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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: RIK who wrote (4208)	11/28/1997 4:29:00 PM
From: RIK	Respond to of 24916

ALL / AQF Friday November 28, 3:49 pm Eastern Time Company Press Release AltaQuest Energy Corporation Third Quarter Interim Report CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 28, 1997--AltaQuest Energy(Alberta Stock Exchange:AQF. - news) ALTAQUEST ENERGY CORPORATION (''AQF'') is pleased to present exciting exploration results. The Company has recently announced a new pool discovery at Fiskerton in the United Kingdom which has the potential to dramatically increase production and reserves starting early in 1998. The Company remains in a very strong financial position to fund its exploration and development program for 1998. Over the last year, AltaQuest has completed three producing property acquisitions which have increased its production by 335 barrels of oil equivalent per day (BOE/d) to average 350 BOE/d currently. The total cost of these acquisitions was $3.2 million or $9,550 BOE/d and $6.15 per bbl of proven reserves. With an established production base, AltaQuest now has a springboard from which to fund its exploration efforts and continue to evolve at a corporate level. As a growth-oriented company focused on exploration, AltaQuest has participated in ten plays to date which have resulted in three new pool discoveries. AltaQuest's most recent discovery at Fiskerton (24.5 percent APO) is significant in the fact that it was drilled on a structure that appears to be approximately four square kilometers in size on 2D seismic. The 60 foot net pay column and aerial size of the feature is similar to the Welton pool that contains in excess of 20 million barrels of recoverable reserves. A $1.2 MM 3D seismic program will be undertaken in January, 1998 and, pending regulatory approval, a 3 to 5 well delineation drilling program is scheduled for June of 1998. The Fiskerton discovery has outstanding potential to increase production and reserves over the long term, and is not only an important find for AltaQuest but also for the United Kingdom on-shore. AltaQuest's land position in this area totals 85,000 net acres and the Company has applied for an additional 100,000 net acres in and around our East Midlands acreage. The discovery well, Fiskerton Airfield #1, is, pending government approval, planned to be completed in January, 1998. It is anticipated the well will flow at an initial production rate in excess of 900 bopd but will most likely produce at a sustained 500 bopd. This well will tremendously increase production and cash flow starting early in 1998. AltaQuest's next exploration well, Newton-on-Trent (50 percent APO) will test a separate structure 14 miles west of the Fiskerton pool and, pending the Department of Trade and Industry's approval is scheduled to spud at the end of January. Through its ongoing exploration efforts in the United Kingdom, AltaQuest is poised to become a major player in this area and will set an aggressive pace for growth over the next 2 - 3 years. Domestically, AltaQuest has an aggressive exploration and development program lined up for 1998. We have four firm drilling locations in Sylvan Lake, one in Stanmore, one in Three Hills Creek and one in Lyleton, Manitoba. Pending success on these projects, AltaQuest is in a strong financial position and has the necessary financial resources to support its 1998 exploration and development program. Current annualized cash flow is approximately $1.0 million, no debt and working capital totals $2.7 million. The Company has allocated a budget of $4.0 million for 1998 exploration and development activities, and will fund its upcoming program primarily from working capital and cash flow. AltaQuest is currently establishing bank lines in the event that capital expenditures exceed the budget as a result of drilling success. With an outstanding discovery at Fiskerton, and the drilling of the Newton well in the U.K. in the first quarter of 1998, AltaQuest will direct its exploration efforts towards the United Kingdom while continuing to search for new discoveries in Western Canada. As well, AltaQuest is pursuing both corporate and property acquisitions in its core areas domestically and internationally.