Canadian 88 Energy Announces Blackstone Results

Canadian 88 Energy Corp. has successfully completed and production tested a significant deep natural gas well in Western Alberta. The well, located at 4-10-45-16W5, is a major step out into the prolific Blackstone Devonian Swan Hills gas pool.

The Blackstone pool, located 150 miles northwest of Calgary, was discovered in 1984 and has produced 416 Bcf of sales gas from four wells to date and has an estimated 384 Bcf of sales gas remaining. Three wells are currently on production in the pool, ranging in production rate from 27 MMscf/d to 44 MMscf/d. Canadian 88 as operator, has a 37.5 percent working interest in the well.

Flow rates during the production test were restricted by the terms of the flaring permit. The well readily flowed at the maximum allowed rate of 9.8 MMscf/d on a 40/64 inch choke size with a flowing tubing pressure of 1,676 psi and only 4% bottom hole pressure drawdown. From this test data the production rate at the gathering system pressure is estimated to be 30 MMscf/d. The well flowed for three days on test and as has not yet recovered all of the completion fluid. The production rate after cleanup is expected to be higher than the current estimated rate.

The well confirms the company's Swan Hills reservoir expertise where three additional high impact Swan Hills prospects at Ram, Raven, and Cremona are planned to be drilled in the near future. A second well at Blackstone is also planned for 2002.

The 4-10 Blackstone well is scheduled to be tied in and put on production by February 2002. Due to restrictions in the existing gathering system, production will initially be limited to a rate of 10 MMscf/d. The well will reach its full production rate by late 2002 when expansion of the gathering system is completed.