CALGARY, AB, July 27, 2004 (EWORLDWIRE) — DMT Energy Inc. announces that after careful evaluation of the data concerning the Wainwright 1-6 well (perforated earlier this year), the company is moving forward with an acid wash on the well to rid it of filtrates that have inhabited the formation over the years thus preventing the proper flow of hydrocarbons. Based on a technical evaluation completed by the company’s consultants using data made available to the company from when the well was initially drilled, it appears that during drilling into the Camrose formation there was a significant amount of drilling mud and cement used to stop a series of strong gas kicks that required controlling.
At the same time DMT will re-enter the Wainwright 9-6 well to perforate the Rex Sand formation. On a 160 acre area there are 1,142,000 bbls of oil in place based on an independent engineering report with a 20% recover factor, over 225,000 bbls could be recovered with additional drilling. DMT has applied for the surface permit to re-enter Wainwright 9-6. The company expects to complete both wells within the next 30 days.
Fred DaSilva, DMT President and CEO, announced, “It has always been our objective to build cash flow using low risk opportunities to strengthen the revenue and asset base for the company and its shareholders – a solid foundation if you wish. This foundation allows us the opportunity to not only provide a return on investment to our shareholders, but equally as important, an it provides an ability to explore our undeveloped Canadian and New Mexico prospects, which we feel could provide our shareholders with a significant return.”