San Telmo to Drill 2nd Well in Teepee Creek Program

San Telmo Energy will commence drilling the second well on its Teepee Creek land by July 1, 2004. The company has a 100% working interest in this well which is in the Peace River Arch area of Canada.

San Telmo's second well at Teepee Creek, called the 6-3 well, immediately offsets the gas discovery at the original 4-10 Teepee Creek well. As reported in a press release on January 21, 2004, the 4-10 well tested at a stabilized flow rate of 1.3mmcfd (217boe/d) on a 3/8" choke.

The 6-3 well is targeting a southeast extension of the productive Charlie Lake erosional edge, which was established in the original San Telmo 4-10 discovery.

Preproduction pipeline route planning has been completed on the 4-10 well in preparation for surveying and construction, which will begin after the results of the second well are known.

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