9,899 feet to 9,922 feet (23 feet) and 9,924 feet to 9,933 feet (nine feet) have returned excellent resistivity and correlate to the Neutron curve on the Bond log indicating mostly sand throughout the interval. The Halliburton TMD-L logs reveal strong indications of hydrocarbons within these intervals confirming the live oil and gas shows encountered while drilling. Above average porosities are also indicated from these same intervals. These results correlate with the open hole mud log gas shows increasing overall confidence in the data. Other potential intervals are indicated but require further evaluation. The electric logs have also identified a separate 150-foot zone in the Moreno shale formation, which lies above the Brown Mountain formation. The interval from 10,520 feet to 10,670 feet consists of shale with 150 gas units on the mud log. The resistivity is three ohms but the high gas values may indicate the presence of natural fractures, which can produce gas. Conrad Clemiss, president of the company, stated: "Although it is disappointing to not have the results immediately, it makes good business sense to evaluate all the relevant data before progressing at this most important juncture for the well. The operations will commence after the holidays when all the information can be evaluated and the crews are available."