Cascade has acquired a 25% working interest in a very prospective Kansas oil and gas play that includes a large database of a geophysical survey encompassing approximately one million acres, located in central Kansas. Total cumulative oil production through 1999 from this region is more than 978 million barrels of oil.
Oil wells will be drilled to test the most promising prospects to the deepest known petroleum formation, the Arbuckle, generally less than 4000' in depth in the Central Kansas Platform. Drilling costs have been estimated to be in the order of $200,000 for a cased and completed well. Cascade and partners are proceeding to further evaluate the most prospective oil and gas drill targets utilizing geochemical and geophysical methodologies in the field-testing. The operator is now recommending leases for acquisition and the exploration program will commence shortly.
Cascade has acquired a 49% working interest in the Bolloque Project, a Leduc Oil Play, and has advanced funds in full to the operator totaling $450,000 to drill and complete an oil well on the leases. The prolific oil producing Leduc area from "reef" oil fields south of Bolloque contain oil wells that produce at rates of several hundred barrels per day and also wells that have cumulatively produced over one million barrels. Of the 680 oil wells drilled in D-3 pools, the production has been between 145 and 400 barrels per day with pay thickness of between 35 to 142 feet. Cascade has acquired what the Company believes is an analog to the Leduc field and will be drilling its first well shortly.
Cascade has evaluated the results of the 5,000-foot "Coyote Creek #1" natural gas test well located at the northern end of the Sacramento Basin in Tehama County, California. Gas shows were present on logs over significant intervals; however, the sands did not contain sufficient permeability and porosity to produce gas at economic rates. The well has been plugged and abandoned. Cascade is now reviewing the options for the Company as to any potential continued exploration on the project.
ABOUT CASCADE ENERGY
Cascade is an explorer for natural gas and oil with a head office in Sacramento, California, in the heart of California 's gas country. The primary objective of Cascade is to acquire, discover, upgrade and expand North American oil and gas reserves towards near-term production and cash flow, together with identifying and participating in exploration opportunities. By maintaining a balanced debt and equity mix, Cascade's operating strategy is to become cash flow positive in the short term to allow the Company a re-investment of production dollars to enhance and grow company assets. By searching and identifying exploration and producing properties that fit the company's investment and production criteria, Cascade has formulated a strategy to prioritize assets that provide low risk, short payback period and long life reserves.
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