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CHIEFTAIN SETS US$100 MILLION BUDGET FOR 1994

 EDMONTON, Alberta, Nov. 16 /PRNewswire/ -- Chieftain International Inc. has set its 1994 capital budget at US$100 million (C$131 million) of which US$35 million (C$45.8 million) is allocated to gas and oil exploration and development activities and $65 million (C$85.2 million) is for acquisition of gas and oil producing properties.
 Chieftain told the American Stock Exchange's Canadian Oil and Gas Symposium in New York today that Chieftain's 1994 budget is up from estimated total expenditures of $31 million (C$40.6 million) in 1993. The acquisition portion of the budget will be directed to the U.S. which will also be the principal focus of the exploration and development expenditures.
 The size of the budget reflects the company's rising cash flow and strong balance sheet. As previously reported, cash flow for the nine months ended Sept. 30, 1993, increased by 43 percent to US$20.7 million (C$27.6 million), after preferred dividends, from the comparative 1992 period. Chieftain has no debt and working capital of US$117 million (C$156.5 million).
 The company said it will participate in 15 to 20 significant wells in the U.S. Gulf of Mexico region, Libya, the North Sea and Peru through the first half of 1994. Chieftain is currently participating with an interest of 25 percent in an offshore exploratory well on Garden Banks Block 35 in the Gulf of Mexico, with 35 percent in an indicated gas/condensate discovery at Crooked Bayou in Liberty County, Texas and with 10 percent in evaluating a step-out well at Milton in Vermilion Parish, La. In Libya, the second well in a 12-well oil exploration program, in which Chieftain is participating with a 7.5 percent interest, is drilling in the Sirte Basin.
 In the next few weeks, Chieftain will participate, with interests ranging from 18.75 percent to 27.5 percent, in exploratory wells on gas prospects in Louisiana's Iberville and Lafourche Parishes and offshore in the Gulf of Mexico in the South Marsh Island, Main Pass and Galveston areas. Drilling is also about to commence on the first of at least two horizontal development wells on the north half of South Pass Block 37 in which Chieftain has a 42.3 percent interest. In the U.K. sector of the North Sea, drilling will commence by year-end on the first horizontal appraisal well in the Galahad Field, in which Chieftain has an interest of 17.8 percent. In Peru's Maranon Basin, an exploratory well is expected to commence drilling in the first half of 1994 on a large structure in the northern portion of a 2.4 million acre concession in which Chieftain has a 29.1 percent interest. A planned nine-well development program will begin this month to boost light oil production from the Ratherford Unit, Utah, in which Chieftain has a 21.4 percent interest.
 In the nine months ended Sept. 30, Chieftain participated in 16 wells, resulting in five gas wells (Chieftain average interest 41.8 percent), nine abandoned wells (average interest 19.9 percent), one drilling well (10 percent) and one well being evaluated (35 percent).
 -0- 11/16/93
 /CONTACT: Tom Campbell, 403-425-1950/
 (CID.) CO: Chieftain International Inc. ST: Alberta IN: OIL SU:


JL -- LA035 -- 5165 11/16/93 14:41 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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