PR today from FGD. Also a partner in the coalinga nose project!
From First Gold today:
FIRST GOLDWATER RESOURCES INC.
Suite 910 - 688 West Hastings Street
Vancouver, BC V6B 1T1
Telephone: (604) 692-3230
Facsimile: (604) 632-9849
August 13, 2001 Trading Symbol: CDNX: FGD
CONTINUED SIGNIFICANT GAS SHOWS ENCOUNTERED
First Goldwater Resources Inc. (the "Company") is pleased to announce that
drilling on the Coalinga Nose 1-1 Well is at approximately 10,500 feet
drilling towards the target depth of 11,500 feet. Surface casing was set and
cemented to a depth of 2,622 feet and blow out preventors were installed and
then approved by the California Division of Oil and Gas. The Company has a
10% working interest in this Well.
Significant gas shows, background gas and oil bearing sand were encountered.
Gas units encountered so far have gone as high as just over 3,000 units.
The geological profile as projected prior to drilling is currently on
target. The Well is now expected to penetrate the target horizon of the
Brown Mt. Sand at approximately 10,800 feet.
The Coalinga Prospect is a parcel of 8,730 acres of leased land located in
Fresno County, California, and is located less than one mile southeast of
the East Coalinga extension which has produced 503 million barrels of oil.
The prospect is also less than one mile northwest of the Kettleman Hills
field that has produced 2.9 trillion cubic feet and 458 million barrels of
oil.
Over $3,000,000 has been spent on the prospect including a 3-D seismic
survey shot in 1997 covering 16 square miles including the prospect area.
According to consulting engineer, Mark Anderson, this is a "superior
prospect based on a quality modern 3-D seismic grid, abundant and thoroughly
mapped well control" and "both production and downdip shows in the target
horizon." Mr. Anderson also stated that the 3-D seismic data "clearly
corroborates existing production from known stratigraphic and structural
features" from the Cretaceous Brown Mt. formation that is largely untested
in this area.
Only one well has penetrated the Cretaceous Brown Mt. sand within the
seismic shoot area and that was drilled in 1942. This well had significant
untested gas shows in the Brown Mt. sand from 11,455 feet to bottom.
Originally drilled for oil, the off-scale gas shows at the bottom of the
well were not tested and the well was abandoned due to a lack of natural gas
market during World War II. Four-way closure can be observed within the
prospect area where the Brown Mt. sand is up to 400 feet thick. This
prospect is being tested with an 11,500-foot well located one mile to the
northwest and 500 feet up dip of the 1942 well within the best amplitude
response for this fault block.
Contact Information:
Jason Gigliotti
Tel: (604) 692-3232
Toll Free: 1-866-692-3230
www.goldwaterresources.com
BY ORDER OF THE BOARD OF DIRECTORS
