December 17, 1996
MORRISON MIDDLEFIELD RESOURCES LIMITED ("MMRL") is pleased to announce that the first exploratory well drilled by its UK subsidiaryCANDECCA RESOURCES LIMITED on its' recently acquired exploration licences is a discovery.
The well, located two miles from the North Sea on its East Lincolnshire licence PEDL 005, tested two zones at a stable rate of 3.1 MM cubic feet of gas per day and 90 barrels of condensate. Analysis of the test data confirms that the reservoir sands were damaged during the drilling operation and should produce at higher rates upon completion. This structure covers an area of approximately 1000 acres. Additional structures have been identified on MMRL acreage in close proximity to this discovery. The East Lincolnshire exploration licence covers an area of about 190,000 acres and was awarded to MMRL as part of the 7th onshore licence round in April 1996.
MMRL has a 100% interest in over 500,000 acres of exploration licences in the UK. Further exploration and development is planned on these properties in 1997.
For further information contact:
Mr. Raymond R. Pether
Chief
Operating Officer
(416) 362-0714