Bow Valley Energy Ltd. announces an update on its international operations.
Production for the fourth quarter of 2007 was approximately 4,300 boe/d. Due to the timing of lifting oil shipments, the sales volume for the fourth quarter is expected to be approximately 3,600 boe/d up approximately 93% from sales of 1,867 reported in the previous third quarter 2007. The remaining fourth quarter volumes are held in inventory pending future liftings and sales in 2008.
New production additions are expected over the next six months from field developments at Chestnut and Ettrick. At the Chestnut field, the Sevan Hummingbird production facility was anchored on the field location in December 2007. The subsea wells will shortly be tied to the facility with flexible risers and first oil is expected in the second quarter of 2008. Drilling and completion of the Ettrick field development wells is continuing. The Aoka Misu FPSO is undergoing hook-up in the Sembawang shipyard, Singapore, with delivery anticipated in the second quarter. First oil production is forecast around mid year 2008.
The 9/28b-19A exploration well, operated by Bow Valley Petroleum (UK) Limited (37.5%) on behalf of partners Marathon Oil U.K. Ltd. (37.5%) and Vaalco UK (North Sea) Limited (25%), was drilled to a total measured depth of 12,726 feet. The well penetrated a thick sequence of Upper Jurassic Brae Formation sandstone reservoirs, the top of which encountered 105 feet of gross oil column. Formation pressures and fluid samples were acquired during a TD wireline logging programme. The potential reserves associated with this discovery are smaller than anticipated and the well has been suspended pending further evaluation or possible development in conjunction with other activity in the area. Bow Valley was carried for the majority of its costs in the drilling of this well.
During the 2007 winter drilling season, Bow Valley (20% interest) participated in drilling a new pool discovery with the Northshore No.1 well. This well penetrated potential oil pay in the Sag and Ivishak Formations but the joint venture group was unable to complete the well before the 2007 winter drilling season came to an end. The well bore was drilled to 13,319 feet total measured depth. Casing was run in the well to approximately 12,500 feet measured depth and suspended for re-entry during the 2008 winter drilling season. A drilling rig is now on location to complete and test both the Sag and Ivishak formations.
After the completion and testing of the Northshore No.1 well, the joint venture group will move the drilling rig southwest to drill an exploration well, Tofkat No.1, situated east of the Village of Nuiqsut along the east side of the Colville River and on trend to the Nanuk oil field. Dependent on encouraging results from the Northshore No.1 completion and/or the results from the Tofkat No.1 well, the joint venture group are prepared to drill up to two additional exploration wells during this 2008 winter drilling season. In addition, the group currently has a seismic crew active on the North Slope of Alaska acquiring new 3-D seismic data on or around the groups extensive landholdings.
R. G. Moffat, President and CEO of Bow Valley stated: "The Company's underlying production remains steady and continued volume growth is forecast from the addition of the Chestnut and Ettrick fields within the next three to six months. It is also exciting to have such an active exploration program added to this level of activity. Between the U.K. North Sea and the North Slope of Alaska, Bow Valley will participate in drilling at least four to six exploration prospects within the next six months. The Company's exploration strategy is to participate in a multi-well, multi-year portfolio of prospects that should be financed by the Company's growing production base. It is gratifying to see the Company successfully execute on its business plan.">
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