Olympic finds significant gas shows in Brown Mt. sands
Olympic Resources Ltd ORL
Shares issued 12,214,378 Nov 2 close $0.70
Mon 5 Nov 2001 News Release
Mr. Daryl Pollock reports
The Olympic Coalinga No. 1 gas well located in Fresno county, California,
has penetrated the Brown Mountain sand within two feet of the original hole
at 10,810. The hole is currently at 10,850 feet with 230 gas measurement
units throughout the top 20 feet. Gas shows encountered in the original
hole are expected to occur throughout the day as the drilling proceeds
through this formation. Open-hole logging is expected to commence on
Wednesday, Nov. 7, after total depth of 11,200 feet is reached. Olympic
holds a 20.5-per-cent working interest in the Coalinga prospect with a
17.5-per-cent net revenue interest before payout and a 14.5-per-cent net
revenue interest after payout.
Prior to the commencement of drilling, a cased-hole evaluation log (TMD-L)
and a cased-hole cement bond log were run over the secondary Martinez sand
target. The main intervals, 9,877 feet to 9,896 feet (19 feet), 9,899 feet
to 9,922 feet (23 feet) and 9,924 feet to 9,933 feet (nine feet) have
returned excellent resistivity and correlate to the Neutron curve on the
Bond log indicating mostly sand throughout the interval. The Haliburton
TMD-L logs reveal strong indications of hydrocarbons within these intervals
confirming the live oil and gas shows encountered while drilling.
Above-average porosities are also indicated from these same intervals.
These results correlate with the open-hole mud log gas shows increasing
overall confidence in the data. Other potential intervals are indicated but
require further evaluation.
Initial e-logs of the Brown Mountain sands indicated 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.
To date, $5-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.
In light of the encouraging results Olympic Resources has received from
both the East Corning project and the Coalinga project, management has
significantly upgraded the Olympic Web site in order to better inform its
network of investors. Please accept the company's invitation to visit
orlresources.com. |
