UTF project status update, May 1997

The Underground Test Facility (UTF) is producing from three tunnel drilled 500 m long horizontal well pairs which have produced effectively at their p eak rates and reached recoveries of almost 55% OOIP. Two new pairs of 750 m and 300 m horizontal wells have been drilled from the surface and were sta rted up in April 1996. Start-up performance and well control methods have b een successful. Another 750 m horizontal well pair is to be drilled from su rface in the spring of 1997 and started up in the fall of 1997. Its purpose is to test methods of operating a well pair next to a depleted reservoir w ithout losing steam to it. Net revenue from the UTF Project has funded the costs of adding three surface well pairs and related plant facilities since September 1994. The UTF Project is owned by AOSTRA with nine industry part icipants, including Gibson Petroleum Company Limited who was appointed Proj ect Operator in October 1995.