Olympic sidetracks Moreno well
Olympic Resources Ltd ORL
Shares issued 12,214,378 Sep 7 close $0.53
Fri 7 Sept 2001 News Release
Mr. Daryl Pollock reports
Sidetrack operations on the Olympic Coalinga No. 1 gas well located in
Fresno county, California, are proceeding smoothly. The Moreno formation
has been penetrated at 9,490 feet and the well is currently at 9,650 feet.
Current lithology is similar to that seen in the original hole and gas
shows are being observed.
Initial e-logs, which have only tested the primary target of the Brown
Mountain sands, indicate potential net pay of between 50 to 100 feet.
Equipment difficulties caused some delays in testing the extent of the
secondary target, the Moreno sands, and during these logging delays the
well deteriorated below the 9,000-foot level requiring a sidetrack
operation below this level to redrill down to total depth. Monitoring
equipment at surface reveals no subsidence or reduction in the strength of
the gas shows and the operator believes that upon completion of the final
logging, these shows will coincide with the majority being productive. At
this point it is still preliminary, however, based on the data received to
date, the Olympic Coalinga No. 1 well has the potential of being placed in
the category of a discovery well.
"We are extremely pleased at how close these drilling operations have
correlated to the 1942 Lyric No. 68-28 well which was drilled some 2,000
metres south. This gives us great confidence in the geologic models and 3-D
seismic data that have been developed in planning this project," says Daryl
Pollock, president and chief executive officer of Olympic.
To date, $2-million (U.S.) has been spent on the land including a 3-D
seismic survey shot in 1997 covering 16 square miles including the prospect
area. According to consulting engineer, Mark Anderson, the 3-D seismic data
"clearly corroborates existing production from known stratigraphic and
structural features" from the Cretaceous Brown Mt. formation which is
largely untested in this area. Only one well has penetrated the Cretaceous
Brown Mt. sand within the seismic shoot area in 1942 which had significant
untested gas shows in the Brown Mt. Sand. Originally drilled for oil, the
off-scale gas shows at the bottom of the well were not tested and the well
was abandoned due to a lack of natural gas market during World War II. |
