| June 17, 1998 Company Press Release Cave Gulch #3-29 Madison Test Update, Wind River Basin, Wyoming Denver, Co., June 17, 1998— Amalgamated Explorations, Inc, (OTC, BB: AXPL) reported today that total depth of 21,965 feet has been reached on the Cave Gulch #3-29 Madison test in the Wind River Basin of Wyoming. The Company owns a 0.726 percent working interest and the operator Barrett Resources has logged and set casing on the well. Production testing of the Tensleep and Madison Formations will begin once the drilling rig has been moved off location. It is anticipated that full testing of the well's potential will be completed during September. The well is 694 feet structurally high to an offset well located 2.3 miles to the north. The Madison Formation will be tested in a gross interval of 21,584 to 21,841 feet including 150 feet of porous dolomite based on log analysis. The Tensleep Formation will be tested in a gross interval of 21,030 to 21,222 feet. Accurate log analysis to determine porosity is unavailable at this time in most of the prospective Tensleep Formation due to hole washout that occurred during drilling. Well operator Barrett Resources Corporation President , William J. Barrett, stated "although the log analysis is a preliminary measure of potential, and extensive testing including gas flow rate and gas composition is necessary to fully evaluate the commerciality of this ultra-deep prospect, I am very encouraged with these early results." The Cave Gulch #3-29 well spud in September 1997 and reached total depth in 236 days. Six nearby wells previously drilled by others to an average depth of 20,958 feet required an average of 444 days to reach total depth. Amalgamated continues to develop the deep horizons of the Frontier, Muddy and Lakota Formations at depths of 16,700 to 19,000 feet. The Cave Gulch Lak Well #1-29, in which Amalgamated holds a 1.5% working interest, continues to produce at high pressure from the Frontier and Muddy Formations at a rate of 43,000 MMBTU per day and has produced 4.5 Bcf of gas since going on line on February 20, 1998. Amalgamated Explorations, Inc. - 1-303-629-5115 |