NEWS Release
Olympic Resources Ltd. (“Olympic”) reports log results from the OLYMPIC COALINGA NO. 1 gas well located in Fresno County, California. A cased hole evaluation log (TMD-L) and a cased hole cement bond log have been run over the secondary Martinez Sand target. The main intervals, 9,877’ to 9,896’ (19 feet), 9,899’ to 9,922’ (23 feet) and 9,924’ to 9,933’ (9 feet) have returned excellent resistivity and correlate to the Neutron curve on the Bond Log indicating mostly sand throughout the interval. Another quality response is the Sigma Curve indicating very strong evidence of hydrocarbons. Above average porosities are also indicated from these same intervals. These results correlate with the open hole mud log gas shows increasing overall confidence in the data. Other potential intervals are indicated but require further evaluation.
Sidetrack drilling operations from 10,167 feet to target depth in the main objective, the Brown Mountain Sand will commence later today and are expected to take between 7 to 10 days. Currently, Olympic holds a 20.5% working interest in the Coalinga prospect with a 17.5% net revenue interest before payout and a 14.5% net revenue interest after payout.
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 re-drill down to total depth.
To date, US$ 5,000,000 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 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 which had significant untested gas shows in the Brown Mt. 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.
OLYMPIC RESOURCES LTD. |
