Correcting Evergreen's working interest figure; should be 75 percent (sted 76 percent).DENVER--(BUSINESSWIRE)--March 19, 1997--Evergreen Resources Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :EVER) announced today that the government of Chile has awarded an oil and gas exploration contract to Evergreen on two 5,000 square kilometer (1.2 million acre) blocks in northern Chile. Evergreen has 75 percent working interest in the blocks and will serve as operator. Empresa Nacional del Petroleo (ENAP ENAP École Nationale d'Administration Publique (Université du Québec) ENAP Empresa Nacional del Petróleo (National Petroleum Company, Chile) ENAP Excisional New Attachment Procedure ), the state-owned energy company, holds the remaining 25 percent working interest. The Chilean government will initially receive a 10 percent royalty on production up to 10,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. . Both exploration blocks are located in the Tamarugal Basin, which has been identified by Evergreen as a probable geologic analogue to the Neuquen Basin of Argentina. The Tamarugal Basin is thought to be a thermally mature Jurassic back-arc basin Back-arc basins (or retro-arc basins) are geologic features, submarine basins associated with island arcs and subduction zones. They are found at some convergent plate boundaries, presently concentrated in the Western Pacific ocean. , comprised of thick sequences of source rock, along with potential reservoir beds in the form of sandstone and limestone. The Neuquen Basin has proved 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 of 1.9 billion barrels of oil and 18 trillion cubic feet of gas, representing a substantial percentage of the total oil and gas reserves of Argentina. Evergreen and ENAP will share the following work commitments proportionately, stated as Exploration Periods for each block: -0-
Period Term Work Commitment
1 1 year Geologic mapping, aeromagnetic and gravity
surveys
2 2 years 200 km seismic
3 2 years 1 exploratory well
4-9 1 year each 1 exploratory well
-0- Evergreen and ENAP may relinquish up to 100% of the blocks at the end of each exploration period. If the blocks go into production, the contracts will last 35 years. CONTACT: Evergreen Resources Inc., Denver James S. Williams or Mark S. Sexton sex·ton n. An employee or officer of a church who is responsible for the care and upkeep of church property and sometimes for ringing bells and digging graves. , 303/534-0400 |
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