Devlan Drills New Discoveries in Alberta
|Tuesday, January 11, 2005
Devlan Exploration has made three significant new pool discoveries. Preliminary testing indicates there to be an aggregate of 825 (800 net) barrels of oil equivalent per day "boe/d" behind pipe. Since November a total of eight (4.9 net) wells have been drilled in northern Alberta with a net success rate of 70%. The majority of this production is natural gas and is expected to be on production during the first quarter.
In the Gold Creek area, just fourteen kilometers southeast of Grande Prairie, Alberta, Devlan drilled a new pool wildcat discovery in the Triassic Halfway formation. This zone is a well-documented producer of both oil and natural gas on the Peace River Arch. The discovery well at 14-32-69-4W6M tested and flowed at rates of up to 163 E3m3/d (5.75 MMcf/d) of liquids-rich natural gas, during a series of flow and buildup periods. The Company currently owns 100% working interest in 3,840 acres of Crown P&NG rights that covers the structure. The first delineation well was spudded on January 6th, 2005 and is currently drilling ahead.
Devlan drilled another new pool discovery in the highly productive Peace River Arch area at Clear River/Hill, located 145 kilometers northwest of Grande Prairie, Alberta. The 100% discovery well at 102/13-01-86-11W6 was drilled to the lower Triassic Montney formation and is currently producing 40(degrees) API oil at rates of between 25 and 35 bopd. In addition to the Montney prospect, management has identified a number of other multi-zone opportunities. The Company currently owns 7,040 (5,760 net) contiguous acres in this greatly prospective area and is presently participating in an area 3D seismic program to define this additional potential even further. The first delineation well in the Montney formation is expected to be spudded in February with the exploratory wells to follow in March of 2005.
In Marten Hills a new pool discovery at 11-21-74-3W5M will significantly enhance this core area's continued expansion. Located within the Company's existing field, this 100% well is the second of four wells already drilled in a recently expanded 14 well drilling program. The Wabiskaw formation, which has historically proven to be very prolific in the area, was the primary target and is expected to be on production within the month. The Company acquired 7,680 (7,680 net) undeveloped acres in the greater Marten Hills area during 2004 in a successful drive to broaden its presence in the field.