|Wed Dec 6, 2000|
Garrington 2 Well Hits Oil and Gas
| ||Mr. Gary Claytens reports Preliminary testing has been completed on the new Garrington No. 2 horizontal re-entry well located 50 miles north of Calgary, Alta., and two miles to the west of the company's successful Garrington No. 1 well.|
The tests confirm that this well has encountered significant hydrocarbons, in the form of high-grade crude oil, natural gas and condensates. The most recent test flow indicated a daily production rate of 100 barrels of oil per day, and over 300,000 cubic feet of natural gas per day. The well is still clearing out the massive amount of water that was injected into it during the re-entry and completion phase and therefore the company expects that the natural gas rate will gradually increase over the next month as the drilling fluid is removed.
The well operator has submitted the necessary permitting in to the Alberta government to build the connecting pipeline which will enable the oil, gas and condensates to be injected directly into the nearest refinery pipeline which is located less than a mile away. While the operator is awaiting approval on the branch pipeline, the partners in this well have agreed to immediately begin producing the oil component of the well, and flare the natural gas for a couple weeks while the natural flow of hydrocarbons clears out the drilling fluid from the reservoir.
The company will make public announcements when the Garrington No. 2 is hooked up to the production pipeline and its flow rate has stabilized. The company has a 25-per-cent working interest in this well which will revert to 12.5-per-cent interest once all costs have been recouped.
For further information please see our web site at www.mountdakota.com or call our investor relations firm; Panstar Capital Corp., at (604) 662-3004 or 1-888-957-0398.
On Behalf of the Board
You can view the Next News Releases item: Mon Jan 29, 2001, LETTER OF INTENT SIGNED FOR FIVE WELL NATURAL GAS PROJECT
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