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