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

• Acclaim issued a news release on Friday, January 7 indicating an expected interception with the casing on Sunday, January 9 and followed by the initiation of well control efforts.
• The EUB and Acclaim issued news 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 1:00 p.m. January 7, 2005, significant further reductions in flow have not been experienced and the flow remains stable.
• No public complaints have been received by the REOC between 1:00 pm January 7, 2005, and 1:00 pm January 8, 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.
• Stinger operation has ceased.  There is no possibility the stinger operation is capable of killing the well.  If the stinger operation is resumed it will be for fluid control not well control.
• The ground around Acclaim (102) 2-26 well has eroded.  The D2 perforations have been successfully abandoned by conducting a bull head cement squeeze.
• Champion #5 is drilling out cement, doing a leak off test, and drilling to mill point. Milling through the casing is expected to be completed on Sunday, January 9.
• Precision #120 is at 1262 m and waiting until the efforts of the first relief well are known and evaluated.
• 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 has drilled out the bridge plug to the D3 formation and is expected to be in production on Sunday, January 9.
• 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 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.

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 vapour, 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. Acclaim began piling operations along trenches and well cavity in preparation for installation of shoring to help prevent erosion and cave-ins.
• Soil piles at 2-26 are being sampled to determine the level of contamination and to develop appropriate disposal / treatment as necessary.
• Trucking of fluids and solids continues 1500 m³ to 2000 m³ is being produced and disposed daily.
• 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 & Groundwater Testing Management Plan

• All water wells within a 2 km radius have been sampled (December 23, 2004). 
• Ongoing monitoring 3 test 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.
• Sample analysis of water from the area has been forwarded to Capital Health, Alberta Environment and Health Canada for review. Results will be publicly available when complete.

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                             Darin Barter, 403.651.9487