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

To: Kerm Yerman who wrote (14901)	1/19/1999 5:02:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Tesco Corporation Announces Two Successful Directional Sidetracks on First Casing Drilling Well CALGARY, Jan. 19 /CNW/ - Tesco Corporation today announced that it has successfully completed two directional sidetracks on the previously announced test well using the Company's proprietary casing drilling process. Casing drilling represents Tesco's most important research and development project and has the potential to dramatically change the way vertical, directional and horizontal wells are drilled in the future. With casing drilling, wells are drilled without drillpipe. Instead, the well is drilled with standard oilfield casing, which remains in the hole at all times. The drill bit and other downhole tools are retrieved and run by wireline within the casing and latched to the last joint of casing. Since casing drilling eliminates the use of drillpipe, the time required to trip, or remove and reconnect the drillpipe, is also eliminated. In addition, because the casing remains in the hole at all times, the integrity of the wellbore is preserved and many of the problems associated with unscheduled drilling events are eliminated. Tesco believes that casing drilling could have significant worldwide commercial potential. The well was originally plugged back from a total depth of 3040 feet and suspended with cement plugs into the 7 5/8'' casing set at 577 feet. The cement was drilled out to a depth of 633 feet. A directional drilling assembly including bent housing mud motor, measurement while drilling (MWD) system and isolation monel drill collar were deployed on wireline and latched in the lowermost 5 1/2'' casing joint. The bottom hole assemblies were successfully retrieved and re-run on wireline numerous times without having to trip the casing. Hole angle was increased at a programmed 8 degree/100 feet build-rate, to 85 degrees hole angle at 1775 feet measured depth (MD) and true vertical depth (TVD) of 1385 feet. An additional 220 feet of hole was drilled to a final depth of 1995 feet MD. Difficulties were encountered while sliding (drilling ahead without casing rotation) due to the shallow nature of the well (low available string weight) and true 90 degree horizontal was not achieved (final angle was 84 degrees). This situation can also be inherent to the conventional drilling process and is expected to be overcome with tool modifications and well design considerations. The lower open hole interval was plugged back to 1075 feet MD to enable a second directional interval to be drilled. An open hole sidetrack was initiated at 1010 feet MD with hole deviation of 30 degrees. Two attempts were required to initiate the sidetrack and the second leg was drilled to a final angle of 60.5 degrees at depth of 1517 feet MD and 1369 feet TVD. The final wellbore was suspended with a cement plug to 968 feet MD. This suspended wellbore will be used for continued testing of technical drilling and completion services and products. Upon completion of drilling operations, the casing was recovered and inspected to determine any wear or damage. The lowermost 20 joints showed no damage while two upper couplings exhibited some damage. Further examination and testing of this type coupling is planned to ensure that full casing integrity can be maintained throughout the drilling and subsequent production operations. To further evaluate the process for directional and horizontal drilling with casing, Tesco is currently planning and applying for approvals to drill another multi lateral well at its R&D test centre. The well will enable testing of advanced tools and additional casing sizes. Tesco is proceeding with the construction of a trailer mounted drilling rig with top drive for casing drilling purposes. Commercial field trials are scheduled to commence in Alberta in April 1999 on a series of shallow vertical wells.

To: Kerm Yerman who wrote (14901)	1/19/1999 5:05:00 PM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

ENERGY TRUSTS / ARC Energy Trust Releases Year-End 1998 Reserves CALGARY, Jan. 19 /CNW/ - (AET.UN - TSE) - ARC Energy Trust (the ''Trust'') announced today the results of its year end reserve evaluation effective December 31, 1998. The Trust's drilling, development, acquisition and divestment activities replaced 101% of its 1998 production at a net effective cost of $3.06 per barrel of oil equivalent (''boe''). Company Interest Reserves ------------------------- Proved Plus Proved Risked Plus Proved Probable(x) Probable ------ ----------- -------- Oil (million barrels) 22.8 27.9 33.0 Gas (billion cubic feet) 103.6 121.9 140.3 NGL's (million barrels) 6.5 7.1 7.7 Oil Equivalent (million barrels) 39.7 47.2 54.8 (x)Probable reserves risked at 50 percent. Reserve Reconciliation ---------------------- Proved Plus Risked Probable Reserves at December 31, 1997 47,120 Mboe 1998 Acquisitions 3,533 Mboe 1998 Dispositions (2,435) Mboe 1998 Production (3,732) Mboe Drilling / Development and Revisions 2,670 Mboe Proved Plus Risked Probable Reserves at December 31, 1998 47,226 Mboe Reserve Replacement Costs ------------------------- - 1998 acquisitions increased the Trust's reserves 3,533 Mboe at a cost of $14.8 million ($4.20 per boe); production increased 580 boe/d ($25,700 per boe/d). - 1998 dispositions reduced the Trust's reserves 2,435 Mboe for a price of $14.5 million ($5.97 per boe); production decreased 270 boe/d ($54,200 per boe/d). - Net acquisitions in 1998 increased the Trust's reserves 1,098 Mboe at a net cost of $0.3 million ($0.29 per boe); production increased 310 boe/d ($1,030 per boe/d). - The Trust's major development activities in 1998 included drilling, completions and well tie-ins in House Mountain, Meekwap, Midale, Pembina and Niton. Total capital expended in 1998 was $11.2 million which resulted in reserve additions including revisions of 2,670 Mboe ($4.19 per boe). - Total reserve replacement costs in 1998 including net acquisitions, drilling, development and revisions was $3.06 per boe.