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

To: SofaSpud who wrote (12820)	10/15/1998 2:59:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Naftex Energy Corporation announces Rabeh-2 Well put on production Abu Marwa North-1 well spudded VANCOUVER, Oct. 14 /CNW/ NAFTEX ENERGY CORPORATION Trading Symbol: NFTX NAFTEX ENERGY CORPORATION (the ''Company'') is pleased to make a further interim announcement on the drilling, testing and production operations in the West Esh El Mallaha (''WEEM'') Concession in Egypt. Rabeh-2 ------- The electric logs run on the Rabeh-2 well demonstrated excellent reservoir quality in the Miocene Nukhul and Pre-Miocene Matulla/Nubia with high oil saturations. The main zones of interest demonstrate oil saturated sands over a 103 foot section with a potential net pay of over 50 feet in the Nukhul and oil saturated sands over a 160 foot interval in the Matulla/Nubia with a potential pay of over 65 feet. The lowermost zone of the Matulla/Nubia was perforated between 6,194 feet to 6,144 feet (total 50 feet). The well was flowed to surface for an initial clean-up period and is currently on production on a one half inch choke with an average production rate of 1,630 bopd of 28.4 API sweet crude. The well is still cleaning up and consequently a fully stabilized flow rate has not yet been achieved. Oil from Rabeh-1 and Rabeh-2 is being produced into the Rabeh area production facilities and is then trucked to the Geisum Terminal for sale to Egyptian General Petroleum Corporation (''EGPC''). The recent average price at the end of September 1998 for Rabeh crude was US$11.91 per barrel. The drilling rig was released from the Rabeh-2 location and moved to the Abu Marwa North-1 location. It is planned to perforate the remaining oil saturated Matulla/Nubia sections in the Rabeh-2 well using a wireline unit. These intervals will also be put on production and monitored during the drilling of Abu Marwa North 1 well for a potential Matulla/Nubia completion. Alternatively, the well will be perforated over the Nukhul section and put on production. Abu Marwa N-1 ------------- The rig was moved to the Abu Marwa N-1, an exploratory location some 1.9 kilometers South-East of the Rabeh-2 location. The well was spudded at 11:30 p.m. on October 13, 1998. Estimated drilling time to T.D. in Basement is less than 30 days. Future Plans ------------ Based on the encouraging results from Rabeh-2, an aggressive development drilling program consisting initially of one or two additional development wells on the Rabeh structure are being discussed by the partners at a technical meeting in Cairo. This program, if agreed and approved by EGPC, is designed to test additional Nukhul and Nubia Matulla reserves recognized on seismic to lie between 100 feet and 200 feet updip from the Rabeh-2 location. The Operator of the WEEM Concession is ESHPETCO, a joint venture operating company set up between Coplex (Egypt) Limited, Cabre Exploration (Cyprus) Limited (''Cabre'') and the EGPC to conduct operations on the WEEM Concession. The Company and Cabre each beneficially own a 50% interest in the WEEM Concession. A total of 54,041,963 shares of the Company is presently issued and outstanding.