2 Projects announced: Coalinga & Pioneer Canal
OLYMPIC FINALIZES ACQUISITION OF COALINGA NOSE GAS PROSPECT
ORL:CDNX
ORLYF:OTC
Shares O/S 11,997,378
Olympic Resources Ltd. (“Olympic”) has finalized the acquisition of its 50% working interest in the Coalinga Nose gas prospect in Fresno County, California after completing an extensive due diligence program. 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.
According to consulting engineer Mark Anderson this is a “superior prospect based on a quality modern 3D seismic grid, abundant and thoroughly mapped well control” and “both production and down dip shows in the target horizon” The 3D 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.
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 feet 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 1890’s, 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 be located one mile to the northwest and 500 feet up dip of the 1942 well within the best amplitude response for this fault block. 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 45 days.
OLYMPIC RESOURCES LTD. www.orlresources.com 800 570-8733
Daryl Pollock,
President
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Olympic acquires Pioneer Canal well project
Olympic Resources Ltd ORL
Shares issued 11,994,378 Apr 6 close $0.47
Mon 9 Apr 2001 News Release
Mr. Daryl Pollock reports
Olympic Resources has agreed to participate in the Pioneer Canal #31-10
well in Kem County, Calif. Olympic acquired a 7-per-cent working interest
in this 9,700 feet directional development well in the Pioneer Canal area
of the Canal Oil field. The #31-10 will be drilled on the project covering
280 acres of land held by production (HBP) from three previously producing
wells and if productive, an additional 40-acre parcel will be added.
The target Stevens sands on the Bakersfield Arch in the southern San
Joaquin basin have produced over a billion barrels of oil and one trillion
cubic feet of gas over the last 70 years. The Pioneer Canal field lies in
the central area of the Bakersfield Arch and is surrounded by large
productive fields. Every one of these fields is still in production today
and active exploration efforts continue for this prolific producer. The
Canal Oil field and the Pioneer Canal area are separating anticlinal
structures at the target Stevens sand depths of 8,900 to 10,500 feet. The
principal producing interval in these fields is the Stevens formation of
Miocene age.
The geological targets were defined from maps made from both subsurface
(well control) and 2D seismic data. The #31-10 well prospect is a tightly
controlled subsurface play with seven wells drilled within a
2.000-feet-diameter square that defines the four-way dip-closed anticline
that is Pioneer Canal. The well will target the very peak of the Pioneer
anticline.
The #12-10 well, located about 0.4-mile west of the prospect well, was
drilled in December, 1999, with the intern of testing a near-crestal upper
Stevens structure and sub-Stevens targets. Current mapping shows that the
#12-10 well is some 25 feet from the structural crest at the upper Stevens
horizons. The fourth canal sand of the upper Stevens was encountered in the
#12-10 well at 9,272 feet with very good live oil and gas shows. It was the
first zone perforated in that well and had initial 30-days-average
production of 52 barrels of oil per day (BOPD) and 101 barrels of water per
day (BWPD). The first canal sand in the #12-10 at 8,928 feet was
recompleted and added with the fourth canal sand in May, 2000. This
increased production to 166 BOPD and decreased water production to 24 BWPD.
Pressures were also significantly higher with the addition of the
one-inch-canal perforations which may have helped block out some of the
fourth-canal zone water. Since that recompletion, production has averaged
79 BOPD from both zones.
The #31-10 is expected to encounter the first canal sand at approximately
25-feet high to the #12-10 well. The signal KCL #32-10 well drilled and
abandoned in 1959 also shows a common first canal oil/water contact #12-10
well indicating the first canal sand was bypassed with 17 feet of pay. The
#31-10 well is expected to be 25 to 30 feet structurally high to the
#32-10. If such an elevation gain is achieved in both wells, an oil column
of 40 feet or more could be encountered in the first canal sand. The
dip-closed anticlinal structure in the first canal sand is mapped at 70
acres of aerial extent and it is unlikely that the #12-10 will be able to
drain either of the two producing zones in this 70-acre closure. In
addition, the up-dip reserves would likely be left behind. Both zones, if
encountered at the higher elevation, would also be expected to produce less
water.
Drilling operations are due to commence within two weeks. |
