Kinloch has completed its winter drilling program and has successfully fulfilled all 2003 and 2004 flow-through obligations. Three cardium oil wells were drilled at Pembina (100%WI), one glauconite gas well at Alderson (75%WI), one belly river gas well at Milo (60%WI), two wells that will be abandoned at Milo (60%WI) and one standing gas well that may prove uneconomic at Eaglesham (35%WI). Delays in drilling have led to lower production than anticipated at approximately 800 boe/d, including the recent Pembina wells. Milo is expected to be on stream in April and Alderson in June upon completion of a plant expansion.
Not including the above mentioned seismic deal, Kinloch has spent approximately $1.5 million during the past few months on land and seismic and, as a result, has an inventory of 10 drilling prospects, eight of which are defined by 3-D seismic. Kinloch anticipates the wells will be drilled in 2004.
Mr. Warren R. Pearson has joined the firm as Senior Geophysicist. He is a successful finder of oil and gas and was recently employed by a major oil company.
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