Drilcorp Energy has completed the acquisition of
an operated, 45.5% working interest in a Viking oil and gas property in
exchange for release of security held against the property. The Bulwark
property, located approximately 12 km east of Castor in central Alberta, has
produced a total of 364,000 barrels of 38 degree API sweet crude oil and 2.1
billion cubic feet of natural gas in the Viking interval from 1978 to present.
The property is today producing approximately 28 barrels of sweet light crude
oil and approximately 385 thousand cubic feet of natural gas per day,
representing approximately 92 boed gross on a combined basis, from six wells
re-activated during November and December. A total of eleven wells and 2,080
gross acres of P&NG mineral lands were acquired in the acquisition. The
Corporation is proceeding with surface rights and regulatory approvals to
allow re-entry of a tested but abandoned well in the field and plans to drill
at least one infill well during the 2004 winter period. Drilcorp has not yet
re-initiated the waterflood in the oil pool to allow technical evaluation of
all wells prior to re-pressuring the reservoir.
The Corporation also holds, or has otherwise acquired, an operated,
92.75% working interest in two standing wells and an additional 1,440 acres of
P&NG mineral lands immediately offsetting the Bulwark lands. These standing
wells are now scheduled for recompletion to the Viking interval for testing,
evaluation and production, if successful, during January, 2004.