Olympic Resources Ltd. (“Olympic”) provides the following update on some of its oil and gas operations in California:
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 100-200 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 this week.
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 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 the well has commenced production as of today, initially producing at 500 MCF/day.
Source Energy Prospect, California
Olympic holds a 13% working interest in the SE Garrison City #1 gas well put on initial production in late May, 2000. The well produced at a rate of approximately 2.0 million cubic feet of natural gas per day with a tubing pressure of 1510 psi. until early December when it encountered water problems. A recently completed seismic survey was conducted to determine whether a development well is viable. Preliminary results of the seismic line processing reveals that there is sufficient attic gas potential to justify a development well. Plans are currently underway to drill this development well.
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.
OLYMPIC RESOURCES LTD.
Daryl Pollock,
President
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