Berkley et al penetrates 1,250 of Temblor formation
Berkley Petroleum Corp BKP
Shares issued 98,994,840 Nov 17 close $7.50
Mon 20 Nov 2000 News Release
Also Elk Point Resources Inc (ELK)
Also Hilton Petroleum Ltd (HTP)
Also Kookaburra Resources Ltd (KOB)
Also Paramount Resources Ltd (POU)
Also Richland Petroleum Corp (RLP)
Also Trimark Oil & Gas Ltd (TMK)
Mr. Michael Rose reports
Berkley ELH No. 2 has penetrated approximately 1,250 feet of the Temblor
formation and a seven-inch liner has been successfully run to total depth
of 17,650 feet and cemented in place over the weekend.
During drilling from Oct. 18 to Nov. 9, numerous lost circulation zones
were encountered and gas was flared at surface for several hours on Oct.
31. A complete suite of evaluation logs were run from 14,250 feet to total
depth and 17 sidewall core plugs were obtained.
Based on mud losses while drilling, indicative of excellent reservoir
permeability, gas kicks and flaring at surface, as well as sand/reservoir
and fracture data from logs and cores, Berkley ELH No. 2 was cased to total
depth as a potential gas well.
Production rates will be determined from formal production testing. As
mentioned previously, Berkley ELH No. 2 can be quickly and cost-effectively
tied in to the pipeline system currently being constructed for Berkley No.
1.
The combination of lost circulation and strong gas kicks made further
drilling operationally difficult and expensive. With the seven-inch liner
in place and the existing gas zones safely behind pipe, it is now possible
to drill additional Temblor section and evaluate deeper potential zones
with respect to reservoir quality, gas column and pressure gradient. The
joint venture participants have agreed to drill up to an additional 250
feet out of the base of the liner which will take approximately 20-30 days.
Should prospective zones be encountered at any time during drilling
operations the option of calling total depth and running a 4.5-inch liner
is available. Production testing will commence within 30 days of final
total depth.
The decision to drill ahead is based on the joint venture participants'
assessment that for relatively low incremental cost important information
for the overall East Lost Hills Temblor play could be gained without
compromising existing penetrated gas zones. The information gained during
this relatively short time will allow for possible design modifications on
wells yet to be drilled or reworked including Berkley No. 4, which is
scheduled to spud Nov. 25, and Bellevue 1-17R. This will ultimately assist
in accelerating drilling time and reduced costs. Deepening of Berkley ELH
No. 2 will commence within a week.
Public company partners with Berkley Petroleum in the East Lost Hills
development are Elk Point Resources, Hilton Petroleum, Kookaburra
Resources, Paramount Resources, PYR Energy Corp., Richland Petroleum,
Trimark Oil & Gas, and Westminster Resources. Armstrong Resources LLC is a
private company partner. |
