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Gold/Mining/Energy : Fortune Petroleum (FPX) -- Ignore unavailable to you. Want to Upgrade?

To: Joseph T. Worley who wrote (222)	8/26/1998 10:52:00 AM
From: cmg	Read Replies (1) \| Respond to of 275

Wednesday August 26, 9:43 am Eastern Time Company Press Release Fortune Natural Resources Corporation Announces Exploration Discoveries and Program Update HOUSTON--(BUSINESS WIRE)--Aug. 26, 1998--Fortune Natural Resources Corporation (AMEX SYMBOL:FPX and FPX.W) announced today its recent exploration results and plans for the balance of calendar year 1998. La Rosa - Texas Onshore Gulf Coast: Five new shallow prospects (above 9000') have been drilled by the Company over the past 60 days off the proprietary 24 sq. mile 3D seismic survey. Three of the five new prospect wells (the C-3, Spaulding 12 and C-5) have been completed as producers. Two of the five recent wells (the C-4 and D-1) were plugged and abandoned. Preliminary evaluations of the three wells completed as producers are as follows: La Rosa C-3 -- Three sand intervals totaling approximately 28 feet of net pay, currently producing the lowermost sand first at a rate of approximately 400 mcf/d and 15 bbls per day of condensate on an 8/64'' choke from two feet of perforations. Spaulding 12 -- Twelve sand intervals totaling approximately 54 feet of net pay, currently producing the lowermost sand at a rate of 240 mcf/d and 64 bbls of oil on a 7/64'' choke from four feet of perforations. La Rosa C-5 -- Ten sand intervals totaling approximately 70 feet of net pay, currently awaiting completion. This brings the total number of wells/prospects drilled for the year at La Rosa to seven, of which four (the C-1, C-3, Spaulding 12 and C-5) are discoveries, and three (the C-2, C-4 and D-1) were either dry holes, depleted reservoirs or uneconomic to complete. The La Rosa partners are currently considering additional drilling plans for the year and evaluating potential follow-up locations to the recent discoveries. Further operations at La Rosa will not be undertaken until this review has been completed. Drilling and completion costs to Fortune's 18.75% working interest on these wells to date in 1998 has been approximately $400,000. Espiritu Santo Bay - Transition Zone, Texas Onshore and Offshore Gulf Coast: The Company has commenced drilling on its proprietary 3D prospects at Espiritu Santo Bay. Matagorda Island Prospects The initial land well was spud on August 21 on the King Prospect on Matagorda Island. When its drilling is complete, it is planned that this rig will move approximately 4 miles to the Spring Prospect, also on Matagorda Island, and commence exploratory drilling operations. Drilling operations on the island must be concluded by October 1 due to restrictions protecting migratory birds and other wildlife between October 1 and April 1. It is currently anticipated that both of these island wells can be drilled (and completed, if successful) before the October 1 deadline. Each well should take approximately twenty days to drill and complete. Intra-coastal Bay Prospects The first exploration well in the bay will spud today on the Shark Prospect. This well will take approximately 45 days to drill and complete (if successful). It is anticipated that the barge rig used for this well will continue to be utilized to drill additional prospects in Espiritu Santo Bay, but the operator has advised Fortune it may, at some time, use the rig for two nearby shallow development wells in portions of the Grass Island Field, in which Fortune and certain of its other non-operating partners do not have an interest. Fortune's share of drilling costs are expected to range from approximately $70,000 to $170,000 per well for its 12.5% working interest in the wells expected to be drilled in Espiritu Santo Bay in 1998. Ship Shoal Blocks 43 & 67 - Transition Zone, Louisiana Offshore The Company participated in the drilling of a well on the Sea Serpent Prospect in July. The well was a dry hole in the D-2 sand, which was the primary target. Although the well did encounter approximately 12 feet of net pay in the Terra sand (the primary target in the upcoming Whiskey Pass Prospect), it was deemed uneconomic and the well was plugged and abandoned. The Company has been advised that the next Whiskey Pass Prospect well should spud in the first half of September. This well should take 15 to 30 days to drill and complete, if successful. If it is completed, it can be expected to be on production within 120 days. Please note that the current drilling schedule is subject to changes due to numerous factors, all of which are beyond the Company's control, including equipment scheduling, weather, permitting and other operator activities. Fortune Natural Resources Corporation is an independent oil and gas exploration and production company with its principal properties located onshore and offshore Louisiana and Texas. Certain statements in this news release regarding future expectations and plans may be regarded as ''forward looking statements'' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They are subject to various risks, such as operating hazards, drilling risks, and other uncertainties inherent in the business of exploring for, developing and producing oil and gas which may be beyond the Company's control. For a discussion of the contingencies and uncertainties affecting future events and forward-looking statements, see Fortune's Annual Report on Form 10-K for the year ended December 31, 1997, as well as other filings with the Securities and Exchange Commission. There can be no assurance that the Company will be successful in meeting its expectations. ------------------------------------------------------------------------ Contact: Fortune Natural Resources Corporation, Houston John L. Collins, 281/872-1170