Zeppelin (NASDAQ:ZEPE)
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Zeppelin Announces the Signing of a Final Agreement of the
Drayton Valley Shallow Oil and Gas Project
CALGARY, April 26 /PRNewswire-FirstCall/ -- Zeppelin Energy Inc. (OTCBB:ZEPE)
announces today that it has signed a Farmin Agreement dated April 22nd, 2004
with Ribstone Resources Ltd. for the acquisition, by Zeppelin, of 100% of the
interests of Ribstone subject to a 3% Gross Overriding Royalty, in certain oil
and gas leases in the Drayton Valley area of west central Alberta.
Zeppelin proposes to spud the first earning well on this acreage by mid July
2004 and will drill a minimum of three wells at an expected cost of
approximately $Cdn 300,000 per well in order to fully earn the Ribstone
interest. These interests comprise the oil and gas rights down to the Cardium
formation, found at approximately 1650 meters (5400 ft) in the area. The
Ribstone interest area consists of 1600 acres covering 10 quarter sections.
Zeppelin will acquire a 90% interest in approximately 1120 acres (7 quarter
sections) and a 30% interest in a further 480 acres (3 quarter sections).
Zeppelin will earn the rights to the Ribstone interests by completing the
drilling program noted above and making a series of cash payments, which began
with the signing of the agreement, and will continue in a phased and option
based manner until a total of $Cdn 283,333 has been paid. Funding for the
program is expected to be acquired from private sources.
In addition to the Ribstone interests noted above Zeppelin has obtained an
option, subject to certain prior rights held by an existing interest holder, to
acquire 90% of the Ribstone rights from surface to the Cardium formation in a
further 800 acres (5 quarter sections) located immediately to the north of the
1600 acre holding referenced above. This acreage is currently held 70% Ribstone
and 30% Devon Energy.
The acreage acquired by Zeppelin overlies the Pembina Oil Field which is the
largest conventional oil field found in Canada to date and which has produced
more than a billion barrels of oil from the Cardium formation through 5500
wells. The Pembina Field was developed between 1954 and 1965 and, during the
course of that activity, and specifically upon the acreage acquired by
Zeppelin, more than 20 wells have been drilled. These wells penetrated a
significant number of reservoirs, some of which, known as the; Paskapoo,
Edmonton, and Belly River sands, appear to be hydrocarbon bearing based on
evaluations conducted by Zeppelin.
A Belly River gas producer located approximately 2 1/2 miles from the acreage
which Zeppelin has acquired tested 5 MMcfpd and has produced more than 100 MMcf
and 90,000 Bbl in its two year life. A Zeppelin review suggests that ten
existing wells have log characteristics sufficiently similar to those seen in
the nearby producing wells to warrant detailed study and possible redrilling or
recompletion. Multiple targets exist in most wells and interpreted aggregate
net pay in these wells ranges from 35 ft. to 120 ft.
Two Paskapoo gas producers, located less than two miles from the Zeppelin
acreage tested 470 and 850 Mcfd approximately three years ago. These produced
at rates of 130 to 350 Mcfpd respectively after approximately two years of
production. Zeppelin has identified at least five potential Paskapoo
recompletions with interpreted net pay in the range of 20 to 90 ft. in existing
wells on the Ribstone acreage.
About Zeppelin Energy Inc.
Zeppelin Energy Inc. is a publicly traded company on the OTC BB ("ZEPE").
Zeppelin Energy is an independent energy company dedicated to the acquisition
of proven Oil and Gas properties with specific emphasis in the Western Canadian
Basin, Central and South America. Those wishing to learn more about Zeppelin
are encouraged to visit http://www.zeppelinenergy.com/ or to contact the
President of Zeppelin at the contact information below.
Certain statements in this news release may contain forward-looking information
within the meaning of Rule 175 under the Securities Exchange Act of 1933 and
Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules. All statements included in this release
other than statements of fact are forward-looking statements that involve risks
and uncertainties.
DATASOURCE: Zeppelin Energy Inc.
CONTACT: Menno Wiebe, President, Telephone (403) 444-6901, E-mail
address -