Year end results
Gentry Resources Ltd GNY.B
Shares issued 13,420,064 Mar 16 close $1.00
Tue 17 Mar 98 News Release
Mr Hugh Ross reports
The company exceeded all corporate objectives for the year. Gentry exited 1997 with production of 651 boe per day, up significantly from 439 boe per day at December 31 1996, representing a 48% increase.
During the year, the company expanded its drilling and exploration programs and saw a total of 63 wells being drilled. Gentry participated in the drilling of 60 oil wells, one capped well and two dry holes, resulting in a success ratio of 97%. For the year, Gentry's domestic activities were focused on developing reserves on its existing land base.
In the Baldwinton area of southwestern Saskatchewan, Gentry (as to a 30.5% interest)and its partners drilled six successful wells, which added approximately 240,000 bbl of reserves net to Gentry. A very aggressive program has been developed for the play, which will result in up to six additional wells being drilled. Reserves at Baldwinton were added at a cost of approximately $2.15 per barrel, In the Dollard unit, also in southwestern Saskatchewan, nine wells have been drilled with eight wells completed and an additional ten wells planned for mid-1998.
In southeastern Saskatchewan, Gentry continues to participate and reap
benefits from its horizontal injection scheme in the Midale unit, operated by Shell Canada, as well as the $1 billion miscible flood project currently being carried out by PanCanadian Petroleum in the Weyburn unit. In the Midale unit, 24 successful horizontal wells were drilled while in the Weyburn unit 20 successful horizontal wells were drilled in 1997. In 1998,a further 11 horizontal wells will be drilled in the Midale unit while a further 46 wells are planned for the Weyburn unit.
Also in southeastern Saskatchewan, Gentry's key unit interests are the
Benson, Steelman 1A and Steelman 4 units. In the Steelman 1A, three successful horizontal wells have just been drilled in the unit. An additional three horizontal wells will be drilled by mid-April in the Steelman 4 unit. In the Benson unit, one horizontal well is scheduled for early April. The Benson, Steelman 1A and Steelman 4 units (Gentry's interest being 10.9%, 2.7% and 13.9% respectively) comprise an area of approximately 34,000 acres or 53 square miles.
In the company's Virden Roselea unit of southwestern Manitoba, one successful horizontal well was drilled in the fourth quarter of 1997, while additional horizontal wills are planned for mid-1998. Gentry currently maintains a 10.6% working interest in this unit. Internationally, the company took an aggressive approach in acquiring new concessions in Australia and West Africa. In Australia, the company participated in the drilling of two exploration wells on its large 1700 sq km (475,000 acre) block resulting in one abandoned and one capped well.
This onshore block is on the eastern flank of the prolific Cooper Basin in northern Queensland. Several additional prospects occur on this block. 1998 activities will most likely see additional seismic shot over key sections of the block following on leads developed by the company's two previous wells.
In March of 1997, Gentry, along with partners Ranger Oil, Gulf Canada and Energy Africa, acquired a large off shore 861 sq km (196,000 acre) licence entitled block CI-102 in Cote d'Ivoire, West Africa. The reprocessing and interpretation of approximately 1600 line kilometres of seismic data has been completed. An additional 1014 kilometres of new 2D seismic has already been completed on key sections of the block with interpretation of this new data to commence next month. In December of 1997, two additional large offshore exploration blocks were also acquired by Gentry, Ranger and Gulf Canada. The two new offshore exploration licences, CI-101 covering approximately 3,200 sq km (790,000 acres) and CI-103 covering approximately 2,500 sq km (620,000 acres), are immediately south and southeast of block CI-102 in water depths of 200m and deeper. A total of 1,000 kilometres of 2D seismic has recently been shot and is currently being processed over both exploration blocks.
In Gabon, West Africa, Gentry, along with the operator, Energy Africa, is conducting an economic analysis on several drilling scenarios for the 325 sq km Ofoubou exploration block, the results of which will be finalized shortly. The concession is approximately 40km east of the Giant Rabi-Kounga oilfield, currently producing at 160,000 boe per day. Gentry's concession has one well in the block, which was drilled in 1992 by Connoco and Occidental. This well went untested, but intersected 70m of oil bearing elastic material.
Gentry plans to participate in the drilling of a total of 80 oil and gas wells during 1998, the largest number of wells ever participated in by the company in one year. Gentry anticipates significant growth in 1998 and continues to be opportunity driven in its efforts to continue to add shareholder value through carefully conceived high impact exploration projects in West Africa and property acquisitions and low risk drilling programs in western Canada. The company's properties have a significantly long reserve life, of which 70% is medium to light gravity oil, 17% is heavy gravity oil, and 13% is natural gas.
If anybody has any questions, please give me a call toll free at
888 876 7196 or view our Website at gentryresources.com
Thank you for your interest,
Bob Vukovich
Gentry Resources Ltd. |
