Kinloch Acquires Access to 3-D Seismic in Central Alberta

Kinloch Resources has reached an agreement whereby it has access to approximately 500 square kilometers of high quality 3-D seismic data in Central Alberta where Kinloch is concentrating its exploration efforts. The terms of the agreement include the payment of a gross over-riding royalty on wells drilled and a best efforts drilling commitment over three years. Kinloch expects to generate numerous drilling opportunities from the seismic database.

Kinloch has completed its winter drilling program and has successfully fulfilled all 2003 and 2004 flow-through obligations. Three cardium oil wells were drilled at Pembina (100%WI), one glauconite gas well at Alderson (75%WI), one belly river gas well at Milo (60%WI), two wells that will be abandoned at Milo (60%WI) and one standing gas well that may prove uneconomic at Eaglesham (35%WI). Delays in drilling have led to lower production than anticipated at approximately 800 boe/d, including the recent Pembina wells. Milo is expected to be on stream in April and Alderson in June upon completion of a plant expansion.

Not including the above mentioned seismic deal, Kinloch has spent approximately $1.5 million during the past few months on land and seismic and, as a result, has an inventory of 10 drilling prospects, eight of which are defined by 3-D seismic. Kinloch anticipates the wells will be drilled in 2004.

Mr. Warren R. Pearson has joined the firm as Senior Geophysicist. He is a successful finder of oil and gas and was recently employed by a major oil company.
Company: Kinloch Resources Inc. more info
 - Kinloch Acquires Access to 3-D Seismic in Central Alberta (Mar 12)