News from this week:
Olympic completes Pioneer Canal drilling operations
Olympic Resources Ltd ORL
Shares issued 11,994,378 May 15 close $0.60
Wed 16 May 2001 News Release
Mr. Daryl Pollock reports
Olympic Resources has been advised that drilling operations on the Pioneer
Canal No. 31-10 well in Kern county, California, have been successfully
completed. This 10,066-foot development well includes 320 acres of land in
the Pioneer Canal area of the Canal oil field.
Preliminary log evaluation indicates up to five productive intervals from
the upper and lower Stevens formations. Normal completion techniques will
allow for testing of the lowest productive interval first followed by the
upper zones as normal depletion occurs. Anticipated flow results will vary
from zone to zone but initial production rates are expected to be in the
range of 150 to 250 barrels of oil per day and 200,000 cubic feet to
300,000 cubic feet per day of gas. This well appears to be the best of the
existing producers within the field and should produce a greater amount of
reserves throughout the well's life.
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 during the past 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
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Solaia to earn Coalinga interest
Olympic Resources Ltd ORL
Shares issued 11,994,378 May 15 close $0.60
Wed 16 May 2001
See Solaia Ventures Inc (SOL) News Release
Mr. Arndt Roehlig reports
Solaia Ventures has signed an agreement with Olympic Resources Ltd. to farm
in for a 5-per-cent working interest in the Coalinga Nose play located in
Fresno county approximately 150 miles north of Los Angeles, Calif.
Olympic's participation in this prospect was reported in Stockwatch on Feb.
13, 2001.
To earn its interest, Solaia will have to pay 5 per cent of the drilling
and related costs of the initial well estimated to be $49,560 (U.S.) to
earn 3.75-per-cent net revenue interest after payout. Dependent upon the
success of the first well, Solaia may participate in the drilling of a
second well on similar terms.
Solaia chose this joint venture project above others under consideration as
superior because of the location's history, the availability of existing
three-dimensional seismic and its potential size.
The Coalinga Nose prospect consists of 5,000 acres of leased land and is
located one mile southeast of the East Coalinga extension, which has so far
produced 503 million barrels of oil. The prospect is also less than one
mile northwest of the Kettleman Hills field, which has so far produced 2.9
trillion cubic feet of gas and 458 million barrels of oil.
According to Robert D. Dennis Sr., petroleum engineer of SI International,
an independent petroleum and natural gas consulting firm located in
Bakersfield, Calif., this is an exploration prospect, of which the quality
of the play is judged to be very good. The parameters required for a valid
prospect are source, migration, reservoir and trap. The mud log
documentation in an older No. 68-20 well located down dip of the prospect
area shows off-scale gas chromatograph readings and a significant break in
the Brown Mountain sands. Well No. 68-20 is at the edge of the mapped
seismic and indicates that there are hydrocarbons present in the section
and there appear to be reservoir quality sands. The prospect relies on the
stratigraphic nature and the pinch out of the sands over the nose to create
the trapping mechanism for the play.
Modern 3-D seismic data have now made it possible to locate and image this
prospect. The improvement over 2-D seismic shows the specific targets and
structural elements. The 3-D seismic data and coverage of the play area are
very good to excellent and clearly show the geometry of the structure
anticlinal nose of the shallower Guijarral Hills oil field area. The major
faulting associated with the formation of the structure is clearly
demonstrated in the data. In addition, smaller faults are also evident that
may form separate pools within the two prospect areas. Both structural
prospects have potential of multiple well targets. Production per well rate
forecasts of two million to five million cubic feet of gas per day are
within range of reasonable estimates for analogous reservoirs in the
region. The 1942 No. 68-20 well was abandoned, as there was no market for
gas during those years. With renewed interest, increased price for natural
gas and the advent of modern 3-D seismic these deeper prospects in Fresno
county such as the company is attempting present inviting exploration
targets.
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 the fault block. Drilling is
expected to commence mid-June. A finder's fee is payable subject to
approval of the Canadian Venture Exchange.
Solaia adds missing Coalinga deal information
See Solaia Ventures Inc (SOL) News Release
Mr. Arndt Roehlig reports
Further to Solaia's news release of today's date, the release should have
read that the agreement, for the assignment of a 5-per-cent interest in the
Coalinga Nose play, is with an arm's-length third party that has acquired
the interest from Olympic Resources. In addition to the drilling costs,
Solaia is required to pay $40,000 (U.S.) and issue 200,000 common shares. |
