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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (11419)	6/23/1998 11:24:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Pan-Global Enterprises Update PAN-GLOBAL ENTERPRISES INC. - ACQUISITION AND EXPLORATION UPDATE VANCOUVER, June 23 /CNW/ Pan-Global Enterprises Inc. VSE SYMBOL - ''PGE'' Further to Pan-Global Enterprises Inc.'s news release on June 17, 1998 the company is pleased to announce detailed information regarding recently acquired prospects and an update on domestic developments. Acquired International Prospects: Tunisia/Bazma Pan-Global has an option to purchase a 40% interest from a third party in the Bazma prospect, resulting in a 6% WI. The Bazma permit comprises an area of approximately 500,000 acres, located in central Tunisia. Three pipelines with available capacity run along the eastern boundary of the permit, carrying oil and gas to the terminals on the Gulf of Gabes, approximately 75km to the northeast. The initial well, Bazma 1 commenced drilling operations on April 1, 1998 and is expected to reach total depth by mid July 1998. Eurogas Corporation is the operator of the well and Mobil Oil has farmed-in on a promoted basis (pay 53% to earn 40%). Encouraging results at this location could lead to 3 additional prospects of similar size and potential in this area. Yemen/Block43 Block No. 43 is located immediately to the south and east of the Canadian Occidental Masilla block No. 14 where they are currently producing approximately 200,000 bopd and have suggested reserves close to 1 billion barrels of recoverable oil. The Canadian Occidental export pipeline runs through the southwest portion of this block. There is 1500km of seismic in place, the operator is reviewing the existing data and has identified several preliminary leads for exploratory wells. Plans include a high-resolution gravity and magnetic survey to help refine these leads and then acquire 3-D seismic over the most promising leads. Plans to drill these wells will be based on the timing of 3-D survey results; most likely scenario is the first quarter of 1999. The Masilla block has identified 13 separate oilfields, ranging from approximately 5 million barrels of recoverable oil (MMBO) to over 200 MMBO. The geology of the Masilla block carries into block No. 43 and some of the wells have indicated oil shows. Pan-Global has a 16% WI in this project. West Texas/South Fort Stockton Pan-Global has purchased a 6.67% WI BPO and a 5% APO in this project. To date, two prospects have been identified by 3-D seismic interpretation. The project area is approximately 5,280 acres, located midway between the Gomez Field to the northwest (cumulative production to date 4.7 TCF gas) and the Puckett Field to the southeast (cumulative production to date 3.8 TCF gas). The prospects are interpreted by First Calgary Petroleums Ltd. management to be similar in size and geological setting to the McComb Field located immediately to the north (cumulative production to date 70 BCF). The well was spudded in February 1998 and is currently at 18,000 feet. The Final Total Depth will be 26,000 feet; October 1998 is when the company expects results. Louisiana/South Lakeside, Cameron Parish The South Lakeside Prospect comprises an area of approximately 3,000 acres, located in southwest Louisiana in Cameron Parish, 17 miles southwest of the town of Lake Arthur, 16 miles north of the Gulf of Mexico coast on the south shore of Lake Misere. The initial well was drilled, cased and suspended in 1997 at total cost of US $9.2 million. The first well was drilled on a loose grid of 2-D seismic, subsequent to the suspension; a regional 3-D seismic program was obtained and interpreted which confirmed the extent of the fault trace and two adjacent prospective fault bocks. The second well will kick-off from the cased portion of the first well, drill laterally approximately 800 feet, then vertically into the Myogypsinoid sands. Re-entering the second well started on June 13th, 1998 and is expected to be a 30-day program. The reserve potential may be up to 750 BCF of gas, adjacent fields have produced 500 BCF to 1.5 TCF of gas. Pan-Global has a net 5% WI in this project. Domestic Developments: Long Coulee-Alberta During the fourth quarter of 1997, Pan-Global participated in the drilling of two wells that resulted in a new pool gas discovery and a development well. The company has an 18% BPO and 16% APO for the first two wells. The new pool discovery gas well is located at 14-7-18-22 W4M and the development well at 14-11-18-23 W4M; production tests indicated a combined rate of production of 3,000 mcf/d of sweet gas and some liquids. The wells have been tied-in and production will begin in July 1998. Pan-Global has participated and currently evaluating one additional well at 12-6-18-22 W4M. The company has 22% BPO and 21.33% APO in this well. Long Coulee North-Alberta Pan-Global has an AMI in 20 sections covering 12,800 acres, which is adjacent to its successful properties to the south. The company has identified several drillable locations based on interpretation of seismic covering over 70 miles. Pan-Global is currently drilling at W4M, paying 40% of costs to earn 28% BPO and 28% APO. Kirk Lake-Alberta Pan-Global purchased a 50% working interest in an Alberta Crown Lease at a land sale in November of 1997. The company believes that this is a good candidate to farm-out during 1998 or to participate in the drilling of this moderate drill depth, relatively low risk well. Cereal-Alberta Pan-Global has a 20% WI in two sections of pooled lands and a 20% interest in an AMI. The company plans to purchase seismic and reprocess to optimize a drillable location in 1998. This project is a low risk candidate based on geologic/geophysical control. Sturgeon Lake-Alberta During the fourth quarter of 1997, Pan-Global purchased an option to participate in the exploration and development of D-2 (Nisku) and D-3 (Leduc) prospects. Suncor has farmed-in and pooled their interests in the area where Range Petroleum is the operator. Additional sections of land have also been purchased, two sections in Block A and one section in Block B. Pan-Global can elect to exercise its option as to a 1.5% WI on Block A after the well has been drilled or 2% WI in Block B after issuance of a drilling A.F.E. Sturgeon Lake prospects are of enormous size and may have millions of barrels of recoverable oil. Pan-Global Enterprises Inc. is a Canadian based independent oil and gas company engaged in North American and International projects. The company trades on the Vancouver Stock Exchange under the symbol PGE.