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| Seven Seas Commences Escuela 2 Subthrust Exploration Well; Well Progress to Be Posted on Web Site |
HOUSTON, Dec. 6 /PRNewswire/ -- Seven Seas Petroleum Inc. (Amex: SEV) announced that it has commenced the drilling of the Escuela 2 subthrust exploration well to test its Subthrust Dindal Prospect, located below the producing zones of the Guaduas Oil Field. The Company believes that the Subthrust Dindal Prospect has the potential to be one of the most prolific oil and gas fields in Colombia. The Escuela 2 well is programmed to reach a total measured depth of about 18,000 feet in approximately 120 to 150 days. The primary geologic objectives are the subthrust Hoyon reservoir (Tertiary age) and the subthrust Cimarrona reservoir (Cretaceous age). Tertiary formations are the major oil and gas producing reservoirs in Colombia. The Company will pay 100% of the estimated $15 million cost of drilling and testing the well. However, because it is an exploration well, the cost and timing could be significantly different than forecast. Seven Seas has a 100% working interest in the Deep Dindal association contract that covers the Subthrust Dindal Prospect. Should the Escuela 2 be completed as a commercial well, the Company will be obligated to assign either a collective 25.85% working interest to Cimarrona and Sipetrol, its partners in the Guaduas Oil Field, or a 9.4% working interest to Cimarrona and a 4.86% overriding royalty interest to Sipetrol. Acquired in early 2001, the Deep Dindal association contract contains the improved contract terms recently offered by Ecopetrol, the Colombian national oil company. Additional details on the Company's interest in the Deep Dindal association contract can be viewed by visiting the Company's website (http://www.sevenseaspetro.com ) and clicking on the Deep Dindal section. The Company intends to post the drilling depth of the Escuela 2 well on its website each Tuesday and will periodically include additional information related to the progress of the well. The website postings are being issued as a matter of shareholder and public interest and it is not expected that anything in the postings will have a material bearing on the value of the Company's stock or assets. Material events concerning this well will be disclosed by press releases. "The commencement of drilling the Escuela 2 subthrust exploration well is a major milestone toward the definition of our Company's potential," stated Robert A. Hefner III, Chairman and Chief Executive Officer of Seven Seas. Seven Seas Petroleum Inc. is an independent oil and gas exploration and production company operating in Colombia, South America. The Company's primary emphasis is on the development and production of the Guaduas Oil Field and exploration of the Subthrust Dindal Prospect, both of which are located in Colombia's prolific Magdalena Basin. Statements regarding anticipated oil and gas production and other oil and gas operating activities, including the costs and timing of those activities, are "forward looking statements" within the meaning of the Securities Litigation Reform Act. The statements involve risks that could significantly impact Seven Seas Petroleum Inc. These risks include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services and government regulation and foreign political risks, as well as other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings with the U.S. Securities and Exchange Commission.SOURCE Seven Seas Petroleum Inc.
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Seas Petroleum Inc., +1-713-622-8218
