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Gold/Mining/Energy : AOW, Arrowhead Mineral Corp -- Ignore unavailable to you. Want to Upgrade?

To: Traveling Man who wrote (62)	8/7/1998 9:28:00 AM
From: JIM FINDLATER	Read Replies (1) \| Respond to of 193

Hi TM, ****NEWS RELEASE*********** Subject: Stockwatch: Arrowhead Minerals Corp - News Release Date: Fri, 07 Aug 1998 02:33:22 -0700 From: newsout@canada-stockwatch.com To: JIM_FINDLATER@bc.sympatico.ca Best gas well yet comes on-stream at Mesa location Arrowhead Minerals Corp AOW Shares issued 10,741,506 Aug 6 close $0.31 Fri 7 Aug 98 News Release See Ultra Petroleum Corp (UP) News Release Mr. Jerry Albertus reports Ultra Petroleum Corp. brought its Mesa 15-8 well into full production with a 24 hour flow rate into the pipeline of 16.1 million cubic feet per day of gas and 200 barrels of condensate. This makes it the company's best producing well yet in its exploration and development program in the Green River Basin of southwestern Wyoming. This is the company's best production rate so far. It confirms the company's feeling that the Mesa area has the potential to become a distinct new gas field in the Green River Basin. So far, only one major gas field has been declared in the area and that is the Jonah Field, about 20 miles south of Ultra's Mesa well. The company's Mesa 15-8 well underwent a total of 10 fracture stimulations in multiple pay zones of the overpressured sandstone at depths between 8,488 feet and 12,832 feet. This 4,300 foot pay interval is Ultra's largest commingled interval to date. The gas production from 12,832 feet is Ultra's deepest gas production to date. The initial completions between 12,832 and 11,600 feet were put on line Jan. 1, 1998, and the well has already produced 327.5 million cubic feet of gas and 1,720 barrels of condensate through the end of July. Ultra Petroleum has an 85 per cent working interest before payout and a 53.125 per cent working interest after payout, and Western Gas Resources has a 15 per cent working interest before payout and 9.375 per cent working interest after payout. Gilbert Laustsen Jung Associates Ltd., reserve engineering consultants for Ultra Petroleum, have estimated the proven reserves attributable to the Mesa 15-8 at 9.441 bcf of gas and 80 mstb in associated liquids. Additional reserves have been assigned as probable, pending performance of the well. Ultra Petroleum's Mesa 15-8 well site is on the Pinedale anticline, one of the key exploration areas in the region. Ultra Petroleum has the largest single land position along the anticline, where its drilling activity this year is being used to determine the magnitude of the productive area associated with the Mesa 15-8. The Bureau of Land Management is currently conducting an environmental impact study of full field development on 200,000 acres encompassing the Pinedale anticline. There are currently four rigs drilling on Ultra acreage with a fifth rig being mobilized. Well completions are under way at four different locations. Stewart Point 3-28 is 3.5 miles to the north of the Mesa 15-8 and is currently drilling at 12,484 feet. Top of the overpressured zone was encountered at 8,590 feet. Mud logs, gas shows and flares appear similar to the Mesa 15-8 well. The Pinedale Federal 13-2a is five miles south of the Mesa 15-8. McMurry Oil is drilling to a target depth of 11,950 feet on a farmout arrangement with Ultra. The Pinedale 13-2a is currently drilling at 10,977 feet and burning a flare. Two miles south east of the Mesa 15-8 Ultra has built a location and is mobilizing a rig to drill the Mesa 3-22d. West of the Pinedale anticline, Ultra and drilling partner Green River Petroleum have done two of six potential fracture stimulations at the Lovatt Draw 15-8 well. The well is currently awaiting production equipment and a pipeline construction permit. At the War Bonnet 9-23 well in the southern part of the Pinedale anticline, Ultra and partner Arrowhead Minerals are preparing to perform the third of six fracture stimulations. Each of the first two completed zones flowed into the pipeline at approximately 1 million cubic feet of gas per day. At the Lizard Head 11-8 well in the eastern part of the Pinedale anticline, Ultra and partner Colt Energy have completed four out of four zones. Plugs are being removed, after which a production log will be run and the well will be shut in awaiting a pipeline. At Stud Horse Butte in Jonah Field, Ultra has 10 producing wells and is currently drilling with two rigs. Ultra is working with strategic alliance member, Halliburton Co., to drill and complete seven wells at SHB this fiscal year. The first of these seven wells, the SHB 3-23, has been drilled and completion operations will start this week. The second well of the program, the SHB 9-24, is drilling ahead at 12,324 feet and burning a flare. Ultra is drilling 4 wells at SHB with partner Western Gas Resources this fiscal year. The first well of this program, the SHB 11-23, is currently drilling ahead at 1 1,435 feet and burning a flare. With the addition of the Mesa 15-8, Ultra is currently producing a gross 41 million cubic feet per day and a net 14 million cubic feet per day of gas in the Green River Basin. WARNING: The company relies on litigation protection for "forward-looking" statements. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com Cheers Jim