|Fri Nov 5, 1999|
Preliminart Results - Garrington Well
| ||The Company wishes to release preliminary results from the recently announced re-entry well in Alberta, which we now call the "Garrington Well". The well re-entered the Pekisko Formation, a tight sand structure that appears to host an economic source of oil and natural gas. After initially encountering significant water with a moderate gas push, the operator free-flowed the well for approximately 72 hours in an attempt to physically remove the water. The gas flow from the well has rapidly tapered down to what appears to be a steady flow rate of approximately 250,000- 400,000 cubic feet per day. The water component contained a water-oil mixture which initially was 95% water and 5% oil, although the oil component was slowly increasing as the water was being removed from the well. The operator believes that the oil cut will increase over time if the well is brought into production, making this a predominately oil well. All of the above figures are preliminary until a final engineering report is produced, the results of which will be made public. Mount Dakota Energy Corp., will have a 50% working interest in the Garrington Well once it has been paid back for the costs of re-entry, and will be responsible for the payment of the provincial royalty on any products produced from this well. The remaining 50% working interest belongs to an arms length private company in Alberta. The company also wishes to announce that a non-brokered private placement of $172,500 will be done in the company. The private placement will consist of a unit containing one share and one share purchase warrant good for two years. The price of the share, subject to Exchange approval, will be $0.25 with the purchase warrant having an exercise price of $0.25 per share in the first year, and $0.30 per share in the second. The total number of units expected to be issued is 690,000. The proceeds of this private placement will be used for oil & gas drilling and for general working capital.|
On behalf of the Board
S. John Kim,
The Canadian Venture 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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