PanCanadian Announces Appraisal Well Results

PanCanadian Petroleum Limited today announced the results of its third Deep Panuke appraisal well, M-79A, drilled offshore Nova Scotia.

During a five-day test, the well flowed at an average rate of more than 63 million cubic feet of natural gas per day and the gas was of similar quality to that tested in prior wells. These rates were limited by the downhole configuration of the test string. The well was drilled to a total depth of 15,105 feet, which was followed by a horizontal sidetrack in the main reservoir section. The horizontal sidetrack encountered 360 feet of net pay. The reservoir is currently estimated at six to eight kilometres in length.

"These very encouraging results from the third appraisal well will allow us to evaluate the overall potential of the Deep Panuke field," said David Tuer, PanCanadian's President and Chief Executive Officer. "The test results are very promising, and further analysis will be conducted to determine the full extent of the field."

The Company expects to make a decision on the commerciality of a stand-alone development of this field by the end of the first quarter of 2001. To assess commerciality, PanCanadian will undertake a detailed analysis of the results of this well and the three previously drilled wells. PanCanadian had announced earlier that the three wells, including the discovery well, each flowed at more than 50 million cubic feet per day during multi-day tests – the maximum capacity of the testing equipment.

M-79A is located about 250 kilometres southeast of Halifax, Nova Scotia and about three kilometres east of the Panuke platform. The Company holds a 100 percent working interest in Deep Panuke.

PanCanadian has also completed the drilling and testing of a new field exploration well on the Scotian Shelf. The F-09 well was drilled into a separate geological structure from the Company's Deep Panuke gas discovery. The well was unsuccessful and was abandoned on November 12, 2000.

PanCanadian's land position offshore Nova Scotia extends over approximately 4.5 million gross acres through interests in 15 exploration licences. The Company has an average working interest of 55 percent and operates 14 of the licences.