Participates in Coalinga Nose gas prospect
2/13/01
OLYMPIC RESOURCES LTD. ("ORL-V") - Participates in coalinga nose gas prospect
Daryl Pollock, President OF Olympic Resources Ltd. ("Olympic") announces that Olympic has agreed to acquire a 50% working interest in the Coalinga Nose gas prospect in Fresno County, California. Olympic currently intends to preserve up to a 25% working interest in the project. 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 so far produced 503,000,000 barrels of oil. The prospect is also less than one mile northwest of the Kettleman Hills Field which has so far produced 2.9 TCF and 458,000,000 barrels of oil.
To date, US$ 2,000,000 has been spent on the land including a 3-D seismic survey shot in 1997 covering 16 square miles including the prospect area. Target beds are the Cretaceous Brown Mt. Sand which only one well tested within the seismic shoot area in 1942. This well had significant untested gas shows in the Brown Mt. Sand from 11,455 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. The Brown Mt. Sand produced 2.4 MMBO of 34 API gravity oil 6 miles to the northwest of the prospect area in Oil City. Since the Oil City oil field was discovered in the late 1890s, no records of gas production were kept as natural gas was vented and not a valuable commodity at that time. The prospect is also on the same anticlinal trend as the 2.9 TCF Kettleman Hills Field located directly southeast of the prospect area.
Seismic data indicate structural and stratigraphic traps are found along the northwesterly trending Coalinga Nose anticline. Bounding Cretaceous faults within the prospect cut across contours creating gas traps in the Brown Mt. Sand which is up to 400 feet thick. Also, high amplitude seismic reflectors observed in the Brown Mt. Sand may indicate gas saturation. Four-way closure can be observed within the prospect area as the Brown Mt. Sand thins to the northwest and pinches out to the southeast. These structures have defined two separate prospective fields within the prospect area.
The first prospect will be tested with a 12,000 foot well which will penetrate the Brown Mt. Sand. This prospect is the most aggressive undertaking by Olympic to date in its quest to become an established natural gas producer in the California market. Drilling operations are expected to commence within 90 days.
WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. TEL: (604) 689-1810 Olympic Resources Ltd. FAX: (604) 689-1817 TEL: 1-800-570-8733 |
