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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: Scotchman who wrote (1075)	3/15/1999 6:47:00 PM
From: Flea	Read Replies (1) \| Respond to of 1207

TUSK Energy participates in gas discovery TUSK Energy Inc TKE Shares issued 10,466,584 1999-03-12 close $0.74 Monday Mar 15 1999 Mr. Norman Holton reports The company has participated in a gas discovery in central Alberta. The well, drilled in January/February 1999, flowed gas from two separate zones at a total rate of 4.7 million cubic feet per day at low drawdown (20 per cent). The gas from each zone contains recoverable natural gas liquids estimated at 16 barrels per million cubic feet. The well has been dually completed and preparations are under way to tie-in the well to a plant approximately one-quarter mile away. Initial production rates are expected to be limited by plant capacity to four million cubic feet per day, of which the company's net would be 1.26 mmcf sales gas and 20 barrels of NGL per day. The company has a working interest of 33.33 per cent in the well and in one additional undrilled section of land near the discovery. At Meekwap, the company has received approval for an expansion of the waterflood area and the Meekwap 4-21 discovery well, drilled last April, has now been included in the approval area. Up to Nov. 6, 1998 the well averaged 1,409 barrels of oil equivalent per day with no water production. The 4-21 resumed production on Feb. 7, 1999 after being shut-in for three months pending approval of the waterflood expansion. The average rate since that date has been 1,900 barrels of oil a day, two mmcfd (2,100 gross, 370 net boe/d) with no water production and cumulative production has now exceeded 300,000 barrels of oil equivalent. Also at Meekwap, a six square mile seismic program has been shot in an area from one to four miles to the east of the 04-21 discovery. The survey is currently being processed. The survey covered 3.5 sections of land in which the company has an average 62 per cent working interest (2,240 gross, 1,390 net acres). At Strachan, the 2-22 discovery well (10 per cent plus 15 per cent overriding royalty on 40 per cent before payout, 30 per cent after payout) is expected to commence production of gas from the Swan Hills zone during the second quarter. Initial gross production rate is expected to be in the order of five mmcfc. The company's net production from the well, including volumes attributable to overriding royalty before payout, will be approximately 650 thousand cubic feet per day of sales gas. Delays in the tie-in of this well were caused by negotiations with the plant operator regarding pipeline construction. A twin well at Strachan, in which the company will have a 10 per cent working interest and a 15 per cent non-convertible overriding royalty on 40 per cent will be drilled in the next few months. The new well, which will access the uphole Mannville reserves indicated during the drilling of the 2-22 well is expected to add five mmcfd of raw wet gas production (net 650 mcfd sales gas and 12 b/d NGLs including royalty volumes). The company's production in February 1999 averaged 820 barrels of oil equivalent a day (85 per cent oil, 15 per cent gas). During the second quarter, both the company's commodity mix and production will improve significantly when the dual zone gas discovery, the Strachan Swan Hills gas and the Strachan Mannville gas are on stream. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com