SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): December 27, 1996
Commission File Number: 0-14096
FORELAND CORPORATION
(Exact Name of Registrant as Specified in its Charter)
NEVADA 87-0422812
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
12596 W. BAYAUD AVENUE
SUITE 300, LAKEWOOD, COLORADO 80228
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code:
(303) 988-3122
N/A
(Former name, former address, and formal fiscal year, if changed since
last report)
ITEM 5. OTHER EVENTS
On December 27, 1996, Foreland Corporation announced that testing of the
Pine Creek #1-7 well has been substantially completed. The well is located in
the Pine Valley, Nevada. Several zones in the Devonian carbonates, the Tertiary
volanics, and the valley fill section were tested. A high gravity, low pour
point oil was recovered from the well, but the water cut was too high to
economically produce. Based on the dipmeter logs and 2D seismic data, updip
locations may exist for the reservoirs which tested oil. In order to further
refine these potential updip drilling locations as well as identify other
exploratory drilling targets, Foreland and its partners have approved a 16.75
square mile 3D seismic acquisition program. Surveying, archaeology, and
shooting are expected to take two months. Processing of the data will begin in
the second quarter of 1997. The data will be interpreted by Foreland personnel
by integrating the drilling results from the Pine Creek well. Foreland has a
56.25% working interest in this project.
Foreland also announced that additional testing has been completed on the
Deadman Creek #44-13 well. Oil has been tested at rates of 20 to 40 barrels per
day. The oil is high gravity (32.) and low pour point (42.). Based on the test
results, Foreland is acquiring the surface equipment required to place this well
into production. Production should commence by May 1997. Foreland believes
that testing oil from the Deadman Creek well has opened up a new area and a new
formation to oil production in Nevada. The nearest oil production is nearly 100
miles away from this well, and no other Nevada well has ever produced oil from
this horizon. Foreland is now evaluating other drilling techniques, including
horizontal drilling, in order to increase the production rate from future wells.
The Deadman Creek well is located in Toano Draw in northeastern Nevada.
Foreland also announced that drilling will commence on the Ghost Ranch #38-
35 well in January. This well is a westerly offset to the Ghost Ranch #48-35
discovery well. The #38-35 is designed to test the same horizon which produces
in the discovery well at a restricted rate of 200 to 250 barrels of oil per day.
Drilling rig availability had delayed the start of this well. The Ghost Ranch
field is located in Railroad Valley, Nevada. Foreland has 60% of the working
interest in this well and is the operator. Plains Petroleum Operating Co., a
wholly-owned subsidiary of Barrett Resources (NYSE: BRR) has the remaining 40%
working interest.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired. Not applicable.
(b) Pro forma financial information. Not applicable.
(c) Exhibits. The following exhibit is included as part of this report: None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: December 31, 1996
FORELAND CORPORATION
By: /s/ Kenneth Ransom, Vice President
