GULF CANADA DISCOVERY
|Tuesday, August 10, 1999
Gulf Canada Resources Limited reports a natural gas discovery at the Gulf operated Q4-9 exploration well on the Q4 Block located offshore in the Dutch sector of the North Sea. Gulf Canada Resources, through its wholly owned subsidiary Clyde Petroleum Exploratie B.V., currently holds a 49.75 per cent interest in the block. The Q4-9 well is 6 kilometers northwest of a 1998 discovery on the Q4 Block. The well tested 26 and 28 million cubic feet of gas per day from two separate zones in the Triassic, both at export pressures. The Q4-8 discovery well drilled in 1998 tested 27 mmcf/d from the Triassic. Gulf, on behalf of the Q4 group, is currently obtaining a production license for both discoveries. Start of production is targeted for year-end 2000. Partners in the Q4 Block are Dyas B.V. with a 17.25 per cent interest and Clam Petroleum B.V. (a 50/50 joint venture between Marathon Petroleum Netherlands, Ltd., which is a wholly owned subsidiary of Marathon Oil Company,and LL&E (Netherlands) Inc., which is a wholly owned subsidiary of Burlington Resources Inc.) with a 33 per cent interest. The State has a right to acquire a 40 per cent interest through Energie Beheer Nederland B.V. under standard ``back-in'' provisions.