1st Quarter Results
7/30/01
OLYMPIC RESOURCES LTD ("ORL-V") - 1st Quarter Results
Olympic Resources Ltd. ("Olympic") announces results for the quarters ended May 31, 2001 and May 31, 2000.
COMPARATIVE STATEMENTS OF INCOME AND LOSS Three months ended Three months ended May 31, 2001 May 31, 2000
Revenues $108,321 $34,802
Direct Expenses 9,450 0
Revenue from operations 98,871 34,802
General & administrative expenses 100,817 93,982
Net income ($1,946) ($59,180)
EPS ($0.00) ($0.01)
COMPARATIVE BALANCE SHEETS May 31, 2001 May 31, 2000
Cash & current receivables $2,221,962 $2,628,516
Resource properties & investments 2,126,029 1,436,241
Total Assets 4,347,991 4,064,757
Current liabilities 176,182 175,184
Shareholders' equity 4,171,809 3,889,573
Total liabilities & shareholders equity $4,347,991 $4,064,757
During the three-month period ended May 31, 2001, gas revenues were $92,248, up from $nil reported from the previous year. Net income for the year to date is ($1,946), up from a loss of ($59,180 the previous year due to increased gas revenue. General and administrative expenses were $100,817, up from $93,982 the previous year representing no significant change. One gas well was drilled and total costs incurred to date are $71,460.
Olympic held its Annual General Meeting in Vancouver on July 25, 2001 and the following persons were re-appointed to the Board of Directors:
Daryl Pollock - President and C.E.O.
John Pierce - Chairman
Dr. Ken Friedman
Patrick Forseille - Chief Financial Officer
Peter Jensen
Dr. David Cooke retired from the board and Mike Lathigee was appointed in his place. Mr. Lathigee is the founder of the Wealthbuilder Investment Club which is one of the largest investment clubs in Western Canada. "Michael is dynamic, energetic and a focused individual and we are very pleased to have him and the Wealthbuilder Investment Club as part of the Olympic team," says Daryl Pollock, President and CEO of Olympic.
Also, Beverley Funston was appointed as Corporate Secretary.
The Company also provides the following update on some of its oil and gas operations in California:
Coalinga Prospect, California
Drilling operations are proceeding smoothly on the OLYMPIC COALINGA NO. 1 gas well located in Fresno County, California. As of this day, regular drilling operations have reached 8,500 feet towards a target depth of 11,200 feet. Olympic currently holds a 20.5% working interest which results in a 17.5% net revenue interest before payout and a 14.5% net revenue interest after payout. The Coalinga Nose Prospect consists of 5,000 acres of leased land and is located less than one mile southeast of the East Coalinga Extension which has produced 503,000,000 barrels of oil. The prospect is also less than one mile northwest of the Kettleman Hills Field which has produced 2.9 TCF and 458,000,000 barrels of oil.
To date, US$ 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. 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.
Only one well has penetrated the Cretaceous Brown Mt. Sand 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. Four-way closure can be observed within the prospect area where the Brown Mt. Sand is up to 400 feet thick.
This prospect is being tested with an 11,200 foot well 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 well is expected to reach target depth in mid August.
Pioneer Canal #31-10, California
Olympic holds a 7% working interest in a 9,700 foot directional development well in the Pioneer Canal area of the Canal Oil field. The #31-10 was drilled on the project covering 320 acres of land HBP (held by production) from three previously producing wells. 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 150-250 barrels of oil per day and 200-300 mcf/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. Production is expected to commence in late July.
Tycoon #1-3, California
The Company participated to the extent of a 17.875% working interest in the Tycoon #1-3 well on the Rancho Capay gas field in Tehema County, California. The Tycoon 1-3 intersected 50 feet of net pay from two primary targets in the Cretaceous Forbes Sand defined from 3-D seismic data, which show two bright spots with superb amplitude and AVO characteristics. The targets are similar to those in the adjacent East Rice Creek gas field, which has an average pool size of 2BCF. The bright spots occur within discontinuous turbidite sands that feather out onto a westerly rising structure, which is a typical structural gas trap within the adjacent East Rice Creek gas field. Various land and pipeline issues have now been resolved and this well is expected to commence production shortly.
East Corning Prospect, California
Olympic acquired 32% of the East Corning Project in Tehema County California. The East Corning project consists of 6,500 acres in oil and gas leases and over 25 miles of 2D seismic data. The project is 100 miles north of Sacramento within the main Forbes depositional fairway at the northern portion of the Sacramento Valley gas trend. The property lies adjacent to the Corning Gas Field to the east and directly north of the Rice Creek gas field. It is analogous to the East Rice Creek field and is one of the few underexplored regions remaining in California. Well density and Forbes penetrations are sparse within the project area. The East Corning Project has never received 3D seismic coverage despite being on trend with prolific Forbes production to the south. 3D coverage directly south of the project has established numerous pools including Rice Creek (35 BCF, primarily Forbes) and Malton Black Butte Field (132 BCF, Kione and Forbes). The closest significant Forbes production to the project area is from Rice Creek where production from the lower Forbes section is most common. The primary target is the Upper Cretaceous Forbes Formation which has thick sections of Forbes sands and are comprised of turbidite fans and channel-levee complexes. The sands were deposited from North to South as turbidite fans. The primary trapping mechanism in East Corning is stratigraphic although general structural bowing, regional folding and general northwest-southeast faulting with some cross-faulting are anticipated to enhance gas entrapment. Additional existing 2D seismic data produced prior to the development of the AVO process has been acquired and reprocessed by Olympic's geologists. The reprocessed data accumulated to date has already identified several prospective drill targets. Plans are presently underway to shoot 3D seismic data over the prospect in order to identify the best targets in this field.
Olympic is a public oil and gas exploration company with a strategic focus on exploring for and developing significant oil and gas reserves. To date, the primary focus of our activity has been in California. Since our early involvement in this area in 1998, Olympic has established itself with a substantial acreage position covering several different oil and gas prospects. We continue to acquire acreage positions in exploration areas we have identified as having significant oil and gas reserve potential. TEL: (604) 689-1810
Daryl Pollock, President FAX: (604) 689-1817 TOLL FREE: 1-800-570-8733 |
