Exploration and Development

The conservative, low risk strategy adopted in
1982 continued throughout 1983. A total of 20
wells were drilled on company lands resulting in
fifteen oil wells, two gas wells and three dry
holes. Of these, Brinco Oil & Gas Limited had
direct financial participation in six oil wells, two
gas wells, and no dry holes. Both of the gas wells
are in areas in which gas purchase contracts are
in place, and 1983 is the second successive year
in which financial participation in dry holes has
been avoided.

Brinco Oil & Gas Limited has a 4.5 percent
interest in a six well drilling program at
Crossfield, just north of Calgary. Individual well
productivities range from five barrels per day to
ninety barrels per day, the average being
twenty-five barrels per day per well. Enhanced
recovery measures and possibly further drilling
are being considered.

The development program on the Chauvin
property in eastern Alberta was completed in
1983. There are now a total of 12 producing
wells on this property, and Brinco Oil & Gas
Limited’s share of production is 36 barrels of oil
per day.

The boundaries of the Lobstick pool in Pembina
have been defined by drilling, and enhanced
recovery alternatives are being evaluated for
implementation in 1984.

Brinco Oil & Gas Limited has a 7 percent
working interest after payout of drilling costs in
a significant discovery in the Chigwell area of
central Alberta. It is expected that a step-out
well, in which Brinco Oil & Gas Limited will
have a 5 percent working interest, will be drilled
during 1984.

DRILLING RESULTS

1983 1982
Success Rate 85% 87%
Total Wells Drilled 20 30
Crude Oil 15 17
Natural Gas 2 9

Brinco Oil & Gas Limited

LAND HOLDINGS
(as at December 31, 1983)

Gross Net

Acres
Alberta 394,609 49,164
British Columbia 227,374 31,130
Saskatchewan 3,120 1,040
Eastcoast offshore 753,403 4,126
Northwest Territories 677,560 8,500
Total Canada 2,056,066 93,960
United States ~ 11,487 1,157

Total Holdings 2,067,553 95,117