|Mon Mar 1, 1999|
Acquisition of Oil & Gas Leases
| ||The Company is pleased to announce that it has acquired a 50% working interest in oil & gas leases totaling over 8000 gross acres contiguous with the Company's 1998 Siverson discovery well property. The new acreage consists of two prospects, the "Wheatland" and the "Dryland", which lay on a seismically defined Morrow Sandstone structure, the source for the Siverson discovery well which is currently flowing gas into the recently completed pipeline. (February 23 news release) |
The Dryland property has been paid for in cash, and a deposit has been placed on the Wheatland property with the remainder expected to be paid shortly. The acquisition of the two new properties significantly enhances the Company's exposure to this prolific Morrow Sandstone trend on the Kansas/ Colorado border. The addition of these two new properties now virtually connects all of the Company's properties in this area, including the Towner Prospect located eight miles northwest of the Siverson discovery well, which has a shut-in well drilled last summer testing 6.7 million cubic feet per day. With the recent completion and start-up of the pipeline to the Siverson discovery well, the entire group of oil & gas leases are now potentially within hook-up distance, making any future completed wells on the leases highly economic. The Company now has working interests of 25% and 50% in approximately 16,000 acres straddling the Morrow Sandstone trend on the Kansas/Colorado border. The Company is continuing to evaluate seismic and geologic data on all these properties in advance of drilling a series of new wells.
On behalf of the Board
S. John Kim,
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this press release.
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