Olympic reaches 9,970 feet at Coalinga No. 1 gas well
Olympic Resources Ltd ORL
Shares issued 12,214,378 Aug 8 close $0.52
Thu 9 Aug 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 today, regular
drilling operations have reached 9,970 feet toward a target depth of 11,200
feet. Olympic currently holds a 20.5-per-cent working interest which
results in a 17.54-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.
The well is currently drilling through the Moreno formation, a secondary
target expected to be about 800 feet thick. The Moreno formation consists
of shakes with interbedded sands lying above the Cretaceous Brown Mt. Sand.
Upon entering the formation, gas kicks were immediately encountered at
9,600 feet with associated rapid drilling rates. Mud weights were increased
from 12.0 pounds per gallon to 13.3 pounds per gallon raising hydrostatic
pressure to 6,900 psi. Total sand thickness in this secondary target is 45
feet with 60 feet of total gas shows. These gas shows will be investigated
for their potential commercial value as the Moreno formation is relatively
underexplored. The well's primary target, the Brown Mt. Sand, is expected
to be penetrated below this level at approximately 10,400 feet.
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 modern 3-D seismic grid, abundant and
thoroughly mapped well control," and "both production and down dip 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. |
