Chevron Press Release - Poco Petroleums Ltd. And Chevron Canada Resources Announce Exploration
This is news concerning Chevron but issued by a Chevron subsidiary, Chevron Canada Resources, and archived here for record purposes.
CALGARY, July 22, 1999 -- Poco Petroleums Ltd. and Chevron Canada Resources today announced that they have entered into an exploration farm in and joint venture to conduct exploration in west central Alberta and north east British Columbia.
The farm in and joint venture covers the West Kaybob area of Alberta and the Maxhamish area in northeastern British Columbia covering approximately 400,000 net acres of Chevron undeveloped lands. Poco also has an additional 130,000 net acres of undeveloped land in the joint venture areas.
Poco's initial commitment is to drill 16 wells over the next two years through which Poco will earn an interest in the Chevron lands, with an option to continue with the program for a third year.
The farm in and joint venture is unique in that both Poco and Chevron will commit technical resources and 16,000 kilometres of two-dimensional seismic plus 1100 square kilometres of three dimensional seismic to the exploration program. The alliance will expand Poco's focus on deep exploration for natural gas that began two years ago which was enhanced through the acquisition of Pan East Petroleum Corp. in the later part of 1998.
Craig Stewart, Poco's President and Chief Executive Officer said, "This is a unique opportunity to team up with one of the industry's leading explorers as demonstrated by their recent success at Musreau, in the West Kaybob, area while enhancing Poco's strategic focus on deep gas exploration." Stewart added, "Poco is well positioned in some of the most exciting exploration plays in Canada."
Jim Simpson, President of Chevron Canada Resources said, "This new venture with Poco resulted from a very selective process where we chose our partner carefully. We look forward to combining our data and technical expertise with Poco and extending the positive work we have already begun together."
Poco's plans for this fall and winter would see eight of the Chevron commitment wells drilled. Five of the commitment wells would be in the West Kaybob area with the other three wells at Maxhamish.
This program, combined with Poco's internal deep gas prospects, would see six drilling rigs running throughout the fall and winter exploring for deep natural gas. Production that is developed through the West Kaybob exploration program would be brought on quickly through the company's interest in the K3 gas plant.
Updated: July 1999