This update is intended to provide you with the latest information about the above incident from the REOC Centre located at the Alberta Energy and Utilities Board (EUB) St. Albert Field Centre. The Acclaim Energy Trust well control incident is located just west of the City of Edmonton in the County of Parkland.

Public Complaints/Enquiries

• The EUB and Acclaim issued Press Releases on December 23, 2004 indicating that the flow of gas from the well appears to be declining and the flow may subside or cease within the next several days. As of 3:00 p.m. January 1, 2005, significant further reductions in flow have not been experienced and the flow remains stable.
• There have been no public complaint/enquiry received by the REOC between 3:00 pm January 1, 2005 and 1:00 pm January 2, 2005.
• Area residents who have any health-related questions are being encouraged to call the Capital Health Link (24 hours) at 780-408-5465.

Well Control

• Acclaim is pursuing multiple options with respect to well control. The flow of gas is still burning at what would appear to be a consistent rate.
• Acclaim continues to plan to attempt to sting into the 2-26 well, with the goal of establishing capability to pump fluids from surface to support the drilling effort.
• The ground around Acclaim (102) 2-26 well has eroded.  The D2 perforations have been successfully abandoned by conducting a bull head cement squeeze.
• Drilling operations on both relief wells are ongoing. At 11:00 am this morning the Champion #5 rig was drilling at about 1305 m (projected total depth 1375 m) and the Precision #120 rig was drilling at about 1224 m (projected total depth 1441 m).
• In an effort to reduce pressure on the formation, a well close to the 2-26 well site (7-26-52-26W4M) is being prepared to produce from the same zone as 2-26. Production will go to the Acheson gas plant. There may be some associated flaring in bringing this well into production. Rockwell # 60 service rig is drilling out cement at the 7-26 well due to a problem that was encountered while cementing the liner.
• A temporary 80 metre long surface pipeline has been approved by the EUB. This line runs from the well head to a pipeline header on the edge of the lease site.
• Three ignition sources are in place to maintain the burning of the gas: Firefly unit, pistol flares, and a continuous propane pilot.
• Acclaim has posted several news releases and technical diagrams; and provided relevant resources at http://www.acclaimtrust.com/.
• Acclaim has moved the roadblock locations closer to the 2-26 well site and 2 families have returned home.  Currently, 8 families are still mandatorily evacuated. Several other homes remain evacuated, but voluntarily. Acclaim continues to accommodate all evacuees.
• Acclaim indicates it could take as long as two to three weeks to bring the well fully under control.

Air Monitoring

• There are currently 9 stationary and 3 mobile for a total of 12 ambient air quality monitors.
• The plume from the site is primarily water vapor, although there are small amounts of hydrocarbons in the flow being burned that may sometimes emit a slight detectable odour in the area. Mobile monitors continue to track the plume and have recorded negligible readings of H₂S and SO_2.

Produced Fluid Storage/Disposal

• The well is producing salt water and some hydrocarbons which are being directed to earthen pits at the site. Trenches are being dug deeper due to sluffing of walls.
• Trucking of fluids and solids continues
• The EUB has approved temporary storage of produced water and solids at an existing site constructed with an engineered compacted clay liner.
• The EUB has approved temporary disposal of water at the 1-35-52-26W4M well.
• Acclaim has received approval to use the 3-26 well for water disposal.
  

Soil and Groundwater Testing Management Plan

• All water wells within a 2 km radius have been sampled (December 23, 2004). Analytical results are expected in the upcoming week.
• Acclaim has initiated a groundwater monitoring well program. Preliminary test results from the 3 monitoring wells indicate groundwater in the area has not been affected.
• Preliminary results from 5 test wells within 1km show no impact to resident water wells.

The REOC was opened on Monday December 13, 2004 and will continue to be operational until the conclusion of the well control incident.

REOC Representatives

Alberta Energy and Utilities Board (EUB) Acclaim Energy Trust

Alberta Environment Capital Health Authority

REOC Telephone Number 780.460.3800

Media Enquiries                              Greg Gilbertson, EUB, 403.651.9880