Australian Oilfields Produces Initial Oil in South Sumatra, Indonesia; Signs Agreement to Raise $12.5 Million.CALGARY, Alberta--(BUSINESS WIRE)--Aug. 15, 1997--Australian Oilfields Pty. Ltd. (VSE See DOS/VSE. VSE - Virtual Storage Extended :OZ.) (the "Company") is pleased to announce the results of initial workover operations at Tanjung Lontar in South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north. , Indonesia and its intention to raise Cdn. $12.5 million by way of a private placement of special warrants. The initial two workovers at "T.L. no. 30 and Sengkuang no. 8" tested 275 and 150 BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot respectively during the initial test period ending August 5, 1997. The wells are currently shut-in awaiting completion of 7 additional workovers and the issuance of the "Declaration of Commerciality" from Pertamina, the state oil company of Indonesia and the Company's partner at Tanjung Lontar. Upon receipt of Commerciality, currently anticipated for the fourth quarter of the year, the Company will commence producing the wells and initiate the cost recovery phase of the Technical Assistance Contract with Pertamina. The Company is currently rehabilitating "T.L. no. 27" and "T.L. no. 13". All wells are being completed at depths ranging from 500-800 meters. The Company is also planning up to 20 infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. wells to exploit existing known horizons at Tanjung Lontar and to test potential deeper formations which produce in adjacent fields. Shallow drilling conducted at Tanjung Lontar in the late 1930s and early 1940s failed to penetrate these deeper zones. The infill drilling program is scheduled to commence in the first quarter of 1998 and has the potential to increase proven oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally well beyond the current estimate of 7.2 million barrels prepared by Sproule International Ltd., independent consultants from Calgary in a report dated February 14, 1997. The Company is also pleased to announce it has executed an agency agreement with FirstEnergy Capital Corp. (the "Agent") of Calgary to raise Cdn. $12.5 million on a best efforts basis by way of a private placement of special warrants. Each special warrant will be exercisable into one (1) common share with final pricing of the special warrants to be determined following the Company's marketing program, scheduled to conclude on August 25, 1997. The proceeds of the special warrant offering will be applied primarily to the exploitation and exploration of Tanjung Lontar in South Sumatra, Indonesia. Closing of the private placement is scheduled for September 18, 1997 and is subject to the Agent's normal due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and general corporate and regulatory approvals. -0- Note to Editors: The Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). has neither approved nor disapproved the information contained herein. CONTACT: Australian Oilfields Pty. Ltd. G. Marshall Abbott, 403/264-9562 or Australian Oilfields Pty. Ltd. David Matheson Lead Vocalist of Moxy Früvous and The Ground Crew, formerly of By Divine Right, Head, and Change of Heart. Along with Maury Lafoy on upright bass, Matheson entertains audience members at tapings of the Royal Canadian Air Farce at the CBC's Canadian Broadcasting Centre in Toronto, Ontario , 403/264-9562 |
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