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Gold/Mining/Energy : Bitech Petroleum Corp new well 2400 bopd -- Ignore unavailable to you. Want to Upgrade?

To: Bob (Hijacked) who wrote (7)	10/29/1997 2:36:00 PM
From: Bob (Hijacked)	Read Replies (1) \| Respond to of 32

News: Doubling of reserves at South Kyrtayel Bitech Petroleum Corp BPU Shares issued 43,802,327 Oct 27 close $4.35 Tue 28 Oct 97 News Release Mr James Clubb reports The results of the recent development drilling have led to a doubling of the recoverable reserves at South Kyrtayel and a consequential increase in the expected production rates from the field. A recent report, completed by Scientific Software-Intercomp (UK), shows that the proved reserves initially recoverable from the field are now estimated to be 43.8 million barrels (41.61 million barrels net to the company). As at October 1 the remaining proved recoverable reserves were 42.76 million barrels (40.62 million barrels net to the company). This reserve estimate has been prepared using a deterministic method which conforms to the policies and rules adopted by Canadian securities regulatory authorities. Previously the reserves were estimated using a probabilistic method and under this the P50 (proven and probable) reserves were considered to have been 21.2 million barrels (20.1 million barrels net to the company). The attached notes set out a summary of the current and previous reserve estimates. Management believes peak production from the field is expected to reach approximately 20,000 barrels a day in mid-1998. The company is currently in the process of drilling its fifth development well on the South Kyrtayel field. The well is drilling ahead and is expected to be on production by mid November. A recovery factor of 30% has been applied for the main sands for the currently planned primary gas cap drive. Recovery will be closely monitored and may be improved if an enhanced oil recovery process is employed, or if well reservoir deliverability exceeds the current forecasts. SSI Notes to its October 1997 Report "On the basis of significant new information for the field and the development program currently under way, the in-place volume and recoverable reserves are now considered proved. Since the analysis in February 1997, information acquired includes 3D-seismic and three new wells: SK-101 in the southern area and SK-33 and SK-201 in the northern area. Fluid, core and test data have been acquired to international standards from these wells. All of this has resulted in a substantial improvement in reservoir understanding. At the request of Bitech, SSI has now reported its reserves deterministically supported by these new data, to the required standards of the Canadian Provincial Securities Administrators, National Policy 2b, and (November 1982). The previous probabilistic analysis (February 1997), based on scarce data and reporting to SPE standards, was prudent at that time". SSI SSI is a firm of petroleum engineers providing oil consulting and technology to exploration and production companies worldwide. The firm has offices in London, Calgary, Beijing, Denver, Jakarta and Houston.