MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING WEDNESDAY, FEBRUARY 11, 1998 (6)
OTHER COMPANIES IN THE NEWS (con't)
Dynamic Oil Ltd. (DOL/VSE) announced further results from a multi-well evaluation and re-completion program at St. Albert, AB.
A new pool upper Cretaceous gas discovery has been identified by perforating and testing a prospective Viking gas zone through an existing well bore. The re-completed zone flowed gas to surface at a stabilized AOF (Absolute Open Flow) rate of 14.0 million cu. ft. per day through 2 7/8'' production tubing. Status Engineering of Calgary has assigned reserves of 7.1 billion cubic feet of raw gas-in-place to the new pool.
The well is expected to be on stream at an initial rate of 3.5 million cu. ft. per day as the company's St. Albert raw sweet gassystem is expanded. The gas contains an estimated 27 barrels permillion cubic feet of recoverable natural gas liquids.
The company expects to begin delivering natural gas through its new Carbondale pipeline within the next two weeks at initial rates up to 12.0 million cu. ft. per day, increasing to 16.0 million cu. ft. per day as additional gas comes on stream.
An additional 3.5 to 4.0 million cu. ft. per day is expected to come on line in the next two weeks as three previously announced Ostracod wells are tied into the sweet gas system.
As a result of our re-completion program at St. Albert, new pool gas reserves reported by the company since Dec. 19, 1997, now exceed 17.0 billion cubic feet. Dynamic has a 50% working interest share in the reserves.
As previously announced, Ridgeway Petroleum (RGW/VSE) engaged Schlumberger IPM, an operating unit of Schlumberger Oilfield Services, to undertake an initial field development study, including a preliminary estimate of gas in place, for the Company's St. Johns CO(2)/Helium Project located in eastern Arizona and western New Mexico.
The Company has received and accepted from Schlumberger the final report of the results of the initial field development study, which contains an estimate of twenty-one (21) trillion cubic feet of CO(2) in place.
As new information becomes available, revisions may be required which might significantly change this estimate.
This estimate does not qualify as a reserve estimate report under applicable U.S. or Canadian securities regulations, and has not been verified by an independent reserve estimator. Accordingly, neither the estimate nor the initial field development study should be relied on for financial investment purposes.
INTERNATIONAL
Companies
Sands Petroleum AB (SPB/TSE) and Red Sea Oil (RSO/ASE) announced the discovery of the En Naga North Oil Field Sands reported that a 40 day test program has been completed on the B1- NC177 well in the Sirte Basin, onshore Libya. The final test on the Facha formation flowed 728 barrels of oil per day ("BOPD") of 42 degrees API oil on natural flow. Mechanical problems precluded the running of an electrical pump in the well but calculations indicate a sustainable production rate of 1,800 - 2,500 BOPD in the development phase with a pump installed.
The cumulative flow rate for the 5 test program was 6,517 BOPD.
Sands Petroleum and Red Sea Oil are currently preparing an appraisal program which will consist of an infill seismic program planned to commence in February and at least two appraisal wells in the third quarter of 1998. The appraisal program will also be designed to test deeper structures not penetrated by the B1-NC177 well. Planning for early production is underway.
In parallel, a 1600 kilometre seismic acquisition program is now planned for the third quarter. This program will be designed to delineate existing leads on trend with the En Naga Field and to evaluate a virtually unexplored 7000 kilometre area within Block NC177. Please see attached maps.
Red Sea Oil has a 60 percent interest in Block NC177 with Sands Petroleum AB holding 40 percent. Sands Petroleum owns approximately 61 percent of the shares of Red Sea Oil.
Ram Petroleums Ltd. (RPL.A/TSE) announced that the AIRU-1 well, an indicated oil discovery in Ram's Rio Putumayo Association Contract block in southern Colombia, has not been logged on schedule. Ram has been informed by Schlumberger that a logistical problem encountered en route has delayed the arrival of the logging unit at the AIRU-1 location.
Ram will begin moving 7'' casing onto the location today and will make an announcement when the logging unit arrives at the location, where Ram holds 100% of the working interest.
Earlier this week, live oil was indicated by significantly increased background gas, natural fluorescence and strong fast streaming to blooming cut of samples within a gross interval of 105'. Mud logging and sampling was done by Geoservices Limited. Ram has used its own drilling rig, formerly Parker Drilling Rig No. 154, to drill the well.
Niko Resources Ltd. (ASE - NKO) announced that mobilization and construction of the Land Based Drilling Platform for the Hazira project in India has begun. This will allow drilling on the platform to commence immediately following monsoon, which typically ends in early September.
In addition, the Company is pleased to announce the spudding of on-shore well Hazira #6 to be followed immediately by Hazira #7, Matar #2, and Hazira #8. The Company will be using enhanced completion techniques at Hazira that have resulted in production in similar reservoirs of up to 20 million cubic feet per day per well. A second rig is being mobilized to immediately drill 3 wells in Cambay.
Pyramid Energy Inc. (PYI/ASE) announced the start of its drilling operations in Pakistan. Through its Joint Venture with Pakistan Petroleum Limited, Pyramid is testing two large concession blocks, the Sadiqabad Block (1,028 sq. km., 255,000 acres) and Block 22 (2,422 sq. km, 600,000 acres). Seismic interpretation and mapping has revealed structures that could contain upwards of 1.0 Tcf of natural gas reserves.
Well Daud X-1 commenced drilling on January 28, 1998 using Sedco Forex Rig No.25. At press time, the well was drilling at 667 meters towards its target depth of 3,175 meters. Three prospective zones are to be tested, the Habib Rahj formation at 810 meters, the Sui Main Limestone formation at 1,820 meters, and the Lower Goru formation at 2,950 meters. The well is expected to reach total depth around mid-April, 1998.
Well Hamza X-1 commenced drilling on February 5, 1998 using IDECO Rig No.H-725. At press time, the well was drilling at 313 meters towards its target depth of 1,353 meters. The primary prospective zone is the Sui Main Limestone formation, expected to be encountered at 1,207 meters. The well is forecast to reach total depth around mid-March, 1998.
Both the Daud X-1 and Hamza X-1 wells are being drilled in the gas prone area of the Mid Indus Basin of South Central Pakistan. The Sadiqabad block and Block 22 are offset by large gas fields ranging in size from 1 to 8 Tcf.
Pakistan Petroleum is the operator of the Joint Venture with Pyramid participating at 15% in each of the two blocks. Pakistan Petroleum is a Government company and is the largest gas producer in Pakistan producing 800 MMscf/d or almost one half of the country's total gas production.
Countries
Ecuador
The Ecuador State oil company, Petroecuador, has announced a schedule for the sale of ten oil fields and has notified Grantmining S.A. that the company has pre-qualified to participate in the sale process. The schedule calls for bid submission during May and award during July. Petroecuador had announced earlier that 23 companies were approved to participate.
Grantmining S.A. is a wholly owned Ecuadorean subsidiary of Grantham Resources Inc. (GRN/ASE) It was established in Ecuador in 1996 to manage mineral land acquisitions and exploration. During the last year Grantmining has evaluated several oil and gas opportunities in Ecuador.
Iran
Secretary of State Madeleine Albright will soon decide whether sanctions should be imposed against France's Total SA and two other foreign firms for a natural gas deal with Iran, her spokesman said Wednesday.
"The secretary will be making a determination soon about the sanctionability question," State Department spokesman James Rubin said at the department's daily press briefing.
Rubin would not specify when a decision would be made and, in reply to questions, would not rule out a decision being announced this week.
Since last autumn, the State Department has been reviewing whether a $2 billion deal entered into by Total, Russia's Gazprom and Malaysia's Petronas to develop a major Iranian gas field violates a U.S. law that seeks to punish companies that invest $20 million or more in the energy sector of Iran or Libya over a twelve month period.
If the deal is found to fall under the purview of the law, Albright can impose sanctions immediately, waive sanctions for reasons of national security, or enter into consultations with the relevant foreign government to resolve the issue.
Rubin declined to answer reporters' questions on whether consideration is being given to simultaneously offering a presidential waiver for some or all of the companies if it is determined that they violated U.S. law.
"I can't rule in or rule out anything until we get to a point where decisions are made," Rubin said. "Soon, I think there will be a decision," he reiterated.
If Albright chooses sanctions, she must impose at least two of a menu of six sanctions that affect the U.S. operations of the sanctioned company, including barring U.S. banks from dealing in a significant way with it and withholding some licenses and and other business.
If she decides to consult with the foreign government, she has an initial 90-day period for talks and, if she decides that the government shows signs of taking action, a further 90 days for resolving the issue is allowed. |
