Omax Resources to Bring Second Big Lake Well Onstream

Omax Resources revealed that flow tests at the second well at Big Lake located in Alberta, Canada indicate rates equivalent to or better than the original 6-25 well that had an initial flow rate of 1,100 barrels of oil per day.

The operator of the Big Lake field has advised Omax that this well will be tied into production within the next few days and longer interval flow rates will be available shortly. They have also advised Omax that in order to optimize recoveries from the reservoir sustained production from the two wells is expected to be approximately 1,000 barrels of oil per day.

Sproule Associates have undertaken an independent reserve report and estimate proven plus probable reserves as of January 1, 2003 of 1 million barrels of oil gross, 145,000 net to the company. The drilling of this second well further confirms these reserves.

The well which came in only 2 meters lower than the producing 6-25 well penetrated the top of the Devonian Leduc formation. This second well was drilled along the crest and at the interpreted top of the structure defined by 3D seismic.

The company has a 15% Gross Overriding Royalty on this production.