Shamrock to get lucky with acquisition of Schaefer Oil
Shamrock Resources Inc SHJ
Shares issued 14,699,872 Nov 7 close $0.08
Thu 9 Nov 2000 News Release
Mr. Vladimir Katic reports
Shamrock has entered into an agreement to purchase outright the Schaefer
Oil Co., a privately owned California company, with current production of
230 barrels of oil per day from its two production facilities in Kern
county, California.
In the Mount Poso oil field, the Schaefer asset consists of 16 leases
covering 1,300 net acres with pay zone in the range of 50 to 100 feet at a
depth of 1,600 feet, with permeability of 500md to 4,000md and porosity of
30 to 35 per cent with original oil saturation of 70 per cent, of which 12
per cent has been produced on primary recovery. At Mount Poso, currently,
62 wells of the existing 110 wells are producing 15deg API oil.
In the Fruitvale oil field, the Schaefer asset consists of 16 leases
covering 200 net acres with pay zone in the range of 200 feet at a depth of
3,700 feet, with permeability of 448md to 1,968md and porosity of 25 per
cent with original oil saturation of 65 per cent, of which 17 per cent has
been produced on primary recovery. At Fruitvale, currently, 18 wells of the
existing 26 wells are producing 20 to 21deg API oil.
Vladimir Katic, president of Shamrock, stated: "These two assets represent
great value to Shamrock, as there has been virtually no improvements made
to the production methods or facilities over the past several years, and
with modern oil field production technology there is great potential for
significant increases in production rates. As well, there are excellent
prospects to prove-up additional reserves through exploration and adjacent
lease acquisition. Our projections indicate, and our target over the next
three years, would be to increase the current production in these two
fields by about 20 times, through field redevelopment and enhanced oil
recovery programs. Most of the 136 wells are currently in need of low-cost
workovers which in itself would immediately increase production rates with
very little investment."
"Our objective in Shamrock is to generate cash flow for the company through
the acquisition of underdeveloped producing properties, with upside
potential that can be achieved through modern technology, horizontal
drilling and enhanced oil recovery programs -- these Schaefer prospects
certainly fit the bill," said Mr. Katic.
Shamrock and Schaefer have executed the share purchase agreement on Nov. 4,
2000, for closing in the first quarter of 2001 following satisfactory
completion of environmental and commercial due diligence, and appropriate
financing. The company is currently negotiating with a potential partner,
and financial agents to complete the necessary financial arrangements in
anticipation of a QT1-2001 closing.
(c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com |
