Zeppelin Announces the Signing of a Final Agreement of the Drayton Valley Shallow Oil and Gas Project
26 April 2004 - 4:30PM
PR Newswire (US)
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 -
Copyright