press release

Chevron Press Release - Chevron Tests Ft. Liard M-25 Gas Well

This is news concerning Chevron but issued by a Chevron subsidiary, Chevron Canada Resources, and archived here for record purpose

Ft. Liard map

CALGARY, Jan. 18, 2000 -- Chevron Canada Resources and partners today announced completion of the production test on Chevron's Fort Liard natural gas well (M-25) located about 18km northwest of Fort Liard, Northwest Territories. M-25 is Chevron's second well drilled in the area following successful results of their K-29 well drilled in the spring of 1999.

The M-25 well, drilled to a total depth of 3770 metres, tested natural gas in the Nahanni zone at a restricted flow rate through a 3.5 inch tubing string of 28 million cubic feet per day (760 E3m3/d) at the end of a four day test period. Based on the test data, the expected producing rate from this well is estimated to be 50-75 million cubic feet of raw gas per day. Over the next several weeks, Chevron will further evaluate the well to determine the most commercially optimal producing rate. M-25 is estimated to be on production sometime in the fourth quarter, 2000.

The well was drilled 30 days ahead of schedule and cost approximately $9 million, ten per cent under budget.

Over the next three months, Chevron and partners will construct a 32km pipeline and associated well site facilities to bring its natural gas discovery at its K-29 location to market by May 2000. The producing rate of K-29 is expected to be approximately 75 million cubic feet per day. The pipeline will bring this natural gas to an existing pipeline at Pointed Mountain, NWT and onto processing facilities at Ft. Nelson, British Columbia where it will enter the main sales gas system.

Interests in the M-25 and K29 well include Chevron, as operator (42.4318 percent); Purcell Energy Ltd. (24 percent); Berkley Petroleum Corp.(21 percent); Anderson Resources (4.1 percent); Paramount Resources Ltd.(2.7602 percent); Temagami Oil & Gas Ltd. (1.23764 percent); Ranger Oil Limited (1.197 percent); Canadian Natural Resources Inc. (0.90736 percent); Numac Energy Inc.(0.82 percent); AEC West Ltd.(0.336 percent); Talisman Energy Inc. (0.21 percent).

Updated: January 2000