FIELD ACTIVITIES / Gentry Resources 1997 Operational Review
GENTRY ENJOYS SUCCESSFUL YEAR IN 1997
CALGARY, March 17 /CNW/ - Gentry Resources Ltd. is pleased to report that
1997 was another successful year as 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 bbls 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,
a total of 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 square
kilometer (475,000 acre) block resulting in one abandoned and one capped well.
This onshore block is located 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 square kilometer (196,000 acre)
license entitled Block CI-102 in C“te d'Ivoire, West Africa. The reprocessing
and interpretation of approximately 1600 line kilometers of seismic data has
been completed. An additional 1014 kilometers of new 2D seismic has already
been completed on key sections of the block with interpretation of this now
data to commence next month. In December of 1997, two additional large
off-shore exploration blocks were also acquired by Gentry, Ranger and Gulf
Canada. The two new off-shore exploration licenses, CI-101 covering
approximately 3,200 square kilometers (790,000 acres) and CI-103 covering
approximately 2,500 square kilometers (620,000 acres), are located immediately
south and south east of Block CI-102 in water depths of 200 meters and deeper.
A total of 1,000 kilometers 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
square kilometer Ofoubou exploration block, the results of which will be
finalized shortly. The concession is approximately 40 kilometers 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 70 meters 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 strategic 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. |
