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Gold/Mining/Energy : PEL - Purcell Energy -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (16)	4/8/1999 2:38:00 PM
From: Chispas	Read Replies (1) \| Respond to of 165

Hi Rick, Chevron has probably put a squelch on the news. If there are some leaks, Stockhouse may be the best source. We'll watch. Just wait'n, Chispas

To: Salt'n'Peppa who wrote (16)	4/8/1999 3:06:00 PM
From: RIK	Read Replies (1) \| Respond to of 165

Rick.... PEL released a more detailed report at their website PURCELL ENERGY DRILLING UPDATE FORT LIARD - APRIL 7, 1999 On February 3, 1999, Chevron Canada and its partners commenced drilling the K-29 high-impact well on Purcell's 11,000 acre property at Fort Liard in the southwestern Northwest Territories. The well was initially expected to take four months to reach total depth but excellent progress was made and drilling ended up two months ahead of schedule. Intermediate casing was successfully set and drilling in the Nahanni formation proceeded smoothly. In late March the well reached a total depth of 3000 metres. The well was logged and based on that information the decision was made to proceed directly to completion. The well is currently being completed in the Nahanni formation for production. Over the next two to three weeks the well will be production tested. The test program has been designed to provide the best information possible regarding potential flow rates and reserves. Further activity on the Fort Liard property will be determined based on the K-29 test results. The K-29 location is based on interpretation of a 60 km2 3D seismic survey conducted over the property in August, 1998. Chevron and its partners constructed a 29 kilometre road from the town of Fort Liard north to the well location, which will permit year round access (except during spring breakup) using an ice bridge during the winter and barging in the summer. Under the terms of the farmout agreement Chevron and its partners will pay 100% of Purcell's cost of the well (with no payout) to earn 60% of Purcell's interest in the property. Purcell is effectively carried for a 24% interest in the first well and thereafter will participate for its share of further drilling, facilities and pipelining costs. Purcell retains a 60% interest in the original F-25A discovery well. The Chevron et al K-29 well is approximately 1300 metres northeast of the D-29 well drilled in 1980 which Purcell believes contains bypassed gas pay in the Nahanni zone. Purcell's Fort Liard property is a large foothills structure evidenced at surface by an anticline. An independent engineering appraisal assigned gross proved and probable reserves to Purcell's F-25A discovery well of 38 bcf of gas in the Nahanni zone. Seismic data suggests the property has the potential to contain world class gas reserves in the 300 to 700 bcf range. Purcell, its partners and other operators in the Fort Liard area have formed a producers group for the purpose of designing and building a jointly owned pipeline and gathering system. A number of transportation options are under consideration. Engineering and environmental work is being completed to facilitate the early submission of a pipeline application for regulatory approval. It is the objective of the producers group to obtain construction permits by August, 1999. Production from the Fort Liard project is targeted to commence in April, 2000. Purcell is currently producing approximately 1200 BOE/d split 56:44 between oil and gas. In north central Alberta, an oil discovery in late 1998, in which Purcell has a 30% interest, has added in excess of 120 bbls/d (net) of light oil production from two wells. A third well was completed in late March, 1999 and has added 30 bbls/d (net). A number of tie-ins on Purcell's Ells gas property this winter will boost production to 1.35 mmcf/d (net). The Corporation is pursuing a number of strategic acquisitions to take advantage of currently depressed conditions in the oil and gas industry. Capital expenditures for 1999 are presently budgeted at $5 million (excluding capital costs at Fort Liard subsequent to completion of the K-29 well).