Drilcorp Begins Drilling Operations at Crossfield

Drilcorp Energy reports that Bear Rig 4E is now rigged up on the Crossfield 13-23-27-29W4 location north of Airdrie, Alberta in preparation for commencement of horizontal re-entry drilling operations. Drilcorp holds an operated, 77.5% working interest in the 13-23 well, which targets the Crossfield member of the Wabamun interval. The well is located north of the City of Airdrie on the southern extension of the Crossfield East gas unit and targets a suspected porosity connection between the Crossfield gas units located north and south of Airdrie. The adjacent Wabamun gas reservoirs have together produced in excess of 2,000 billion cubic feet ("Bcf") of sour gas from the Crossfield member during the period 1964 to present. Offsetting well 10-22, located 1,000 metres west and 300 metres south of 13-23, is producing 1,500 thousand cubic feet per day of sour natural gas and has produced in excess of 15.4 Bcf of raw gas and 69 million barrels of condensate from 1984 to present.

After completion of a casing inspection log and pressure integrity test, horizontal drilling operations will commence to intersect an amplitude anomaly in the Crossfield member located near the south western edge of the well's gas spacing unit, defined on new seismic recently shot by the Corporation. Drilling operations are expected to be completed in eight days and the drilling rig will be used to complete the well in one continuous operation. The well is presently equipped and pipeline connected to the Balzac gas plant located south of Airdrie.
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