EnerNorth Participates in Deep Test Well
|Tuesday, September 30, 2003
EnerNorth Industries' Oil & Gas Division is participating in a 3,200 meter (approximately 9,700 feet) Wabamun formation gas test well by paying 24% of costs to drill to earn a 24% interest before payout (subject to a 5-15% sliding scale convertible royalty) to earn a 15% working interest in 9 sections (5,760 gross acres - 864 net) of multi formation prospective lands. EnerNorth also agreed to a 15% working interest in a 20 section (12,800 gross acre) Area of Mutual Interest around the test well area.
The Doe Prospect in Alberta is located within the Peace River Arch area of Canada's Western Sedimentary Basin and approximately 10 kilometers (km) east of the Alberta-British Columbia border and 120 km's northwest of Grande Prairie, Alberta. The Prospect lands are situated about 20 km's equally between two significant natural gas accumulations associated with the Upper Devonian Wabamun Group.
The Parkland, British Columbia Wabamun 'A' pool was discovered in 1956 and was estimated to have original gas in place of 225 Billion Cubic Feet (BCF). To date, the Parkland discovery well has produced 109 BCF of gas. In Alberta, the Gordondale area is a more recent discovery for natural gas associated with the Wabamun formation. Since 2000 there has been six Wabamun pool discoveries ranging in size from 5 BCF to 25 BCF with initial production rates between 5 Million Cubic Feet Per Day (mmcf/d) and 15 mmcf/d.
The Geological Survey of Canada describes the Wabamun formation in the Peace River Arch area to be a remedial ramp carbonate that has undergone hydrothermal dolomitization. The dolomitization is a result of magnesium rich fluids moving along major fault trends associated with the Peace River Arch rift basin. These dolomitized areas are the primary reservoirs for natural gas fields in the Doe Prospect region. Faulted horst structures provide the dominant trapping mechanism for gas accumulations.
"We are most pleased with the opportunity to participate in this high impact test well. The northern border region of Alberta and British Columbia can be prolific and can also be challenging. Our partner and operator is a large privately held oil and gas producer with extensive experience in the area. We are impressed with the magnitude of science and geophysical technology applied to this multi formation prospect,' said Sandra Hall, President of EnerNorth, 'and look forward to adding Doe East to our areas of production."