Basic Earth Drills Dry Hole in Saskatchewan

Basic Earth Science Systems, Inc. reported that its first exploration effort in Canada was a dry hole. The Freestone 46C-18-9-6, operated by Zinke & Trumbo Canada Corp, was plugged and abandoned after reaching a depth of 8,010 feet. The well encountered excellent Red River formation porosity, but drill stem test results indicated that the formation was not oil bearing. Approximately 40 miles northeast of Estevan, Saskatchewan, the well was 14 miles east of Red River production in the Hartaven field. Basic's ownership in the well was held by Legent Resources Corporation (Legent), its wholly-owned Canadian subsidiary. Legent had a 12.5% interest in this well. Basic estimates that its share of the dry hole cost will be approximately US$55,000.

"We are disappointed by the results of this test, yet remain optimistic of the Saskatchewan venture," explained Ray Singleton, the company's president. "While we complete the "post-mortem" on this initial effort, we continue to finalize plans to drill two additional exploration wells, hopefully in the next quarter."