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

To: Kerm Yerman who wrote (11654)	7/8/1998 6:09:00 PM
From: SofaSpud	Read Replies (3) \| Respond to of 15196

FIELD ACTIVITIES / Hurricane Hydrocarbons update HURRICANE HYDROCARBONS LTD. UPDATE FOR MAY AND JUNE 1998 CALGARY, July 8 /CNW/ - Hurricane Hydrocarbons Ltd. has successfully spudded two wells in the company's 518,400 acre exploration license area. Plans are in place to drill an additional three wells in this license area in 1998. Hurricane has drilled seven wells in the Kumkol South field and three, in the South Kumkol field during the past three months. Of these wells, five are at the edge of the license borders and, based on the log data, extends the limits of the pools. This will increase the proven developed producing reserves in these pools. The wells have been cased and are awaiting perforation and testing. The South Kumkol wells SK No.5 and SK No.7, which finished drilling in the last quarter of 1997, were completed and production tested during the first quarter of 1998. During a 48 hour flow test, these two wells flowed light, clean oil from the Jurassic II formation and stabilized at a rate of 2430 barrels per day on a 10 mm choke and 1715 barrels per day on a 12 mm choke with a sandface pressure drawdown of 3.4 and 9.8 per cent respectively. Oil production for May was 57,467 barrels per day and 58,143 barrels per day for June. Hurricane continues with several planned initiatives to enhance production throughout 1998. These initiatives include modifications to our reservoir pressure maintenance and water injection facilities and a concentrated focus on workovers and pump optimizations. Hurricane is working to expedite, the approval for the South Kumkol commercial project, to finalize the gas utilization feasibility study and the development strategy for getting the Qyzylkiya field on production. The company expects the greatest increase in production to occur when the joint venture agreement with LUKoil is finalized. Hurricane has reached an understanding with LUKoil and is awaiting final approval to begin the drilling program planned for the Kumkol North field. As a result of continuing low world oil prices, crude prices in Kazakhstan are currently in the range of US$70 per tonne, or US$7.85 (net of value added tax). In early June Hurricane sponsored an international investment summit held in Almaty, Kazakhstan. The summit attracted nearly 500 delegates from more than 20 countries. The President of Kazakhstan, Nursultan Nazarbayev, addressed the audience and stressed the country's commitment to economic development and support for foreign investment. Economic reforms to date have been praised by the International Monetary Fund in a statement released June 4, 1998. Hurricane is an independent international energy corporation engaged in the acquisition, exploration and production of oil, principally in the Republic of Kazakhstan. Hurricane is listed on the Alberta (ASE) and Toronto (TSE) stock exchanges under the trading symbol HHL.A and on Nasdaq under the symbol HHLAF. Hurricane is a member of the TSE 300 and TSE 200 composite indices. The Toronto Stock Exchange and Alberta Stock Exchange have neither approved nor disapproved the information contained herein. -30- For further information: Richard P. Norris, Vice President Finance and Chief Financial Officer, (403) 221-8431, Cherry Holand, Director of Communications, (403) 221-8273