Black Sea spuds first exploration well in Southern California
Black Sea Energy Ltd BSX
Shares issued 89,694,434 Feb 10 close $0.41
Thu 11 Feb 99 News Release
Mr. Gerry Burrows reports
The company's first exploration well, in California's southern San Joaquin
Valley is expected to spud today. The well, Almond Crest 54-20, is being
drilled in the northwestern extension of the Lost Hills oil field in Kern
County, 72 kilometres northwest of Bakersfield.
Since its discovery in 1910, the Lost Hills oil field has produced 270
million barrels of oil and 500 billion cubic feet of natural gas from
shallow reservoirs. Almond Crest 54-20 is targeting light oil and
associated gas in a deeper reservoir, on trend with nine successful wells
to the north that were drilled in 1998. Well 54-20 will be drilled to a
depth of about 4,000 feet and is expected to cost $400,000 (U.S.). The
results are expected by late February and, if successful, could lead to an
aggressive, 50-well development program.
Black Sea has 2,500 acres currently under lease in the Almond Crest
prospect, on which it holds a 100 per cent working interest. In addition,
Black Sea has a 50 per cent interest in 1,500 acres that are part of the
Lost Hills deep prospect, which is adjacent to, and east of, the Almond
Crest prospect. The Lost Hills deep prospect is on the northern extension
of the same geological prospect which contains the Bellevue No. 1
gas-blowout well that was drilled by an unrelated company in late 1998. The
geological potential is being evaluated and Black Sea expects to drill a
well later this year.
Both prospects are centred in California's energy-rich southern San Joaquin
Valley, home to the three largest producing oil fields in the continental
United States, where more than five billion barrels of oil have been
produced. Black Sea has exclusive exploration rights to approximately
80,000 acres in this region with interests, ranging from 12.5 per cent to
100 per cent, determined once each prospect is identified.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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