Oiltec Confirms Major Gas Discovery
Oiltec Resources Ltd. and operator Impact Energy Inc. have drilled a second well at Laprise, British Columbia (formerly called Bubbles). Well logs indicate the new well compares favorably to the successful discovery well reported in September. McDaniel & Associates, Oiltec's independent evaluation engineers, have assigned gross proven reserves of 10.4 billion cubic feet ("bcf") of sales gas plus an additional 4.2 bcf of probable reserves to the original discovery well. Using the industry standard 6:1 boe conversion (6 thousand cubic feet of gas equals 1 barrel of oil equivalent), the proven reserves additions from the discovery well alone (693,333 boe net), replace 177% of Oiltec's entire corporate production forecast for 2001 (390,000 boe).
Gathering and processing infrastructure is scheduled for installation around year-end. The first two wells are scheduled to be on production early in the new year. Initial production rates are estimated to be 3.0 million (1.2 million net) cubic feet of gas per day per well or 500 (200 net) boe/d per well.
A third Laprise well was spud on October 21st and a fourth location is scheduled for drilling in the first quarter of 2002. Three additional development locations are scheduled for drilling in the summer of 2002.