|Mon Mar 6, 2000|
Finalized Negotiations to Drill 2600 Foot Well
| ||The Company wishes to announce that it has finalized negotiations to drill a 2600 foot well located in central Alberta. This well is targeting a 23 - 44 foot bypassed sandstone strata that is estimated (by seismic and electric drill logs on a wellbore located 300 feet from our proposed well location) to contain approximately 800,000 barrels of medium crude oil, and/or liquid rich natural gas. The operator is anticipating daily production in the 100-150 barrel per day range. The oil lease that the above target well sits in has sufficient spacing to allow another well to be drilled if the target well is successful. A second well is expected to double potential daily production to 200-300 barrels per day and producable reserves to 1.6 million barrels. |
Mount Dakota will fund the entire cost of the target well, and will receive 85% of the revenue off this well until it has recovered 110% of it's drilling and completion costs. At that time, the arms length private vendor of the oil lease will "back in" for a total interest of 50%, leaving Mount Dakota with a 50% revenue and property interest.
The Company would also like to announce that the Floyd #1 well, originally intended to be drilled in early January will begin drilling on March 7th , 2000. The drilling of this well was delayed to allow a large U.S. oil company to participate. The Company has a 10.25% working interest in the Floyd #1, and the 2400 acre oil lease that it sits on. The Company has 50% working interests in the adjacent northern leases which total approximately 10,000 acres, and 25% working interest in the adjacent property to the south which contains the Company's Siverson 1-X Well which has produced over 1.2 billion cubic feet of gas in the past year.
On behalf of the Board of Directors
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the contents of this news release.
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