Early results of Texaco Canada Petroleum Inc.'s western Canada joint venture drilling program with Encor Inc. are "very encouraging," TexCan Pres. Phillip J. Cram has told shareholders.
The TexCan-Encor venture drilled 16 wells during first quarter 1990-four oil wells, four gas wells, three dry holes, and five wells undergoing evaluation.
Best results were from an oil discovery at Provost, which is on production, and two gas wells at Kaybob. Both areas are in Alberta. The oil well has been producing 90 b/d since March. The gas wells, which flowed 3.6 MMcfd, will go on stream later this year.
TexCan will participate in 70-100 wildcats and development wells this year in Alberta and British Columbia while drilling costs are fairly low, Cram said.
TexCan's share of joint venture costs this year will be at least $31.5 million.
It projects total capital and exploration spending of $46 million in 1990, an increase of 104% from 1989.
Under the 1 year old joint venture, TexCan pays 90% of the drilling costs, all land and seismic costs, and supplies a large inventory of prospects.
TexCan will earn a 45% share of Encor's working interest in certain land.
At both parties' option, the joint venture can be extended yearly into 1991 and 1992.
Separately, TexCan is seeking partners to develop 173,000 acres of Alberta oil sands leases and is working to revive plans for drilling on Georges Bank off Nova Scotia. The federal government placed a moratorium on Georges Bank exploration.
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