American Leduc Makes Discovery in Snowfall Area in Alberta
American Leduc Petroleums Limited reports that two recent Slave Point exploratory wells in the Snowfall area of Alberta have been cased as potential gas wells. Completion operations are expected to commence within the next week with production from these wells expected within the next two months. American Leduc's working interest in these wells is 25% (reducing to 12.5% after payout in one well). As a result of drilling these two wells, the Company has earned working interests of between 12.5% and 25% in four sections of land with the opportunity to earn interests in an additional six sections by drilling additional wells. As a follow-up to these discoveries, American Leduc will be participating in a 14 square mile 3-D seismic program in the prospect area.
West of Snowfall, in the Reindeer/Lapp area, the Company will be participating in the drilling of an exploratory gas well also targeting the Slave Point Formation. American Leduc will pay 25% of the costs of the test well to earn a 25% before payout working interest (12.5% after payout). The initial well earns a 12.5% working interest in two sections of land, with rolling options covering an additional 12 sections.
At the Liard Basin property, in northeastern British Columbia, the
Company participated in two completion operations on the well at West Patry,
both of which were unsuccessful. The Company has elected to farm-out its
interest in any further completion activities which are pending on a third
zone. The Company now has a 7.5% working interest in 25,000 acres of land in
the area with options to farm-in on an additional 28,800 acres. American Leduc
is currently participating in an 18 kilometer seismic program at Liard to
establish a possible drilling location on land structurally higher relative to
the initial well. Results of the seismic program will not be known until late