Olympic Resources readies for Coalinga No. 1 drilling
Olympic Resources Ltd ORL
Shares issued 12,214,378 Oct 10 close $0.58
Thu 11 Oct 2001 News Release
Mr. Daryl Pollock reports
The Paul Graham drill rig is being mobilized onto the Olympic Coalinga No.
1 gas well located in Fresno county, California, A series of steps will be
undertaken to include the following: the 5-1/2" cased hole which has been
cemented to current depth of 10,106 feet will be cleaned to effective
depth; a cased hole evaluation log (TMD-L); and a cased hole cement bond
log will be run over the Martinet sand and Moreno shale formations. The
well will then be deepened to the main objective, the Brown Mountain sand,
beginning with a mud weight of 13.5 ppg. Upon reaching total depth, an open
hole e-log of the Brown Mountain sand will be run.
The casing is 21 feet below the lowest potential productive interval from
Olympic's first secondary target, the Paleocene Martinet sand. The
Cretaceous Moreno shales lie below this formation which extend to 10,800
feet in the original hole and also holds several potential secondary
targets. Upon review of the mud logs from the sidetrack operation, there is
a total of 97 feet of sand from three distinct zones, each having very
sharp and high gas shows and a high content of live oil. These sand
sections also correlate to the very distinguishable drilling breaks
indicating a high-quality sand. Only two wells, drilled in the 1940s, have
penetrated the Martinet sand within the prospect area located 3,500 feet
northwest and 5,200 feet southeast of the Olympic Coalinga gas well. Both
penetrated these same gas and oil sands and combined with data from the 3-D
seismic data, it is expected that these sands are pervasive throughout the
property. Initial results from this secondary target alone could possibly
justify completion of this field.
Initial e-logs of the Brown Mountain sands indicated potential net pay of
between 50 to 100 feet, Equipment difficulties caused some delays in
testing the extent of the secondary target, the Moreno sands and during
these logging delays, the well deteriorated below the 9,000-foot level
requiring a sidetrack operation below this level to redrill down to total
depth. At this point it is still preliminary. However, based on the data
received to date, the Olympic Coalinga No. 1 well has the potential of
being placed in the category of a discovery well.
To date, $5-million (U.S.) 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, the 3-D seismic data
"clearly corroborates existing production from known stratigraphic and
structural features" from the Cretaceous Brown Mountain formation which is
largely untested in this area. Only one well has penetrated the Cretaceous
Brown Mountain. sand within the seismic shoot area in 1942 which had
significant untested gas shows in the Brown Mountain sand, 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. |
