Olympic oil and gas holdings update
Olympic Resources Ltd ORL
Shares issued 10,654,378 Apr 25 close $0.60
Tue 25 Apr 2000 News Release
Mr. Daryl Pollock reports
Olympic provides the following update of its oil and gas holdings.
The company holds a 25-per-cent working interest in the Semitropic
syndicate consisting of 4,500 acres of oil and gas leased lands located in
Kern county, Calif. This syndicate, which was organized and is managed by
Olympic, represents one of the largest contiguous blocks of land in the San
Joaquin Valley near the Lost Hills play.
The syndicate property lies 4.5 miles east of the East Lost Hills well over
a portion of a deep-seated structure called the Buttonwillow fault, a major
geological feature readily apparent on the seismic data. The syndicate has
acquired an extensive seismic and geological database over its lands and
adjoining acreage that indicate potential hydrocarbon traps in sands in the
Temblor formation.
A separate syndicate described as the Ekho project is nearing completion of
the first well of its deal oil and gas exploration play. The Ekho project's
well lies approximately three miles southeast of the Semitropic syndicate
lands in a trap very similar to that found on the Semitropic prospect along
the same geological trend. According to a news release dated April 14,
2000, the Ekho No. 1 reached the targeted Vedder sands of the Temblor
formation and "passed through numerous zones of interest. These zones will
be tested after the well has reached its target depth." The Vedder sands
produced in the offsetting Tenneco-Great Basins 66x-3 well which flowed oil
in the 1970s but could not be completed at that time for technical reasons.
The syndicate is developing plans to drill a test well on a deep target
with a large potential reservoir. This well will be drilled to the
approximate depth of 18,500 feet to test the subthrust fault play for
Middle to Lower Miocene targets in the area. This includes the Temblor
formation which is the focus of tremendous interest in the oil and gas
industry since the blowout of East Lost Hills Bellevue No. 1 in late
November, 1998.
Olympic has participated to the extend of a 13.33-per-cent working interest
to casing point and 10-per-cent working interest after casing in three
wells drilled in October, 1999, on approximately 800 net acres of oil and
gas lease lands located in Kern county. The targets in each of the three
wells are the Mya, Arlington and Perdidio sands of Pliocene age. The three
locations are in the Buttonwillow, Garrison and Bowerbank areas and were
chosen in geologically favourable areas on the basis of seismic
interpretation.
The Garrison well tested at approximately 2.4 million cubic feet of natural
gas per day with 1,506 pounds of flowing tubing pressure and 1,535 pounds
of shut-in pressure on a 16/64-inch choke. The well has been tied in and is
awaiting connection by the utility company. As a result of this new
reservoir, another well is being considered in the area based on well
control. The Buttonwillow well encountered no significant hydrocarbons and
the Bowerbank well was abandoned due to bad ground.
The company holds a 15-per-cent working interest in the West Denverton
Creek exploration project consisting of 3,200 acres including seven-square
miles of three-dimensional seismic data which have identified three
drill-ready targets. The first test well, Glide -- Colby 2-30, was drilled
in January, 2000, and encountered no significant hydrocarbons. However, it
has provided valuable data to refine the geological and geophysical
interpretation of the area. Existing seismic data is now being reworked to
enhance control before drilling the two other targets.
Olympic has committed to participate in the drilling of an 8,200-foot
wildcat test well in the South Oakley area of Northern California to test
the third massive sand of the Mokelume formation. Olympic will pay 50 per
cent of the drilling costs to casing point and revert to a 37.5-per-cent
working interest following. The timing of this well is partially dependent
upon state and county permit approvals.
Olympic maintains a treasury of approximately $2.4-million after its
investment in M-I Vascular Innovations, and is examining its present and
future capital needs. As a result, the private placement of one million
units at a unit price of $1.20 per unit has been postponed. |
