Olympic provides info on Coalinga No. 1 gas well
Olympic Resources Ltd ORL
Shares issued 11,994,378 Jul 23 close $0.47
Tue 24 Jul 2001 News Release
Mr. Daryl Pollock reports
Drilling operations are proceeding smoothly on the Olympic Coalinga No. 1
gas well located in Fresno county, California. As of July 24, 2001, regular
drilling operations have reached 7,770 feet toward a target depth of 11,200
feet. Olympic currently holds a 20.5-per-cent working interest which
results in a 17.5-per-cent net revenue interest before payout and a
14.5-per-cent net revenue interest after payout. The Coalinga Nose prospect
consists of 5,000 acres of leased land and is located less than one mile
southeast of the East Coalinga extension which has produced 503 million
barrels of oil. The prospect is also less than one mile northwest of the
Kettleman Hills field which has produced 2.9 trillion cubic feet and 458
million barrels of oil.
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 this is a "superior
prospect based on a quality modem 3-D seismic grid, abundant and thoroughly
mapped well control" and "both production and downdip shows in the target
horizon." 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. This well had significant untested gas shows in
the Brown Mt. sand from 11,455 feet to bottom. 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.
Four-way closure can be observed within the prospect area where the Brown
Mt. sand is up to 400 feet thick.
This prospect is being tested with an 11,200-foot well located one mile to
the northwest and 500 feet up dip of the 1942 well within the best
amplitude response for this fault block. This well is expected to reach
target depth in mid-August. |
