VANCOUVER, British Columbia, March 16 /PRNewswire/ -- Continental Energy
Corporation (OTC Bulletin Board: CPPXF) ("Continental") announces that its
wholly owned Indonesian operating unit Apex (Bengara-II) Ltd. has completed
its reconnaissance phase seismic mapping of over 2,800 line kilometers of good
quality 2D seismic covering the 1.2 million acre Bengara-II block onshore East
Kalimantan, Indonesia.
Geological and geophysical investigations conducted by the Company's
Jakarta based exploration staff have resulted in the identification of
15 plays, 27 prospects, 6 leads and over 300 seismic anomaly leads. Of the
27 prospects the Company considers 15 of them "drillable" without need for
additional seismic delineation. Estimates of the potential petroleum
resources contained in the drillable prospects are currently being made by the
Company and by the Company's independent engineers.
The Company's chief geophysicist, Jim Haebig, said from Jakarta, "I've
been making seismic interpretations of international oil exploration
properties since 1963. The Bengara-II block offers a variety of potential
drilling targets. There are onshore, offshore, swamp locations; oil only, gas
only and both oil and gas prospects; shallow drilling prospects less than
3,000 feet, medium range ones and deep ones over 15,000 feet; structural traps
of every description, stratigraphic traps and plentiful seismic DHI's (direct
hydrocarbon indications) all in fifteen different plays or geologic settings
conducive to petroleum accumulation."
The Bengara-II PSC contract area lies astride the delta of the Bulungan
River, a promising place to explore for oil and gas. The Makapan-#1 well
drilled within the contract area from a barge in 6 ft water depth on the delta
in 1988 tested 19.3 Million cubic feet per day of gas plus 600 barrels per day
condensate. A small shallow oil field, the Galiadap Field, was discovered in
the southern onshore portion of the contract area circa 1915 and produced for
a few years but records of the field's production history were lost during
World War II. A Company geological field party surveying the area last year
was able to find and identify four of the original 1915 wellbores, two of
which were actively leaking crude oil from rusted casing.
Richard L. McAdoo, company director and president of the Indonesian
operating unit, said from Jakarta, "We are very encouraged by the
reconnaissance mapping results. We intend to focus our efforts first on a
large structure underlying the oil seeps from the Galiadap Field wells and
later on appraising what appears to be a sizable gas accumulation in the delta
proven at Makapan-#1 well. Access to the Galiadap area prospects is easy and
we have five separate stand-alone prospects located on the large structure
which can most economically be tested in a single drilling campaign of five
wells. We are discussing possible farm-ins with other oil companies and are
also discussing a drilling for equity deal with a major drilling contractor."
Apex (Bengara-II) Ltd.'s sole asset is a 100% interest in a Production
Sharing Contract (PSC) with Pertamina, the state oil company of Indonesia, for
oil and gas exploration and production rights for 30 years for the 1.2 million
acre Bengara-II contract area located mostly onshore but partially offshore,
on the east coast of the island of Kalimantan, Indonesia. The Company
purchased 100% of the shares of Apex (Bengara-II) Ltd. effective August of
1998.
Continental is an oil and gas exploration and production company focused
on properties in Indonesia and the state of Texas.
NOTE: Certain matters discussed within this press release are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although Continental believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include financial performance, oil and gas prices, drilling program results,
regulatory changes, changes in local or national economic conditions and other
risks detailed from time to time in the Company's Form 20-F reports filed with
the S.E.C.
The Vancouver Stock Exchange has neither approved nor disapproved the
contents of this news release.
SOURCE Continental Energy Corporation
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Related links:
http://www.continentalenergy.com
CONTACT:
Gary R. Schell or Craig Doctor, both of the
Continental Energy Corporation, 604-687-3434, or 888-556-3213, or
fax, 604-687-3073
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