CALGARY, Alberta, Canada, July 27, 2004 (PRIMEZONE) -- DMT Energy Inc. (Pink Sheets:DMTY) announces that after careful evaluation of the data concerning the Wainwright 1-6 well (perforated earlier this year), the company is moving forward with an acid wash on the well to rid it of filtrates that have inhabited the formation over the years thus preventing the proper flow of hydrocarbons. Based on a technical evaluation completed by the company's consultants using data made available to the company from when the well was initially drilled, it appears that during drilling into the Camrose formation there was a significant amount of drilling mud and cement used to stop a series of strong gas kicks that required controlling.
At the same time DMT will re-enter the Wainwright 9-6 well to perforate the Rex Sand formation. On a 160-acre area there are 1,142,000 bbls of oil in place based on an independent engineering report with a 20% recover factor, over 225,000 bbls could be recovered with additional drilling. DMT has applied for the surface permit to re-enter Wainwright 9-6. The company expects to complete both wells within the next 30 days.
Fred DaSilva, DMT President and CEO, announced, "It has always been our objective to build cash flow using low risk opportunities to strengthen the revenue and asset base for the company and its shareholders -- a solid foundation if you wish. This foundation allows us the opportunity to not only provide a return on investment to our shareholders, but equally as important, it provides an ability to explore our undeveloped Canadian and New Mexico prospects, which we feel could provide our shareholders with a significant return."
The company will release further progress on Wainwright as results are received.
For further information please contact Fred DaSilva, President and CEO, at 403-264-7869.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the company's operations, markets, products and prices and other factors discussed in the company's various filings with the Securities and Exchange Commission.
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