DRILLING STATUS OF GREER-1 AND SAN JOAQUIN BASIN PROJECT, CALIFORNIA,
USA.
Victoria Petroleum N.L. has been advised by the Operator for the San
Joaquin Basin Project Joint Venture, Kestrel Energy, Inc., that earth
moving operations to prepare the Greer-1 well site pad have commenced.
The drilling rig selected to drill Greer-1 has also been contracted and
will commence mobilising to the Greer-1 location from its present well
site in Los Angeles on 10 November 1997. Following the drilling rig
arrival at the Greer-1 well site location and rig up, Greer-1 is
expected to spud on 15 November 1997.
Greer-1 is planned to be drilled to a depth of 3,170 metres on the Greer
Prospect which is defined by a seismic amplitude anomaly interpreted
from seismic data to have the potential to contain in the most likely
case, 26 million barrels of oil, if oil is present.
Greer-1 was originally planned to be drilled in late August 1997 but has
been delayed until the present time as a result of additional technical
work carried out by Kestrel Energy, Inc. using refined seismic
techniques to determine an optimum drilling location for Greer-1 on the
Greer Prospect. This work has resulted in a change of location to what
the company considers is now the optimum drilling location within this
area of the Greer seismic amplitude anomaly.
Victoria Petroleum N.L. has a 63.3% direct and indirect interest in the
Greer Prospect.
Ongoing geophysical and geological definition of the Sylvester, North
Tweetie, Dewey, Raven, Kingfisher and Jackal Prospects along with lease
acquisition is continuing with an anticipated drilling program of up to
six wells over the next twelve months in the San Joaquin Basin Project
area. This activity should result in up to two wells being drilled prior
to the end of the year with two wells in the first quarter of calendar
1998 and one well in each of the remaining quarters of calendar 1998.
The planned drilling program is subject to lease and rig availability.
Victoria Petroleum N.L. considers it has acquired a significant core
position in the San Joaquin Basin which is highly prospective for oil
and gas with 11 billion barrels of oil and 10 trillion cubic feet of gas
discovered to date. The United States Geological Survey has estimated
that the San Joaquin Basin with current production of 600,000 barrels of
oil per day has the potential to contain an additional 1.2 billion
barrels of recoverable oil.
Entry into the San Joaquin Basin Project provides Victoria Petroleum
N.L. with an interest in an extensive geological and geophysical data
base which provides a major opportunity to explore the San Joaquin
Basin. Geophysical and geological interpretation of the extensive data
base of seismic and well data indicates the presence of at least 30
prospects and leads defined to date by the latest seismic interpretation
techniques. Future success in drilling in the Daisy and Greer areas
could add another 20 prospects and leads. These prospects and leads and
possible additions form potential future drilling targets.
Exploration success in the San Joaquin Basin Project drilling program
has the potential to significantly increase Victoria Petroleum N.L.'s
asset and reserves base as a result of the high percentage equity
Victoria Petroleum N.L. has in the prospects being drilled and the
potential size of the drilling targets selected.
Yours faithfully
JOHN KOPCHEFF
MANAGING DIRECTOR
VICTORIA PETROLEUM N.L.
***************************************************************
This was taken off the web site for Victoria Petroleum, which owns about 28% of Kestrel. 26 mmbo X 50% NRI X $5 per bbl = $65 mm worth of oil. Divide that by the 4.4 mm shares out for KEST and you get sick!!
See Victoria's web site at vicpet.com.au
Chuck & Mike are gonna write an update on these guys soon. My guess would be right after the spudding. So that translates into taking your position in this by the end of the week. Believe me, a few shares of this little turkey could do a lot for that "basket" of yours! |
